iDAD Societe Generale FTSE™ 100 Kick Out Plan – Issue 1

IDAD

iDAD Societe Generale FTSE™ 100 Kick Out Plan – Issue 1

This is a capital at risk investment plan with a term up to 5-years 1-week offering potential returns of 8.50% p.a. if the FTSE 100 is at or above 100% of Initial Level at the Observation Dates. This plan is only available on an 'Advised' basis.

  • Potential return: 8.5 % p.a. if the FTSE 100 is at or above 100% of Initial Level at the Observation Dates
  • Product type: Capital at Risk
  • Investment type: Auto-Call/Kick-Out
  • Closing Date: 11 March 2021
  • ISA Transfer: 25 February 2021
  • Start Date: 1 April 2021
  • Maturity Date: 25 March 2026
  • Market / index link: FTSE 100 Index
  • Counterparty: Societe Generale
  • Investment term: 5 -years 1-week
  • Kick-out / Early maturity: Yes
  • Barrier type: End of Term
  • Barrier level: 65%
  • Minimum Investment Amount: £10000
Important: The closing date for applications by cheque is 4 March 2021 and by bank transfer is 11 March 2021.
The closing date for ISA transfer applications is 25 February 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

This Plan provides investors with the opportunity to earn 8.50% p.a. if the Underlying market Index remains flat or rises. If the closing level of the Underlying Index on any early observation date (set out on page 3 of the brochure) before the Final Valuation Date is at least equal to or above the Kick Out Trigger Level, the Plan will kick out, i.e. mature early and make a gross investment return of 8.50% for each year that the Plan has been in force.

The first early observation date is the 18 March 2022, one year after the Plan Start Date. If the Plan has not matured early, and the closing level of the Underlying Index on the Final Valuation Date (the ‘Final Levels’) is at least equal to or above Kick Out Trigger Level, the Plan will provide an investment return at the Maturity Date equal to 142.50% made up of 100% of your investment plus a 42.50% return, (5 x8.50%) of the money you invested.

Capital Protection Barrier

At the final observation date, if the Underlying Index is at or above 65% of its Initial Level, then full capital is returned. Otherwise, if the Underlying is below 65% of its Initial Level, your capital will be at risk. The capital will be reduced by 0.10% for each day the Index has closed below the 65% barrier during the life of the Plan. For example, if the Underlying has fallen below 65% of its Initial Level for 50 days during the life of the Plan, 5% of capital will be deducted from the initial investment (0.10% x 50 days = 5%).  A full capital loss may be sustained if the Underlying Index is below the Capital Protection Barrier for 1000 days or more.

What is the aim of using a daily Capital Protection Barrier?

The aim of the daily Capital Protection Barrier is to reduce the risk of a capital loss being sustained based on one observation date only (i.e. at maturity). Any capital loss will instead be accrued based on the number of days the Underlying Index closes below the Capital Protection Barrier. The goal of such a feature is to prevent significant losses occurring due to one off large drops, when in fact the investors general view of the Underlying Index may have been correct during most of the Plan's life.

What else should be considered with a daily Capital Protection Barrier?

The capital loss you might incur at maturity will be accrued throughout the life of the Plan. The longer the Underlying Index remains below the Capital Protection Barrier the greater the capital loss at maturity.

A capital loss will be sustained at maturity if the Underlying Index is below the defined Capital Protection Barrier at maturity.

The size of the capital loss will be determined by the number of days the Underlying index has been below the Capital Protection Barrier during the Plan’s life.

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.