The FTSE Income Plan provides investors with the opportunity to receive annual income payments at competitive rates. The Plan is designed to provide investors with a higher level of annual income than bank and building society deposits if they are willing to accept a risk to their capital.

This offer closed on 27 April 2010.

Two investment options with different rates of income are available. The Plan will run for a term of 5 years and 2 weeks (the Term). Repayment of your original investment at the end of the Term is subject to the performance of the FTSE 100 Index (the Index) during the Term. The potential income payments from the Plan are only available to you by placing the money you invest at risk.

Key dates

Close Date for 2009/2010 ISA applications: 1 April 2010
Close date for ISA transfer applications: 16 April 2010
Offer Close Date: 27 April 2010
Plan maturity Date: 14 May 2015
Term: 5 years and 2 weeks
Index: FTSE 100
Date of the Initial Index Level 30 April 2010
Date of the Final Index Level 30 April 2015
Investment Option 1:
Fixed Income		 5 annual income payments of 5.80% of your original investment, regardless of the performance of the Index
Investment Option 2:
Conditional Income		 Annual income payments of 6.50% of your original investment, subject to the performance of the Index. All future income payments will cease if the closing level of the Index on any day is lower than 50% of its closing level on 30 April 2010 (the Initial Index Level)
Income payments: For both options, income is paid gross on a yearly basis and cannot be re-invested.
Repayment of Capital:
  • The amount that you will be repaid at maturity depends on the performance of the Index from 30 April 2010 to 30 April 2015 (the Index Period).
  • If the closing level of the Index on any day during the Index Period is at a level lower than 50% of the Initial Index Level, and the closing level of the Index on 30 April 2015 (the Final Index Level) is below the Initial Index Level, your capital repayment will be reduced. In this case, your capital repayment will be reduced by the percentage amount by which the Final Index Level is lower than the Initial Index Level.
  • However, you will be repaid your original investment in full at maturity if the closing level of the Index on each day during the Index Period is at a level equal to or higher than 50% of the Initial Index Level; or in any case if the Final Index Level is equal to or higher than the Initial Index Level. This calculation of the repayment of capital applies only at maturity and assumes that your original investment will remain invested in the Plan for the whole of the Term. You should note that in no circumstances will the capital repaid on maturity exceed your original investment.
Investors: The Plan is eligible for investment directly and via ISA, SIP and SSAS arrangements. The Plan is eligible for ISA applications for both the 2009/2010 and the 2010/2011 tax years.
Taxation:
Investment via an ISA		 Investments via an ISA are not subject to either CGT or income tax. However, please note that any interest earned on cash held in the ISA, either before the offer close date if you invested early or after maturity, will be subject to the flat rate charge of 20%.
Taxation:
Direct investment		 Based on current legislation annual income payments should be treated as income for UK resident individuals. Payments from the Plan will be made gross of tax and it is your responsibility to declare this income on your tax return (as well as any other income made in the same tax year) and pay any income tax due directly to the HMRC.
Taxation:
Investments via SIPP, SSAS, Trustee or Company		 Investments via SIPP, SSAS, or other Trustee or Company Investors should consult their tax adviser to determine how any income payments will be treated for tax purposes before investing.
Plan Manager: Meteor Asset Management Limited. Meteor is authorised and regulated by the Financial Services Authority.
The Counterparty: UBS AG, London Branch, part of UBS Group. UBS AG is regulated by the FSA in the United Kingdom in the conduct of its investment business, and currently has a Standard & Poor’s long term credit rating of A+. The Counterparty is the issuer of the Instruments held by the Plan.

Please note that:

  • an investment in the Plan is a capital-at-risk investment;
  • the return from the Plan depends on the performance of the Index and is subject to counterparty risks; and
  • the basis for calculating Plan returns and partial capital protection assumes that investors remain invested for the entire Term. An investor making an early withdrawal from the Plan may receive less than his/her original investment.

Philipp Graf
T: +44 (0)20 3037 2048
E: Philipp.Graf@macquarie.com

Ken Lewis
T: +44 (0)20 3037 2046
E: Ken.Lewis@macquarie.com

Brendan Scarf
T: +44 (0)20 3037 2014
E: Brendan.Scarf@macquarie.com

Hugh Baggie
T: +44 (0)20 3037 2859
E: Hugh.Baggie@macquarie.com

Literature order
T: 0800 089 0206
F: 0800 089 0306
E: Macquarie@talismangroup.co.uk

Other than Macquarie Bank Limited ABN 46 008 583 542 (MBL), any Macquarie Group entity noted on this page is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). That entity's obligations do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.

Macquarie Bank International Limited is incorporated and registered as a private limited company in England and Wales with company number 06309906. Its registered office is located at Level 25, CityPoint, 1 Ropemaker Street, London, EC2Y 9HD. Macquarie Bank International Limited is authorised and regulated by the Financial Services Authority (Firm No. 471080).