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RBS UK Step-down Kickout Year 2+ Plan May 2013

The potential for early maturity and 7% gross per year

The RBS UK Step-down Kickout Year 2+ Plan May 2013 is a six year structured investment plan linked to the performance the FTSE 100 Index (‘the Index’).

The objective of the Plan is to deliver attractive fixed returns with the potential for early maturity dependent on the performance of the Index, even in a slightly falling market.

The Plan has a 6 year term, but offers the opportunity to mature early after years 2, 3, 4 or 5. If on any Early Valuation Date the Required Reference Level of the FTSE 100 Index is met, the Plan will mature early returning your original capital plus 7% gross for each year the plan has been active (not compounded). The Required Reference Levels are 97% of the Start Values of the Index at the end of Year 2, 94% at the end of Year 3, 91% at the end of Year 4, 88% at the end of Year 5, and 85% at the end of year 6.

Example – if the conditions were met at the end of Year 4 (i.e. the closing value of the Index on the 5th June 2017 was at least 91% of its starting value) the plan would provide an interest payment of 28% as well as a return of your capital.

If the Required Reference Level is not met then the plan will continue until the following year. If conditions are not met on any of the yearly Early Valuation Dates you will receive no growth returns and return of your capital may be at risk.

Capital may be at risk if the Plans fails to meet the Required Reference level on any of the Annual Observation Dates. In this case as long as the Index has not fallen by more than 50% from its Initial Level at any time during the term of the Plan, you will receive the full return of your capital. Capital will be lost if the Index has fallen by more than 50% and the Final Index Level is lower than the last Reference Level of 85%. In this situation your capital will be reduced by the same percentage that the Final Index Level is below the Initial Index Level, and you may lose some or all of your original investment amount.

The Plan is available for Stocks & Shares ISA, ISA Transfer, Direct Investment, as well as SIPP and SSAS pension investments. It is also available to businesses, charities and trusts.

Plan Details

  • Potential fixed payment of 7% for every year the Plan has been active
  • Capital at risk product*
  • Investment term - Up to 6 Years
  • Arrangement fee applies
  • Minimum single investment - £5,000
  • Maximum Stocks & Shares ISA investment - £11,520
  • ISA transfers accepted
  • No maximum total investment
  • Also available to businesses, charities and trusts
  • ISA transfer deadline: 16 May 2013
  • Direct investment and ISA deadline: 24 May 2013

*The return of your capital depends on the performance of the FTSE 100 Index and the ability of the counterparty (Royal Bank of Scotland Plc) to repay the monies.

Reduced arrangement fee: For investments of £100,000 or more into this plan, processed through Fair Investment Company, your arrangement fee will be reduced to 2% of your original investment.

Request a brochure by email and post:
RBS UK Step-down Kickout Year 2+ Plan May 2013
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This is a structured investment plan that is not capital protected and is not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the FTSE 100 Index.

There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term.

If you are at all unsure of the suitability of these types of investment, both in respect of their objectives and their risk profile, you should seek independent financial advice.

Fair Investment Company Limited is Authorised and Regulated by the Financial Services Authority.