10:10 FTSE Kick Out Plan February 2020 (Option 3)
This is a ten-year two-week Plan based on the performance of the FTSE™ 100 Index, the Underlying Asset. The Plan has three options and is constructed to offer a Potential Return of 13.25% for each year the Plan runs, paid gross, with the possibility of early maturity and the full repayment of Initial Capital from the end of the Plan’s second year and annually thereafter. The Potential Return is only payable if the Plan kicks out.
The closing date for ISA transfer applications is 22 January 2020.
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 7 February 2020 for bank transfer applications.
The closing date for applications by cheque is 3 February 2020
The closing date for ISA transfer applications is 22 January 2020.
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
The Mariana 10:10 FTSE Kick Out Plan is a 10 year two weeks Plan with the potential to mature early from the end of the Plans second year.
The Plan is constructed to offer a Potential Return of 13.25% in Option 3 for each year the Plan runs with the possibility of early maturity and the full repayment of Initial Capital from the end of the Plan’s second year and annually thereafter. The Potential Return is only payable if the Plan kicks out.
Should the Closing Price of the Underlying Asset on an Observation Date be at or above the Kick Out Trigger Level, the Plan will mature early, repaying your Initial Capital plus the Potential Return multiplied by the number of years the Plan has run.
The Kick Out observations begin on the second anniversary date and continue on an annual basis until the Plan’s Maturity Date (from 21 February 2022 to 21 February 2030).
If the Plan has not already kicked out, Initial Capital will be repaid in full at the end of the Plan’s term if on the Maturity Date (21 February 2030) the Closing Price of the Underlying Asset is not more than 30% below the Start Level.
If on the Maturity Date the Closing Price of the Underlying Asset is less than 70% of the Start Level (representing a decline of more than 30% from the Start Level), your Initial Capital will be lost at a rate of 1% for every 1% the Closing Price of the Underlying Asset is below the Start Level.
The Plan has the opportunity to kick out on an Observation Date providing the Closing Price of the Underlying Asset is at or above 105% of the Start Level. As an example, if the Plan kicks out at the end of year 4 with a Potential Return of 13.25% per annum, you will receive the return of 53% gross (4 x the annual return) plus your Initial Capital. Should the required conditions not be met on any of the pre-defined Observation Dates, you will not receive the Potential Return and your Initial Capital could be at risk.
What happens if the Plan doesn’t kick out?
If the Plan does not kick out or mature early, the repayment of your Initial Capital on the Maturity Payment Date depends on the performance of the Underlying Asset. Therefore, if the Plan does not kick out, and on the Maturity Date the Finish Level of the Underlying Asset is less than 105% of the Start Level but not less than 70% of the Start Level, you will not receive the Potential Return but your Initial Capital will be repaid in full.
These examples are not exhaustive. Please be aware that you are likely to receive less than your Initial Capital if you decide to encash the Plan early.
This investment may be suitable if:
- You have either received advice or a financial adviser has confirmed that this investment is appropriate for you.
- You understand the risk associated with investing in this Plan (see page 21 of the brochure for more information).
- You are able to make an informed decision based on the information provided in the Brochure and in the Issuer’s Key Information Document (KID).
- You understand that the returns are pre-defined and that you will forgo any growth in the Underlyings which exceeds the returns defined in the Brochure.
- You are comfortable that you are making an investment into a Plan that has a term of ten years.
- You are comfortable that the Plan’s returns are linked to the performance of the FTSE™ 100, the Underlying Asset.
- You are comfortable that any Potential Return and the repayment of your Initial Capital is dependent on the continuing solvency of the Counterparty.
- You are comfortable that your capital is at risk and you could lose some and up to all of your investment.
- You are looking to invest in a Plan that offers a potential growth payment and not an income payment.
- You can afford to leave your money invested for the full term of the Plan.
- You have other savings or investments that are easily accessible to cover emergencies.
- You understand how the Plan works.
- You have at least £5,000 to invest.
- You are comfortable with the fact that the Plan may mature early (kick out).
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: