Mariana FTSE 100 Defensive Income Memory Deposit Plan - September 2024
The Mariana FTSE 100 Defensive Income Memory Deposit Plan - September 2024 is a 6-years, one-week investment offering a Potential Income of 5% per year providing the Closing Price of the Underlying is at or above 90% of the Start Level on an annual Observation Date.
- Market / index link: FTSE 100 Index
- Counterparty: Royal Bank of Canada
- Investment term: 6 years, 1 week
- Kick-out / Early maturity: No
- Barrier type: Not Applicable (Structured Deposit)
- Barrier level: N/A
The closing date for ISA transfer applications is 13 August 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 30 August 2024 for bank transfer applications.
The closing date for applications by cheque is 28 August 2024
The closing date for ISA transfer applications is 13 August 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
The Mariana FTSE 100 Defensive Income Memory Deposit Plan - September 2024 is a six year, one week Plan based on the performance of the FTSE 100 Index , the Underlying. The Plan is constructed to offer a Potential Income of 5% per year providing the Closing Price of the Underlying is at or above 90% of the Start Level on an annual Observation Date.
If the Closing Price of the Underlying is below 90% of the Start Level on a annual Observation Date, no income is paid for that year. However, unpaid income will be paid on a future payment date if the Closing Price of the Underlying is at or above the Income Trigger Level on a subsequent annual Observation Date (with memory feature).
You will only receive the annual Potential Income if the income criteria is fulfilled on an annual Observation Date. To note, if, on all of the Observation Dates the income criteria is not fulfilled, you will receive no Potential Income throughout the term of the Plan.
Initial Capital is returned in full on the Maturity payment Date regardless of the performance of the Underlying. The repayment of Initial Capital and the payment of any returns are subject to Counterparty Risk.
About Royal Bank of Canada: The Deposit Taker chosen for this Deposit Plan is Royal Bank of Canada. The Deposit Taker (also known as the Counterparty), is the institution with which your Initial Capital will be invested in the Structured Deposit described in this brochure.
Royal Bank of Canada
Royal Bank of Canada was selected as the Deposit Taker because it is one of the top 10 banks in the world by market capitalisation and is the largest financial institution in Canada. It has operations in 29 countries with approximately 92,000 employees.
You may lose all or part of your investment if Royal Bank of Canada collapses, becomes bankrupt or goes into liquidation and defaults on paying your Deposit Plan return and the repayment of the Initial Capital. The risk that Royal Bank of Canada collapses, becomes bankrupt or goes into liquidation is called Counterparty Risk.
Should Royal Bank of Canada collapse, become bankrupt or go into liquidation, you may be eligible for compensation under the Financial Services Compensation Scheme (FSCS). Further details in relation to compensation arrangements are set out in the section entitled ‘Where is my money and can I lose it?’.
The Deposit Plan is not endorsed, sponsored or otherwise promoted by Royal Bank of Canada or any of its affiliates. None of Royal Bank of Canada or its affiliates is responsible for the contents of this brochure and nothing in this document should be considered a representation or warranty by Royal Bank of Canada to any person regarding whether investing in the Deposit Plan is suitable or advisable for such a person. Neither Royal Bank of Canada, nor any of its affiliates,has provided advice, nor made any recommendation about investments or tax in relation to this Deposit Plan.
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.