Tempo FTSE 100 EWFD Long Kick-Out Plan December 2021 : Option 2

Tempo Structured Products

Tempo FTSE 100 EWFD Long Kick-Out Plan December 2021 : Option 2

A maximum ten year structured investment product, that offers the potential for early maturity from the end of year 3 with a fixed return of 8.35% per year, that accumulates (in other words, builds up) for each year that the plan runs and is paid if the FTSE 100 EWFD closes at or above a reducing percentage of the start level on one of the kick‑out anniversary dates (reducing from 100% on the third anniversary to 82.5% on the final anniversary). This investment is only available on an 'Advised' basis.

  • Potential return: 8.35 % per annum
  • Product type: Capital at Risk
  • Investment type: Kick-Out
  • Closing Date: 3 December 2021
  • ISA Transfer: 19 November 2021
  • Start Date: 10 December 2021
  • Maturity Date: 10 December 2031
  • Market / index link: FTSE 100 FDEW
  • Counterparty: Societe Generale
  • Investment term: 10 years (maximum)
  • Kick-out / Early maturity: Yes
  • Barrier type: End of term
  • Barrier level: 60%
Important: The closing date for applications by cheque is 1 December 2021 and by bank transfer is 3 December 2021.
The closing date for ISA transfer applications is 19 November 2021.

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

Complete the form and we will email you the requested literature and instructions on how to invest.

Select the application form you require

How to Invest?

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 Tempo FTSE 100 EWFD Long Kick-Out Plan: December 2021 (Option 2) is a maximum 10-year term product linked to the to the FTSE 100 EWFD, which offers three options, all of which are designed to generate a fixed level of return on one of the kick-out anniversary dates from the 3rd year.

The potential return of the plan depends on the level of the UK stock market, represented by the FTSE 100 EWFD.  Tempo have designed the plan so that if the level of the FTSE 100 EWFD triggers a ‘kick-out’ on one of the kick-out anniversary dates, the plan will pay the accumulated returns for each year that it has run together with the money invested, and automatically mature at this point.  

None of the options need the FTSE 100 EWFD to rise in order for the return to be paid. In addition, all of the options provide a defined level of protection at the end date, if it falls.

If the FTSE 100 EWFD closes at or above a reducing percentage of the start level on one of the kick-out anniversary dates (reducing from 100% on the third anniversary to 82.5% on the final anniversary), option 2 will generate a return of 8.35% for each year that the plan has run.

What are the risks of the plan? 

Both the potential kick-out returns of the plan and repaying the money invested are linked to the level of the FTSE 100 EWFD – and depend upon the financial stability of the Issuer and Counterparty Bank.

For all of the options, if the FTSE 100 EWFD is below the level needed on all of the kick-out anniversary dates and the end date, no return will be generated. In addition, repaying the money invested will depend on the level of the FTSE 100 EWFD on the end date:

If on the end date the FTSE 100 EWFD closes at or above 60% of the start level, money invested will be repaid in full (less any agreed adviser fees and withdrawals). 

If on the end date the FTSE 100 EWFD closes more than 40% below the start level, the amount of money repaid will be reduced by the amount that the FTSE 100 EWFD has fallen.  For example, if the FTSE 100 EWFD has fallen by 75%, the repayment of money will be reduced by 75%.

As with most structured products, the plan also depends on the financial stability of the Issuer and Counterparty Bank.  Both the potential returns of the plan and money invested are at risk if the Issuer and Counterparty Bank fail during the investment term.

 

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.