FTSE Daily Kick Out Plan November 2023 - BN7947
The FTSE® Daily Kick Out Plan November 2023 - BN7947 is a maximum 7-year, 3-week investment offering a potential gross investment return of 8.85% per annum, based on days in force, payable after year 2.
- Market / index link: FTSE 100 Index
- Counterparty: BNP Paribas
- Investment term: 7 years, 3 weeks
- Kick-out / Early maturity: Yes
- Barrier type: End of term
- Barrier level: 65%
The closing date for ISA transfer applications is 20 October 2023.
Product Literature & Forms
You should always read the relevant plan brochure and any other plan documentation, for full details of the plan’s features, including any risks, and the terms and conditions. In addition to the plan brochure and terms and conditions there are other important documents, including a Key Information Document ('KID'), that you should consider, before deciding to invest in the plan.
If you do not fully understand the risks or are unsure as to the suitability of the investment, please contact us
How to Invest?
Applications for the Plan must be submitted via Best Price Financial Services and received by 5pm on 3 November 2023 for bank transfer applications.
The closing date for applications by cheque is 1 November 2023
The closing date for ISA transfer applications is 20 October 2023.
This will enable us to process your application and forward it on to the structured product provider.
1 Firstly, print off and complete our Appropriate Assessment Questionnaire. All applications require two proofs of identity - see the questionnaire for more information.
2 Next download, print and complete the application form available. Note that product applications will have multiple documents, so please choose the one relevant to you.
3 Place all completed documents - questionnaire, proofs of identity, application form and cheques for payment - in an envelope and post to:
Best Price Financial Services,The Tythe Barn, 5 Eglwys Nunnydd,
Margam, Neath Port Talbot
SA13 2PS
Further Information
The FTSE® Daily Kick Out Plan November 2023 - BN7947 is a maximum 7-year, 3-week investment offering a potential gross investment return equivalent to 8.85% per annum, based on days in force, payable after year 2.
Investment Return: The plan starts on the Start Date and is measured on each business day from 7 November 2025. On a Measurement Date, if the level of the Index is at or above 100% of its Start Level, the plan will end and pay Growth. This is called a Kick Out and the barrier level is called the Kick Out Barrier.
If a Kick Out happens, the amount of Growth payable will depend on the how long the plan has run in years. This is calculated by: 1. …counting the number of days elapsed since the Start Date, 2. ...dividing by 365, 3. …then multiplying by 8.85% of the money invested.
Customers will get all their invested money back on a Kick Out; or, at the End Date if the End Level of the Index is at or above 65% of its Start Level. This barrier level is called the Loss Barrier.
Capital Return: If the End Level of the Index is below 65% of its Start Level, customers will lose money proportional to the fall in the Index.
The Counterparty for the plan is BNP Paribas SA. The underlying financial contracts in this plan are manufactured by an investment bank. Because they are ultimately responsible for any payment obligations such as any money made from the plan and the repayment of invested money, they are considered the Counterparty.
More specifically, the Counterparty to this plan is BNP Paribas S.A. in its capacity as issuer of the financial contracts. The financial contracts will be notes linked to the performance of preference shares issued by BNP Paribas Synergy Limited. This arrangement effectively loans your money to the Counterparty, entitling you to the features of this plan.
An application will be made for the financial contracts to be listed on the Euro MTF. More information can be found in the Counterparty’s Offering Documentation: The most recent version of the base prospectus for the issuance of preference share linked notes under the issuer’s programme for the issuance of notes and warrants as approved by the UK FCA, any supplements thereto and the final terms relating to the notes.
It is possible that the Counterparty could collapse or fail to make the payments due from the Plan. If this happened the investor would lose some, or all, of the money they invest in the Plan, as well as any investment return to which they might otherwise have become entitled.
Capital Return: If the End Level of the Index is below 65% of its Start Level, customers will lose money proportional to the fall in the Index.
It is the understanding of Meteor that any investment return from this Plan will be subject to Capital Gains Tax.
Please be aware that if you want Meteor to send regular communications in the post, they will do so but there will be an initial charge of 0.25% for this service.
Please ensure you have read and understood the important documents associated with this product before investing.
To gain a full understanding of this Plan it is important that you read the brochure carefully, including the product risks and terms and conditions. If you are unsure about any aspect of this investment product, please seek financial advice to ensure the Plan suits your requirements and overall investment planning.
Don’t forget the risks
All investments carry risk. It is identifying those risks, understanding how they may affect an investment and assessing whether an investment is suitable for your circumstances that is important.
The potential returns of most structured products and repaying the money invested are usually linked to the level of a stock market index and also depend on the financial stability of the issuer and counterparty bank. You should only consider investing if you understand and accept the risk of losing some or all of any money invested.
You should always read the relevant plan brochure and any other plan documentation, for full details of a plan’s features, including any risks, and the terms and conditions. In addition to the plan brochure and terms and conditions there are other important documents, including a Key Information Document (‘KID’), that you should consider, before deciding to invest in a plan.
Structured products should only be considered as part of a diversified and balanced portfolio.
Below is a summary of some of the main risks usually associated with an investment in structured products plans:
Market risk to potential returns
Whether or not a plan generates the potential returns for investors usually depends on the closing level of the relevant index on the relevant dates for the plan, i.e. the kick-out anniversary dates for kick-out products; the early maturity dates and end dates for growth products; the annual income dates for income products.
If the index closes below the level needed, for the plan or plan options chosen, on all of the relevant dates, the plan or plan options will not generate a return.
Market risk to repayment of money invested in 'Capital-at-Risk' plans
If the closing level of the relevant index is below the level needed on all of the kick-out anniversary dates or early maturity dates, if relevant for the plan or plan options chosen, and on the end date, repaying the money invested at maturity will usually depend on the closing level of the index on the end date..
Different structured products use different types of protection barriers. Some products use barriers that are observed every day that can therefore be breached on any day during the investment term, while some products use barriers that are only observed at the end of the investment term and that cannot therefore be breached during the investment term.
Market risk to the repayment of money invested on the end date will depend on the type of barrier and its level.
For example, for a product with an end of term barrier, set at 60% of the start level, if the index for the plan closes at or above 60% of the start level, on the end date, money invested will be repaid in full (less any agreed adviser fees and withdrawals). However, if on the end date the index closes below 60% of the start level, the amount of money repaid (less any agreed adviser fees and withdrawals) will be reduced by the amount that the index has fallen. For example, if the index has fallen by 45%, the repayment of money invested will be reduced by 45% (meaning that investors will get 55% of their investment back).
'Protected' types of structured products
Some structured product plans are designed so that they are 100% protected from stock market risk at the end date.
It is important to understand that even if a structured product plan is designed with 100% protection from stock market risk, at the end date, it will still usually have issuer and counterparty bank risk. In other words, both the potential returns of the plan and repaying the money invested at the end date will depend on the financial stability of the issuer and counterparty bank. If the issuer and counterparty bank become insolvent, or similar, or fail to be able to meet their obligations, it is likely that investors will receive back less than they invested.
Issuer and counterparty bank risk
Both the potential returns and repaying the money invested of most structured products depend on the financial stability of the issuer and counterparty bank. If the issuer and counterparty bank become insolvent, or similar, or fail to be able to meet their obligations, it is likely that investors will receive back less than they invested.
Financial Services Compensation Scheme ('FSCS') protection
It is important to understand that it is not usually possible to claim under the Financial Services Compensation Scheme if the issuer and counterparty bank fail to meet their obligations or if the stock market index that a plan links to falls.
Structured deposits
Structured deposit plans are deposit-based and will usually be fully protected from stock market risk at the end date and also benefit from the protection of the Financial Services Compensation Scheme, if the bank or building society is a licensed UK deposit taker.