Dual Index Semi-Annual Kick Start Plan November 2019
The Dual Index Semi-Annual Kick Start Plan November 2019 is a maximum 8-year 3-week investment offering a potential gross investment return of 18% at the end of year 1 and 3.50% for each 6-month period thereafter.
- Market / index link: FTSE 100 Index and EURO STOXX 50
- Counterparty: HSBC Bank plc
- Investment term: 8 years 3 weeks
- Kick-out / Early maturity: Yes
- Barrier type: End of term
- Barrier level: 65%
The closing date for ISA transfer applications is 23 October 2019.
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?
Please note: This plan is available on an advised basis only. If you are interested in this plan, please telephone us on 01639 860111 to arrange a free consultation
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 Dual Index Semi-Annual Kick Start Plan November 2019 is a maximum 8-year 3-week investment offering a potential gross investment return of 18% at the end of year 1 and 3.50% for each 6-month period thereafter.
The capital and investment return are linked to the performance of the FTSE 100 Index and the EURO STOXX 50 Index (each 'an Index', collectively ‘the Indices’).
The Securities purchased will be issued by HSBC Bank plc.
This is a capital-at-risk Plan and the investor may lose some or all of their money if the Final Level of one or both Indices is below 65% of its Opening Level. In this case, the reduction in the money invested in the Plan at the Maturity Date will equal the same percentage that the Final Level of the lower performing Index is below its Opening Level.
If the Closing Levels of both Indices on any Measurement Date before the Final Measurement Date are at least equal to their respective Opening Levels, the Plan will kick out, i.e. mature early, and make a gross investment return for each year that the Plan has been in force.
The first Measurement Date will be on 16 November 2020 one year after the Start Date.
If the Plan matures early on a Measurement Date, the gross investment return payable will be: 18% at Measurement Date 1; 21.50% at Measurement Date 2; 25% at Measurement Date 3; 28.50% at Measurement Date 4; 32% at Measurement Date 5; 35.50% at Measurement Date 6; 39% at Measurement Date 7; 42.50% at Measurement Date 8; 46% at Measurement Date 9; 49.50% at Measurement Date 10; 53% at Measurement Date 11; 56.50% at Measurement Date 12, 60% at Measurement Date 13 and 63.50% at Measurement Date 14.
If the Closing Levels of both Indices on any Measurement Date before the Final Measurement Date are below their respective Opening Levels, no investment return will be made, and the Plan will remain in force.
If the Final Levels of both Indices are at least equal to their respective Opening Levels, the Plan will make an investment return at the Maturity Date equal to 67% of the money invested in the Plan. If the Final Level of one or both Indices is below its respective Opening Level, no investment return will be payable at the Maturity Date.
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.
It is our understanding 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.
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.