Rbs Note Strike 27th April

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  • 1. This information is intended for investment professionals only and should not be provided to or relied upon by retail investors in any circumstances. Investment Guide for Income Builder – December 2011 www.gilliat.co.uk Factsheet Phoenix Autocallable Notes – April 2012Potential returns of up to 12.25% gross p.a. linked to three well known stockmarket indices This document should be read in conjunction with the Issuer’s terms and Issuer’s base prospectus which is available to investment professionals at www.gilliat.co.ukAbout the Investment Opportunity:The Phoenix Autocallable Notes (the “Notes”) are linked to the performance of the FTSE® 100, S&P 500® and Hang Seng China EnterprisesIndices have the potential to pay an annual income or mature early from the end of year one. The Notes are designed for investors with aneutral/mildly bullish view of the Underlying Indices who are seeking potential defined returns in exchange for accepting the risk of capital lossif one or more of the stockmarket indices halve over the Note Term.Product Summary & Availability: Note Style Income with autocallable (or “kick out”) feature. Note Issuer The Royal Bank of Scotland plc Fitch Moody’s S&P Source: Bloomberg, 7 March 2012 A, Stable Outlook A2, Rating under review - down A, Stable Outlook Note Term 5 years with Early Maturity possible from end of first year. Underlying Indices Linked to the performance of the FTSE® 100, S&P 500® and Hang Seng China Enterprises Indices. Potential Income Paid if all Underlying Indices are equal to or above 70% of their Strike Levels on a Valuation Date. Payments Equivalent to: 11.5% gross GBP, 12.25% gross USD, 10.25% gross EUR. Potential Early Maturity The Note matures early if all the Underlying Indices are equal to or above their Strike Levels on a Valuation Payment Date, paying back capital plus a coupon payment of 11.5% gross GBP, 12.25% gross USD, 10.25% gross EUR. Capital Repayment Not capital protected. If any of the Underlying Indices are below 50% of their Strike Level on the Final Valuation Date or the Issuer fails (e.g. becomes insolvent, bankrupt or goes into administration) there will be a loss of capital. Strike Date and 27 April 2012 Subscription Close Date ISINs GBP – XS0727193103; USD – XS0727192808; EUR – XS0727186586Available until 27 April 2012 for investment via offshore portfolio bonds and fund platform arrangements; minimum subscription percounterparty is 100,000 EUR, USD 150,000 or GBP 100,000. The terms detailed in this factsheet are net of all product related fees and charges. Key Benefits Key Risks Offers the potential for an annual income or Early Maturity In the event that the Issuer fails, all capital may be lost and there depending on the level of the Underlying Indices. may be no Income Payments or Early Maturity Payment. No growth required in the Underlying Indices to achieve the Early If any of the Underlying Indices are below 50% of their Strike Maturity Payment and falls can still result in an Income Payment. Level on the Final Valuation Date, capital invested will be at risk. Capital is protected from market falls unless one or more of the The terms detailed in this document apply only if the Note is Underlying Indices are below 50% of their Strike Level on the held until maturity (or Early Maturity if applicable) and opting to Final Valuation Date. exit early may mean capital invested is substantially reduced. www.gilliat.co.uk Information correct as at 7 March 2012 1
  • 2. This information is intended for investment professionals only and should not be provided to or relied upon by retail investors in any circumstances. Factsheet – Phoenix Autocallable Notes – April 2012About the Underlyings: The FTSE® 100 Index The S&P 500® Index The Hang Seng China Enterprises Index The FTSE® 100 Index is a market The S&P 500® has been widely regarded capitalisation weighted index as the best single gauge of the large The Hang Seng China Enterprises Index is representing the performance of the cap U.S. equities market since the index a freefloat capitalization-weighted index 100 largest UK domiciled blue chip was first published in 1957. The index comprised of H-Shares listed on the Hong companies, which pass screening for includes 500 leading companies in Kong Stock Exchange and included in the size and liquidity and whose shares are leading industries of the U.S. economy, Hang Seng Mainland Composite Index. traded on the London Stock Exchange. capturing 75% coverage of U.S. equities. The base value of this index is 2000 as of The Index represents approximately Bloomberg Ticker: SPX <Index> Jan 3, 2000. This index replaced the old 85.2% of the UK’s market capitalisation HSCE index on Oct. 3, 2001. (as at 7 March 2012) and is often used Bloomberg Ticker: HSCEI <Index> as the basis for investment products, such as funds, derivatives and exchange traded funds. Bloomberg Ticker: UKX <Index>UnderlyingsFTSE® 100 (1984 to present) 8000 7000 6000 5000Level 4000 3000 2000 1000 0 1984 1988 1992 1996 2000 2004 2008 2012 DateS&P 500® (1984 to present) 1800 1600 1400 1200Level 1000 800 600 400 200 0 1984 1988 1992 1996 2000 2004 2008 2012 DateHang Seng China Enterprises Index (1993 to present) 25000 20000 15000 Level 10000 5000 Source: Bloomberg, 7 March 2012, price excluding dividends. Past performance is no guarantee or 0 1993 1996 2000 2004 2008 2012 indication of future performance. Date 2 Information correct as at 7 March 2012 www.gilliat.co.uk
  • 3. This information is intended for investment professionals only and should not be provided to or relied upon by retail investors in any circumstances. Factsheet – Phoenix Autocallable Notes – April 2012How the Notes Work: On the Strike Date Closing levels of the Underlying Indices are recorded to give the Strike Levels Early Maturity occurs. 100% of On each Valuation Date (at the end of years one, two, three and four): investment capital returned plus YES Are all of the Underlying Indices equal to or above their Strike Level? Early Maturity Payment of EM x initial investment NO IP indicates Income Payment for Are all of the Underlying Indices equal to or above 70% of their Strike Levels? the selected Note. EM indicates Early Maturity NO Yes Payment for the selected Note. The payment levels IP and EM No Income Payment is paid Income Payment of IP x initial are defined, for each currency, on investment is paid pages 1 and 4 of this Factsheet. Product continues to next Valuation Date On the Final Valuation Date, if Early Maturity has not occurred 100% of investment capital YES returned plus the last Income Are all of the Underlying Indices above 70% of their Strike Levels? Payment of IP x initial investment NO Investment capital is returned in Are all of the Underlying Indices above 50% of their Strike Levels? YES full (no Income Payment) NO Investment capital is reduced by the same percentage that the worst performing Underlying Index is below its Strike Levelwww.gilliat.co.uk Information correct as at 7 March 2012 3
  • 4. This information is intended for investment professionals only andshould not be provided to retail investors in any circumstances. Factsheet – Phoenix Autocallable Notes – April 2012 Product Information Note Type: Income with autocallable feature Issuer: The Royal Bank of Scotland plc Underlying Indices: FTSE® 100, S&P 500® and HSCEI Indices Term: Maximum of 5 years with Early Maturity possible from end of year one. Potential Income Payment Paid if all of the Underlying Indices are equal to or above 70% of their Strike Levels on a (IP): Valuation Date including the Final Valuation Date. 11.5% gross per annum GBP, 12.25% gross per annum USD, 10.25% gross per annum EUR. Any Income Payments will be paid 10 trading days after the relevant Valuation Date. Potential Early Maturity Paid if all of the Underlying Indices are equal to or above their Strike Levels on a Valuation Payment (EM): Date excluding the Final Valuation Date. 11.5% gross GBP, 12.25% gross USD, 10.25% gross EUR. Any Early Maturity Payment will be paid 10 trading days after the relevant Valutaion Date Strike Date and subscription 27 April 2012 Close Date: Strike Level: The closing level of each Underlying Index on the Strike Date. Valuation Date(s): The dates on which the closing levels of each Underlying Index are recorded to ascertain whether any Income Payment will be made and whether Early Maturity occurs. 29 April 2013 28 April 2014 27 April 2015 27 April 2016 Final Valuation Date Final Valuation Date: The final date on which the closing levels of the Underlying Indices are recorded. This is 27 April 2017 Final Maturity Date: If Note does not mature early, 5 May 2017 Linked to the performance of the Underlying Indices. If one or more of the Underlying Indices Capital Protection: are below 50% of their Strike Level on the Final Valuation Date, the amount of capital returned will be reduced by the same percentage. This feature does not protect investors from the credit risk of the Issuer. Currency: GBP/USD/EUR Issue Price: 100% ISINs: GBP XS0727193103, USD XS0727192808, EUR XS0727186586 It is possible for all capital to be lost and for no Income Payments or Early Maturity Payment to be made. Risks If on the Final Valuation Date any of the Underlying Indices are below 50% of their Strike Level, capital is at risk and some or all of the amount initially invested will be lost. Investors will be exposed to the credit risk of the Issuer. If the Issuer fails, investors may lose some or all of their initial investment and may not receive any Income Payments or Early Maturity Payment, regardless of how the Underlying Indices perform. The potential Income Payments or Early Maturity Payment and the return of capital are all linked to the performance of the Underlyings. These Notes are not listed on any stock exchange. Any secondary market provided by the Issuer is subject to change and may be stopped without notice. It may therefore not be possible to redeem the Notes prior to the Final Valuation Date. If the Notes are redeemed early, the amount returned may be significantly less than that originally invested. The Notes do not pay interest. The only form of returns is the potential Income Payments or Early Maturity Payment along with the return of capital invested. 4 Information correct as at 7 March 2012 www.gilliat.co.uk
  • 5. This information is intended for investment professionals only and should not be provided to retail investors in any circumstances. Investment Guide for Income BuilderNotes – April 2011 Factsheet – Phoenix Autocallable – December 2012Who are Gilliat Financial Solutions?Gilliat Financial Solutions are an independent specialist in the design and distribution of structured products and structureddeposits. Gilliat was launched in June 2009 as a trading name of Arbuthnot Latham, a private bank based in the City of Londonwhich can trace its name back to 1833. Arbuthnot Latham is authorised and regulated by the Financial Services Authority,number 143336.We are the only independent provider with the strength, support and stability of an established UK bank behind it. Thisindependence means we are not tied to a particular counterparty and can work with almost any bank which meets our strictselection criteria, resulting in highly competitive products. We pride ourselves not only on our innovative approach to productdesign, but also on the quality and diversity of our research. Research is pivotal to everything we do at Gilliat and we buildproducts based on these in depth studies and make the information we use freely and readily available to you.As a business, structured products and structured deposits are our sole focus. Our three directors have over 25 yearsexperience in the creation and distribution of these products and over 61 years in the wider financial services industry.Important Information:This document has been issued by Gilliat Financial Solutions (“Gilliat”), a trading name of Arbuthnot Latham & Co., Limited whoare authorised and regulated in the UK by the Financial Services Authority, number 143336.This document is not a term sheet and has been prepared solely for information purposes. It is not an offer or solicitationto buy or sell the Note and any investment decision should be made in conjunction with the Issuer’s final terms for the Noteand base prospectus. The information contained within is believed to be reliable, please note however that there may be adifference in the naming convention of certain defined terms between this document and the Issuer’s final terms of the Noteand base prospectus.This document is intended solely for investment professionals. Prior to any investment, advisers must ensure that investors fullyunderstand the potential risks and return of the transaction and have assessed its suitability for their client. Gilliat does not offerinvestment or tax advice. This document is reflective of the terms under which Gilliat believes an issuance of securities will bestructured. However, no assurance can be given that such issuance will in fact go ahead and the issuer is not obliged to issuesuch securities. This investment is not available to any “US persons” and must not be offered in the United States.This Note is not in any way sponsored, sold or promoted by any relevant stock market, relevant index, related exchange, indexsponsor or investment fund provider, who make no warranty or representation whatsoever, express or implied, either as to theresults to be obtained from the use of the relevant stock market and/or the figure at which the relevant stock market, relevantindex, related exchange or investment fund level stands at any particular time on any particular day or otherwise. They shall notbe liable for any error in the relevant stock market, relevant index, related exchange, or relevant investment fund and shall notbe under any obligation to advise any person of any error therein.The issue price of the securities may not be an accurate reflection of the market value of such securities as at the strike date.The price at which the securities may be sold in secondary market transactions may be lower than the issue price and the issueprice may take into account, amongst other things, the distribution fee payable to any appointed distributor of the securitieswith respect to the offer and sale of the securities.Disclaimer: FTSE® 100This product is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”) or by The LondonStock Exchange Limited (the “Exchange”) or by The Financial Times Limited (“FT”) and neither FTSE® nor the Exchange nor FTmakes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use ofthe FTSE® 100 Index (“the Index”) and/or the figure at which the said Index stands at any particular time on any particular day orotherwise.www.gilliat.co.uk Information correct as at 7 March 2012 5
  • 6. This information is intended for investment professionals only andshould not be provided to retail investors in any circumstances. Factsheet – Phoenix Autocallable Notes – April 2012 The FTSE® 100 Index is compiled and calculated solely by FTSE®. However, neither FTSE® nor the Exchange nor FT shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FTSE® nor the Exchange nor FT shall be under any obligation to advise any person of any error therein. FTSE® and Footsie® are trademarks of London Stock Exchange Limited and the Financial Times Limited and are used by FTSE International Limited under licence. Source: FTSE.co.uk Disclaimer: S&P 500® “The Phoenix Autocallable Notes - April 2012 is not sponsored, endorsed, sold or promoted by Standard & Poor’s (“S&P”) or its third party licensors. Neither S&P nor its third party licensors makes any representation or warranty, express or implied, to the owners of the Phoenix Autocallable Notes - April 2012 or any member of the public regarding the advisability of investing in securities generally or in the Phoenix Autocallable Notes - April 2012 particularly or the ability of the S&P 500® (the “Index”) to track general stock market performance. S&P’s and its third party licensor’s only relationship to the Issuer is the licensing of certain trademarks and trade names of S&P and the third party licensors and of the Index which is determined, composed and calculated by S&P or its third party licensors without regard to the Issuer or Phoenix Autocallable Notes- April 2012. S&P and its third party licensors have no obligation to take the needs of the Issuer or the owners of the Phoenix Autocallable Notes - April 2012 into consideration in determining, composing or calculating the Index. Neither S&P nor its third party licensors is responsible for and has not participated in the determination of the prices and amount of the Phoenix Autocallable Notes- April 2012 or the timing of the issuance or sale of the Phoenix Autocallable Notes - April 2012 or in the determination or calculation of the equation by which the Phoenix Autocallable Notes - April 2012 is to be converted into cash. S&P has no obligation or liability in connection with the administration, marketing or trading of the Phoenix Autocallable Notes - April 2012. NEITHER S&P, ITS AFFILIATES NOR THEIR THIRD PARTY LICENSORS GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE INDEX OR ANY DATA INCLUDED THEREIN OR ANY COMMUNICATIONS, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATIONS (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P, ITS AFFILIATES AND THEIR THIRD PARTY LICENSORS SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS OR DELAYS THEREIN. S&P MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE MARKS, THE INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P, ITS AFFILIATES OR THEIR THIRD PARTY LICENSORS BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE. Source: www.standardandpoors.com September 2010 Gilliat Financial Solutions Tel: +44 (0)20 7012 2803 Arbuthnot House Fax: +44 (0)20 7012 2828 20 Ropemaker Street Email: internationalsales@gilliat.co.uk London EC2Y 9AR www.gilliat.co.uk © Gilliat Financial Solutions March 2012 All rights reserved. No part of this publication may be reproduced, copied or distributed, other than by registered independent financial advisors in the course of their business, without the prior permission in writing of Gilliat Financial Solutions. Approved and issued by Gilliat Financial Solutions. Gilliat Financial Solutions is a trading name of Arbuthnot Latham & Co., Limited who are authorised and regulated by the Financial Services Authority, number 143336. PANIG 4/2012 6 Information correct as at 7 March 2012 www.gilliat.co.uk