Mariana 5 Year Capital Protected Recallable Plan - June 2024
The Mariana 5 Year Capital Protected Recallable Plan - June 2024 is a Capital Protected Issuer Callable Plan with an investment term of up to 5 years, 2 weeks offering a potential return of 5.20% for each year the Plan runs if it is called early by the issuer.
- Market / index link: N/A
- Counterparty: Citigroup Global Markets Ltd
- Investment term: 5 -years, 2-weeks
- Kick-out / Early maturity: No
- Barrier type: Capital Protected
- Barrier level: 0%
The closing date for ISA transfer applications is 14 May 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
How to Invest?
Applications for the Plan must be submitted via Best Price Financial Services and received by 5pm on 31 May 2024 for bank transfer applications.
The closing date for applications by cheque is 29 May 2024
The closing date for ISA transfer applications is 14 May 2024.
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
SA13 2PS
Further Information
This is a capital protected issuer callable Plan. It runs for a maximum of 5 years and pays a potential return of 5.20% for each year the Plan runs if it is called early by the issuer. If this does not occur and the Plan runs to maturity, the Plan will generate a fixed return of 26%. The Plan is not linked to the performance of any Underlying. The Plan can be redeemed by the Issuer at it’s own discretion on any one of the annual Issuer Callable Observation dates from the end of the second year. If redeemed, Initial Capital is returned in full together with a coupon of 5.20% p.a..
If the Plan runs to maturity, Initial Capital is returned in full on the Maturity Payment Date together with a fixed return of 26%.
The Counterparty chosen for this Plan is Citigroup Global Markets Limited (CGML), Citigroup Global Markets Funding Luxembourg S.C.A, an affiliate of CGML, is the issuer of the underlying investments that are purchased on your behalf with the money you have invested. The investments are constructed to generate the terms described in this Brochure.
CGML
CGML is Citi’s international broker-dealer and is headquartered in London.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
More information on Citi can be found on their website www.citigroup.com or by requesting a copy of their prospectus from Mariana.
The prospectus contains information and contractual terms for the securities issued by Citigroup Global Markets Funding Luxembourg S.C.A. CGML acts as Guarantor of the securities issued by Citigroup Global Markets Funding Luxembourg S.C.A, which means that CGML will make the payments under the securities if Citigroup Global Markets Funding Luxembourg S.C.A is unable to fulfil its payment obligations. You may lose part and up to all your investment if CGML goes into liquidation and defaults on paying your Plan return and the repayment of your Initial Capital. The risk that CGML goes into liquidation is called Counterparty Risk.
Securities issued by Citigroup Global Markets Funding Luxembourg S.C.A and CGML are not covered by the Financial Services Compensation Scheme (FSCS). Therefore if the Issuer and/or the Guarantor become insolvent you would not be covered by the FSCS.
The Plan is not endorsed, sponsored or otherwise promoted by Citi or any of its affiliates. None of Citi or its affiliates are responsible for the contents of this brochure and nothing in this document should be considered a representation or warranty by Citi to any person regarding whether investing in the product is suitable or advisable for such a person. Neither Citi, nor any of its affiliates, has provided advice, or made any recommendation about investments or tax in relation to this product.
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.