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Risks & Commitments

Structured Products

In addition to the risks shown below, we recommend you read carefully the section entitled “risk factors” in the Key Features Document and Brochures provided which highlight any possible disadvantages of affecting the plan.

  • Any “asset backed” investment should be considered for the medium to long-term and should not be entered into if you envisage withdrawing your capital before this time.
  • For a full explanation of the charges and how they affect your plan, please refer to the Key Features Documents.
  • The levels and bases of taxation and reliefs from taxation may change at any time and the value and availability of any tax reliefs depends on individual circumstances.
  • Your circumstances may change, which may force you to sell your investment early. This may result in you getting back less than you originally invested.
  • Any growth or income produced by this investment is ultimately linked to the performance of the underlying index, equities, or basket of commodities which might turn out to be disappointing over the selected period.
  • Past performance of any linked index, equity or commodity should not be seen as an indication of future performance.
  • The guarantees associated with this type of investment have an associated cost which will be reflected in the overall return achieved, compared to Non-Structured unit linked products where the returns achieved will be directly related to the performance of the underlying investments.
  • The tax position on maturity might not be advantageous to you at the time.
  • If you redeem your deposit before the end of the stated terms, you may get back less than the amount you originally deposited.
  • Over the investment term, inflation will reduce the real value of any proceeds received on maturity.
  • If the institution issuing the underlying securities of the Plan were to fail (e.g. become insolvent), you could lose some or all of your investment. As with all similar structured investments (not Structured Deposits), in the event of Issuer insolvency you will not have recourse to the Financial Services Compensation Scheme. It is therefore the investor who faces these risks.
  • Whilst capital is protected irrespective of the stock’s performance, this protection is still at risk if the Counterparty / Issuer fails
  • The relevant index or indices can fall as well as rise, and past performance must not be seen as an indication of future performance.
  • The Plan is designed to provide you with a fixed level of return. In order to achieve this level of return, your Capital will be put at risk.
  • If the relevant index or indices have fallen to below the pre-determined safety levels you may lose some or all of your investment.
  • There is no direct investment in the shares of the index or indices relevant to the plan and it will not receive dividends from the participating companies as such the returns could be lower than if you invested directly in the individual shares of companies making up the Indices.
  • The Plan is not the same as a deposit account. A deposit account is considered a relatively safe way to invest and normally allows you ready access to your money. The downside ‘currently’ is the very low returns on offer, however your total return could be lower than you would have received if you left your funds in a deposit account.

Some of the key Risks

  • Deemed by the FCA as a higher risk investment
  • Investment in Structured Products carries a high degree of risk. Potential investors must, therefore, refer to the Risk section of the product Brochure and seek their own professional advice on the commercial and tax consequences of investing in a Structured Product
  • Returns from Structured Products are highly unpredictable, past performance is not a guide to future performance and any anticipated returns may not be a reliable indicator of future performance. The value of an investment may go down as well as up and an investor may not get back the full amount invested
  • Investors’ post tax returns are dependent on their marginal tax rates, which may vary from year to year. Furthermore, tax legislation is liable to change without notice and this can impact on the tax efficiencies and benefits which in turn can impact on investor returns
  • long-term investments (5-10 years)
  • Risk of liquidity
  • No guarantee of success
  • Speculative in nature
  • Tax benefits and allowances may change from time to time and are not guaranteed
  • Tax treatment is dependent on individual circumstances and may be subject to change in the future
  • Past performance is not a guide to future performance and may not be repeated
  • The value of shares can go down as well as up and you may not get back the full amount invested

Current Issues


Find out more about compensation arrangements from the Financial Services Compensation Scheme.

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