Meteor FTSE Quarterly Step Down to 85 Kick Out Plan November 2024 - HS9129

Meteor

Meteor FTSE Quarterly Step Down to 85 Kick Out Plan November 2024 - HS9129

The Meteor FTSE Quarterly Step Down to 85 Kick Out Plan November 2024 - HS9129 is a maximum 6 year, 3 week investment offering a Potential gross investment return of 1.70% payable for each quarter in force from year 1. This plan is only available on an Advised basis.

  • Potential return: 1.7 % payable for each quarter in force from year 1
  • Product type: Capital at Risk
  • Investment type: Growth/Kick-Out
  • Closing Date: 13 November 2024
  • ISA Transfer: 30 October 2024
  • Start Date: 15 November 2024
  • Maturity Date: 15 November 2030
  • Market / index link: FTSE 100 Index
  • Counterparty: HSBC Bank plc
  • Investment term: 6 years, 3 weeks
  • Kick-out / Early maturity: Yes
  • Barrier type: End of Term
  • Barrier level: 65%
Important: The closing date for applications by cheque is 11 November 2024 and by bank transfer is 13 November 2024.
The closing date for ISA transfer applications is 30 October 2024.

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

Complete the form and we will email you the requested literature and instructions on how to invest.

Select the application form you require

How to Invest?

1 Call for a free initial telephone consultation. If you wish to progress the process of the product purchase, the regulatory process of ‘advice’ must commence.

2 The completion of a financial review – which will confirm details of your income/capital and investment needs and experience

3 The completion of a risk profiler - which will help to measure your attitude to risk.

This process will enable ‘advice’ to be provided in relation to the suitability of the product to meet with your needs. The fee for this service and process is 1.5% (subject to a minimum fee of £300) for focused advice – which is focused and narrowed to the suitability of the structured product you want to purchase.

Further Information

The Meteor FTSE Quarterly Step Down to 85 Kick Out Plan November 2024 - HS9129 is a maximum 6 year, 3 week investment offering a Potential gross investment return of 1.70% payable for each quarter in force from year 1.  This plan is only available on an Advised basis.

Investment Return: The plan starts on the Start Date. On a Measurement Date, if the level of the Index is at or above a defined percentage of its Start Level, the plan will end and pay Growth equal to 1.70% of the money invested for every 3 months the plan has been in force. This is called a Kick Out and the barrier levels are called the Kick Out Barriers. The first date this can happen is 17 November 2025. If the plan reaches the End Date, the Index will be measured for the last time.

If the End Level of the Index is at or above 85% of its Start Level, the plan will pay Growth equal to 40.80% of the money invested, otherwise, no Growth will be achieved.

Kick Out Barriers: 105%/105%/105%/105%/100%/100%/100%/100%/100%/100%/100%100%/95%/95%/95%/95%/90%/90%/90%/90%/85% (measured quarterly after 1 year).

Capital Return: 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. 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 this investment is HSBC Bank PLC.  

About HSBC Bank PLC: 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 HSBC Bank PLC in its capacity as issuer of the financial contracts. The financial contracts will be notes linked to the performance of preference shares issued by UKSED3P Investments Limited. This arrangement effectively loans your money to the Counterparty, entitling you to the features of this plan. 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.

Don’t Forget the Risks 

As with all forms of investment there are risks involved. These plans do not guarantee to repay the money invested. The potential returns of the plans and repaying the money invested are linked to the level of the stock market and also depend on the financial stability of the Issuer and Counterparty.  

Past performance is not a guide to future performance and may not be repeated.  Investment involves risk. The performance data does not take account of the commissions and costs incurred on the issue and redemption of shares. The value of investments and the income from them may go down as well as up and investors may not get back any of the amount originally invested.  Because of this, an investor is not certain to make a profit on an investment and may lose money.  Exchange rate changes may cause the value of overseas investments to rise or fall.  

The promotion of the plans does not constitute ‘advice’ to invest. Advice is always specific to an individual investor’s circumstances and needs, following the process of ‘know your customer’, with the aim of ensuring that any product is suitable for an investor.  

As always, the recommendation and common-sense approach is to consider product solutions as a portfolio, never over-exposing oneself to a point of financial pain and suffering liquidity or counterparty over exposure. 

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.