FTSE/S&P 500 Defensive Income Plan 1 Santander UK option
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Structured Products FTSE/S&P 500 Defensive Income Plan 1 Santander UK option Quarterly income payments of 1.5% over the 7 year term if both the FTSE 100 and S&P 500 are higher than 62.5% of their starting levels. Potential for maturity at the end of each quarter from the end of year 2 onwards, if both the FTSE 100 and S&P 500 are above 105% of their starting levels. If the Plan runs for the full 7 years and either the FTSE 100 and S&P 500 finish lower than 60% of their starting levels, you will lose some or all of your initial investment. Limited offer ends: 21 March 2018. Issuer of Securities: Santander UK plc Plan Manager: Investec Bank plc EIGHT TIMES Award 2010-2017
FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
This brochure has been prepared by Investec Structured Products which is a trading name of Investec Bank plc.
This Plan is provided and administered by Investec Bank plc, Investec Bank plc is the Plan Manager. The Securities
underlying this Plan are issued by Santander UK plc.
About Investec
This brochure has been prepared by Investec Structured Products which is a trading name of Investec Bank plc,
which is part of the Investec group of companies.
Investec (comprising Investec Limited and Investec plc) is an international specialist bank and asset manager that
provides a diverse range of financial products and services to a select client base in three principal markets, the UK
and Europe, South Africa and Asia/Australia as well as certain other countries. The group was established in 1974
and currently has approximately 9,900 employees.
Investec focuses on delivering distinctive profitable solutions for its clients in three core areas of activity namely,
Asset Management, Wealth & Investment and Specialist Banking.
Investec sponsors the Investec Derby Festival, the England & GB Women’s Hockey teams, the Investec Rugby
Championship and Investec Super Rugby in New Zealand. We are also proud to support Investec Opera Holland Park
and the National Gardens Scheme.
For more information on Investec speak to your financial adviser or visit www.investecstructuredproducts.com
About Santander UK
Santander UK is a leading financial services provider that offers a wide range of personal and commercial financial
products and services in the UK. The bank serves around 14 million active customers through a branch network and
regional Corporate Business Centres. They operate primarily in the UK, are regulated by the UK Prudential Regulation
Authority and the Financial Conduct Authority.
For more information on Santander UK, visit www.santander.co.uk/uk
Important information
This document is not a prospectus, but an advertisement, and investors should not subscribe for any investment
in the Plan except on the basis of information in the Key Information Document, the Santander UK plc Notes and
Certificates Programme, dated 5 December 2017 and the related Final Terms. Copies of the Base Prospectus
and any Base Prospectus Supplements can be obtained upon request from Santander UK plc,
2 Triton Square, London NW1 3AN, via the website www.santander.co.uk/uk or from your financial adviser.
2FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
Key events and dates Contents
Offer period Key events and dates 3
ISA transfers:
20 February 2018 to 1 March 2018 How can I contact you?3
Direct investments and ISAs: What is the aim of the Plan? 4
20 February 2018 to 21 March 2018 Your commitment 4
Plan dates
Plan overview 4
Start Date: 29 March 2018
Final Maturity Date: 31 March 2025 What are the risks of the investment? 5
First Potential Income
How does the Plan work? 6
Payment Date: 6 July 2018
First Kick-Out Date: 30 March 2020 Examples of income payments that you may receive 8
ISIN code Examples of what you might get back at the
XS1772839160 end of the Plan Term 9
Plan Manager Are there any compensation arrangements
Investec Bank plc in place? 10
Issuer Is this investment right for you? 10
Santander UK plc
How to invest 11
How can I contact you? Ways to invest 11
Your questions answered 12
As you have a financial adviser please continue
to use them as your first point of contact. Terms and Conditions 19
Alternatively, you can write to us at: Definitions19
Investec Structured Products,
PO Box 914, Newport NP20 9PE.
You can also contact us by telephone
on 0344 892 0942. Or visit our website:
www.investecstructuredproducts.com
Terms in this brochure beginning with a capital letter, unless otherwise defined, have the meanings given to them in the
Definitions appearing on page 19 of this brochure. All income payments, unless stated otherwise, are gross.
3FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
What is the aim of the Plan?
The aim is to provide regular income payments and to return your initial investment after 7 years,
or earlier if the Plan matures early.
Your commitment
You must be able to commit a sum of at least £3,000 for the full 7 years.
Plan overview
This Plan is designed to make income payments of:
›› .5% per quarter if both the FTSE 100 and S&P 500 are higher than 62.5% of their starting levels on each
1
Quarterly Anniversary Date.
›› If at the end of any quarter from the end of year 2 onwards, both the FTSE 100 and S&P 500 are higher than 105%
of their starting levels the Plan will mature returning your initial investment.
However, if the Plan runs for the full 7 years and at the end of year 7, either the FTSE 100 or S&P 500 finish
lower than 60% of their respective starting levels, your initial investment will be reduced by 1% for every 1%
fall in the worst performing index at the end of the Plan Term.
For further details on how we calculate your returns, please see ‘How does the Plan work?’ on page 6.
4FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
What are the risks of the investment?
›› our initial investment is at risk. If the Plan runs for the full 7 years and either the FTSE 100 or S&P 500 finishes
Y
below 60% of their respective starting levels, your initial investment will be reduced by 1% for every 1% fall in the
worst performing index.
›› he FTSE 100 and S&P 500 move independently of one another and the performance of the Plan is linked to the worst
T
performing of these two indices. Therefore there could be an instance where one index finishes higher but one index
finishes lower than 60% of its starting level. This will result in a reduction of your initial investment.
›› ou may not receive some or any income payments. If either the FTSE 100 or S&P 500 are equal to or lower
Y
than 62.5% of their respective starting levels on a Quarterly Anniversary Date, no income payment will be made
for that quarter.
›› his Plan is designed to be held for the full Plan Term. If you need to redeem your investment before the
T
end of the Plan Term, Investec as Plan Manager will request a redemption price for the Securities from the Issuer,
however there is no guarantee that the Issuer will provide a redemption price to facilitate the early redemption of
your investment.
›› fter the Start Date, if the Issuer fails or becomes insolvent (i.e. goes bankrupt or similar), you could lose some or
A
all of your money.
›› rior to the Start Date and after the Final Maturity Date, your money will be held by Investec as banker and not as
P
trustee under the Client Money rules. If Investec goes bankrupt or similar, you could lose some or all of your money.
›› Inflation will reduce what you could buy in the future.
›› The tax treatment of the Plan could change at any time.
5FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
How does the Plan work?
Income
The Initial Index Levels are recorded at the start of the Plan and these are the closing levels of the FTSE 100 and
S&P 500 on 29 March 2018.
Initial Index Levels
The closing levels of the FTSE 100 and S&P 500 on 29 March 2018
On any Quarterly Anniversary Date, if both Payment Index Levels of the FTSE 100 and S&P 500 are higher than 62.5%
of their Initial Index Levels you will receive an income payment of 1.5%.
If either Payment Index Level is equal to or lower than 62.5% of the respective Initial Index Level, no income payment
will be made for that quarter.
Payment Index Levels
The closing levels of the FTSE 100 and S&P 500 on the relevant Quarterly Anniversary Date
Any payment will be made within 6 Banking Days of the relevant Quarterly Anniversary Date.
Please note: Income payments will be paid gross and are expected to be liable to Income Tax. You may have to
account for any tax liability based on your own marginal rate of Income Tax.
6FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
How does the Plan work? continued
Early Maturity (Kick-Out)
If at the end of each quarter from the end of year 2 onwards, the Kick-Out Levels of both the FTSE 100 and S&P 500
are higher than 105% of their respective Initial Index Levels, the Plan will mature early (Kick-Out) and you will receive
back your initial investment. In such event, you will also receive your income payment for that quarter.
The Kick-Out Levels are the closing levels of the FTSE 100 and S&P 500 on the relevant Kick-Out Date.
Kick-Out Levels
The Kick-Out Levels are the closing levels of the FTSE 100 and S&P 500 on the relevant Kick-Out Date
For clarity, if a Kick-Out occurs the Plan will mature early and no future income payments will be paid.
Maturity after 7 Years
If the Plan continues to the end of year 7, the closing levels of the FTSE 100 and S&P 500 are used to calculate the
Final Index Levels, as explained below.
Final Index Levels
The closing levels of the FTSE 100 and S&P 500 on 31 March 2025
›› If both the Final Index Levels are higher than or equal to 60% of their respective Initial Index Levels, you will receive
back your initial investment with no return.
›› If either Final Index Level is lower than 60% of their respective Initial Index Levels, you will receive back your initial
investment minus 1% for every 1% fall in the worst performing index (including partial percentages). For example,
if the Final Index Level of the FTSE 100 has fallen by 50% from the Initial Index Level and the Final Index Level of
the S&P 500 has fallen by 20% from its Initial Index Level, then your initial investment will be reduced by 50%.
7FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
Examples of income payments that you may receive
The table below shows examples of potential income payments, based upon an initial investment of £10,000 being
invested into the Plan. The exact return you receive and the frequency of income payments will be dependent on the
amount you invest and the performance of both the FTSE 100 and S&P 500 over the Plan Term.
Please note that the purpose of the table is to show the impact of certain changes in the FTSE 100 and/or S&P 500.
It does not show the likelihood of these changes actually happening. Please remember that you are not investing
directly in the FTSE 100 or S&P 500, therefore, regardless of how high the index rises, the maximum amount paid on
each Quarterly Anniversary Date for this Plan will be shown below.
Please note that you are not investing directly in the FTSE 100 or S&P 500.
Are both Payment Index Levels Are both Kick-Out Levels
Quarterly
higher than 62.5% of their higher than 105% of their Payment
Anniversary
respective Initial Index Level? respective Initial Index Level?
1 Yes N/A £150.00
2 Yes N/A £150.00
3 Yes N/A £150.00
4 No N/A £0.00
5 Yes N/A £150.00
6 Yes N/A £150.00
7 Yes N/A £150.00
8 Yes No £150.00
9 Yes No £150.00
10 No No £0.00
11 Yes No £150.00
12 Yes Yes £10,150.00
The above example shows the Plan paying some income payments and maturing early (Kicking Out) after the
12th quarter.
* On Quarterly Anniversary Dates 4 and 10, income payments are missed because at least one Payment Index Level is less than or equal to 62.5%
of its respective Initial Index Level.
** Both Kick-Out Levels are above 105% of their respective Initial Index Levels on Quarterly Anniversary Date 12, therefore the Plan Kicks-Out and
returns the initial investment of £10,000. The payment on Quarterly Anniversary Date 12 is the return of the £10,000 initial investment plus the last
income payment of £150.00.
Income payments will be paid gross and are expected to be liable to Income Tax. You may have to account for any tax
liability based on your own marginal rate of Income Tax.
8FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
Examples of what you might get back at the end of the Plan Term
The table below shows examples of maturity proceeds, excluding any income payments, based upon an initial
investment of £10,000 and assuming the Plan runs for the full 7 years. The exact return you receive will be dependent on
the amount you invest and the performance of both the FTSE 100 and S&P 500 over the Plan Term.
Where is the worst performing
Final Index Level in relation to Maturity Proceeds
its Initial Index Level?
75% higher £10,000
45% higher £10,000
15% higher £10,000
No change £10,000
15% lower £10,000
39% lower £10,000
40% lower £10,000
41% lower £5,900
75% lower £2,500
Please note that the purpose of the table is to show the impact of certain changes in the FTSE 100 and/or S&P 500.
It does not show the likelihood of these changes actually happening.
Please remember that you are not investing directly in the FTSE 100 or S&P 500, therefore, regardless of how high the
FTSE 100 or S&P 500 rises, the maximum amount paid at maturity for this Plan will be as shown above.
9FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
Are there any compensation arrangements in place?
Prior to the Start Date and after the Final Maturity Date: Your money is eligible for Financial Services
Compensation Scheme (FSCS) protection.
The FSCS can pay compensation to depositors if a bank is unable to meet its obligations, for example if it fails or
becomes insolvent.
Most depositors, including most individuals and businesses, are covered by the scheme.
In respect of deposits, an eligible depositor is entitled to claim up to £85,000. For joint accounts each account holder
is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the
maximum amount that could be claimed would be £85,000 each (making a total of £170,000). The £85,000 limit
relates to the combined amount in all the eligible depositor’s accounts with the bank, including their share of any joint
account, and not to each separate account.
After the Start Date: Your investment plan is not eligible for Financial Services Compensation Scheme (FSCS)
protection. If Santander UK plc (as issuer of the Securities) is unable to meet its obligations, for example if it fails
or becomes insolvent, it is unlikely that you would be covered by the Financial Services Compensation Scheme.
For more information on Securities please see ‘What are you investing in?’ on page 12.
For further information about the scheme please refer to the FSCS website, www.FSCS.org.uk,
or call 0800 678 1100.
Is this investment right for you?
This investment may be right for you if: This investment may not be right for you if:
›› ou are prepared to risk losing some or all of your
Y ›› You want a regular income via dividends.
initial investment. ›› ou are dependent on payments being made on
Y
›› ou are looking for a Plan where payments are made
Y a regular basis.
depending on the performance of stock markets. ›› ou may need immediate access to your money
Y
›› ou are looking for an investment linked to the
Y before maturity.
performance of stock markets. ›› You cannot commit to the full 7 year Plan Term.
›› ou do not need access to your money over the
Y ›› You want a guaranteed return on your investment.
next 7 years.
›› You want to add to your investment on a regular basis.
›› ou want a tax-efficient investment using your ISA
Y
allowance or via a SIPP/SSAS.
›› ou do not want to invest in a UK onshore asset that is
Y
10
subject to UK tax rules.
›› You have a minimum of £3,000 to invest.FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
Is this investment right for you? continued
This Plan has been designed for investors who are looking for a high level of income over a 7 year period, but can
accommodate receiving their money back before the end of the term. The frequency of income payments is not known
and investors should not be dependant on these income payments to meet living expenses. It is aimed at investors
who may be cash rich but income poor.
Investors will have a medium-low appetite for risk and are prepared to risk their capital in order to potentially receive a
higher level of income.
Investors will understand that both their return of capital and payment of their income are linked to the FTSE 100 and
S&P 500 and returns will be calculated based on the worst performing index.
How to invest
Applications for the Plan must be submitted via a financial adviser and received by 5pm on:
1 March 2018 for ISA transfers (funds transferred from another ISA provider must be received by 23 March 2018).
21 March 2018 for all investments including 2017/18 ISA investments.
Cheques should be made payable to ‘Investec Bank plc’. Bankers drafts or Building Society cheques must be made
payable to ‘Investec Bank plc reference (your name)’. Please note that we will not accept post dated cheques.
All investments are subject to our Plan minimum of £3,000 and maximum of £1,000,000.
Ways to invest
›› Direct investment (not via an ISA)
›› Stocks and shares ISA for 2017/18
›› ISA transfer
›› SIPP/SSAS pension arrangements
›› Trustee, corporate, charity and nominee investments
›› Joint holder
›› Gift for another
›› On behalf of a child
11FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
Your questions answered
Plan information apply. If the Issuer is subject to the exercise of certain
powers under such regimes (for instance, is the
Q: What are you investing in? subject of government intervention) you could lose
A: You are investing in a 7 year securities-based Plan. some or all of your money.
Your money will be used to buy Securities issued by
Santander UK plc. Securities are a type of debt Administrative information
issued by a bank. In effect you are lending money to Q: Where will my money be held before the
the Issuer for the duration of the Plan. The Securities Start Date?
are designed to generate the Plan returns linked to A: Prior to the Start Date your money will be held by us
the FTSE 100 and S&P 500 and the Issuer is legally as banker and not as trustee under the Client Money
obliged to pay to you the Plan returns. rules. This means that your money will be held by us,
Investec is the Plan Manager. collectively with the funds of other investors. If you
have agreed for a fee to be deducted from the
Q: What is the FTSE 100 Index? amount invested and paid to your financial adviser,
A: The FTSE 100 Index is a widely used benchmark this will also be held by us as banker until the date
for the UK stock market. The Index measures the it is paid. If Investec fails to meet its obligations,
performance of the shares of the 100 largest the Client Money distribution rules will not apply
companies traded on the London Stock Exchange. and so you will not be entitled to share in any
The FTSE 100 is an international index which distribution under the Client Money distribution rules.
includes HSBC, Vodafone, Royal Dutch Shell and You may lose all or part of your initial investment.
GlaxoSmithKline. The companies that comprise This arrangement will not impact on your rights to
the FTSE 100 derive more than two thirds of their seek compensation from the FSCS in the event
revenues from outside the UK and therefore provide of Investec’s insolvency. Further details of the
exposure to the world economy as well as the UK. FSCS and eligibility criteria are available at
www.fscs.org.uk
Q: What is the S&P 500 Index?
A: The S&P 500 is a gauge of large cap U.S. equities. Q: What happens if I change my mind?
The Index includes 500 leading companies in leading A: Shortly after we receive your investment, we will
industries of the U.S. economy, capturing send you a cancellation notice which provides
approximately 80% coverage of US equities. you with a 14 day period in which you can change
your mind. If you decide to cancel your Plan,
Q: What happens to my money if the Issuer fails or provided we receive your cancellation notice within
becomes insolvent? the 14 day cancellation period, we will return your
A: If the Issuer fails or becomes insolvent (i.e. goes initial investment without interest less any fee paid
bankrupt or similar), you could lose some or all of your to your financial adviser. You will need to discuss
money. There is no Collateral to protect against loss reclaiming any fee with your financial adviser. If you
of your investment. Additionally, the Issuer is an entity wish to terminate your investment in the Plan after
to which certain UK and European regulatory regimes the 14 day cancellation period, we will request a
12FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
redemption price from the Issuer, however there is Q: What happens if I cash in my investment early?
no guarantee that the Issuer will provide a redemption A: The Plan is designed to be held for the full term. If you
price to facilitate the early redemption of your need to cash in your investment early, we will request
investment. If a redemption is granted, the value a redemption price for the Securities from the Issuer,
received can vary and may be less than the original however there is no guarantee that they will provide a
investment amount especially in stressed market redemption price to facilitate the early redemption of
conditions. The value returned will be affected by the your investment.
level of the underlying index, market volatility, interest
rates and liquidity among other market variables. If a redemption is granted before the end of the Plan
The redemption value received can vary and may Term, you may get back less than the amount you
be less than the original investment amount especially originally invested.
in stressed market conditions. The value returned is The value of your Plan will be determined in
affected by the level of the underlying index, market accordance with the prevailing market rate at the
volatility, interest rates and liquidity among other time of receiving the redemption request, less any
market variables. associated selling costs and transfer taxes, including
If you are transferring an existing ISA to us, the stamp duty or stamp duty reserve tax to the extent
cancellation notice will be sent to you shortly after we applicable. We would need to receive an instruction
receive the proceeds from your previous ISA manager. from you in writing.
If you decide to cancel then you can choose to Further information on procedures for cashing in
transfer your ISA back to the original manager, your investment early is provided in the Terms
a new manager, or have the proceeds returned and Conditions.
to you as a cheque. In the latter event, you will lose Q: Are partial withdrawals allowed?
any favourable tax treatment associated with the ISA. A: The Plan is designed to be held until maturity however,
Please be aware that in the event you choose to cancel partial withdrawals or partial ISA transfers may be
your ISA transfer instructions, you will lose your ISA permitted subject to the agreement of the Issuer,
entitlement unless your previous ISA Manager has and subject to a minimum of £3,000 remaining
confirmed this can be returned and re-instated by them. invested in the Plan. Any returns at maturity will be
based on the amount remaining in the Plan.
If you wish to exercise your right to cancel simply
complete and return the cancellation notice or write Q: When will the income payments be made?
to us at the address given under ‘How can I contact A: Please see ‘Key Events and Dates’ on page 3 for the
you?’ on page 3. first potential payment date. Thereafter payments
potentially occur quarterly throughout the Plan Term
Q: What will happen if I invest before the
on the same date, or if that date is not a Banking Day,
closing date?
the next Banking Day.
A: No interest will be paid if we receive your cheque
and Application Form before the closing date.
13FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
Q: How will the payments be made? Plan maturity
A: Payments will be made into your bank account,
therefore you should ensure that your bank account Q: What happens at maturity?
details have been provided on the Application Form. A: You will have the option to cash in your Plan,
If your bank account details have not been provided, transfer it to an alternative investment, or to
payments cannot be made, and your money will be reinvest the proceeds into other products which
held in a zero interest account. may be available at that time from Investec Bank plc.
We will contact you shortly before the Plan matures.
Q: Can I get a copy of the Base Prospectus?
A: Yes, a copy of the approved Base Prospectus Until we receive your instructions we will hold the
dated 5 December 2017, any supplements to relevant maturity proceeds on deposit and no interest
the Base Prospectus and Final Terms in relation will be paid. Please note that such monies will be
to the Securities can be obtained from held by us as banker and not as trustee. If we have
www.santander.co.uk/uk or upon request received your written instructions you will receive
from Santander UK plc, 2 Triton Square, financial settlement within 10 working days of the
London NW1 3AN. Plan maturing. If we have not received your written
instructions at 6 months, we will return your money
Q: What happens if I die during the Plan Term? by cheque to the last address provided to us.
A: Single applicants: In the event of your death,
your estate can choose to cash in the Plan or Q: What happens to the ISA status of my investment
transfer ownership to a beneficiary. in the event of a Kick-Out or maturity?
A: If you wish to maintain the ISA status of your investment,
If the Plan is cashed in, we will pay the market value you could either transfer it to another ISA product
at date of receipt of all required documentation. offered by Investec Bank plc or you could transfer your
If your estate chooses to transfer ownership to investment to another ISA manager. If you do not wish
a beneficiary, the Plan will continue until maturity. to maintain the ISA status of your investment, you could
As any ISA tax status will be lost, the tax treatment invest in any other product offered by Investec Bank plc
of income payments may change. or cash in your investment.
In all cases the Plan will be administered in accordance In the event that we have not received your written
with the instructions from your personal representatives instructions 6 months after maturity we will return
and/or as part of probate/administration. your money by cheque to the last address provided
to us, at which point the ISA status of your investment
oint applicants: For Plans invested in the name of
J will be lost.
husband and wife, the Plan will transfer automatically
to the name of the surviving partner. For other joint Roles
applications, the Plan will be administered in Q: Who is the Plan Manager?
accordance with the instructions of your personal A: The Plan Manager is Investec Bank plc (Registered
representatives, and/or as part of probate/administration. No. 00489604 England), which is authorised by the
14FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
Prudential Regulation Authority and regulated by the rated by Moody’s. This means that Moody’s is of the
Financial Conduct Authority and the Prudential opinion that Investec Bank plc is subject to low credit
Regulation Authority. Investec Bank plc is registered risk and is considered to be upper-medium grade.
under Financial Services Register reference 172330.
Investec Bank plc has a credit rating of BBB+ with a
Q: Who is the Issuer? stable outlook (awarded 7 September 2017) as rated
A: The Issuer is Santander UK plc (Registered No. by Fitch. This means that Fitch is of the opinion that
2294747 England), which is authorised by the Investec Bank plc has a good credit quality and
Prudential Regulation Authority and regulated by the indicates that expectations of default risk are
Financial Conduct Authority and the Prudential currently low.
Regulation Authority. Santander Uk plc is registered
For more information on Investec Bank plc please
under Financial Services Register reference 106054.
visit: www.investec.com
Credit ratings Q: What is the relevance of credit ratings?
Q: What is Santander UK plc’s credit rating? A: Credit ratings are assigned by companies known
A: Santander UK plc has a credit rating of Aa3 with a as rating agencies and are reviewed regularly.
stable outlook (awarded 8 February 2017) as rated by They can go up or down at any point in response
Moody’s. This means that Moody’s is of the opinion to changes in the financial position of the institution
that Santander UK plc is subject to very low credit risk in question. Credit ratings are only one way to
and is considered to be of high quality. assess the likelihood that an institution will be able
to pay back any monies owed. Institutions with
Santander UK plc has a credit rating of A with a stable better credit ratings should be less likely to go
outlook (awarded 10 September 2017) as rated by bankrupt than institutions with worse credit ratings,
Fitch. This means that Fitch is of the opinion that although this has not necessarily been the case over
Santander UK plc has a strong capacity for payment the last few years. Ultimately, however remote the
of financial commitments and expectations of default likelihood of bankruptcy might be, the risk will always
risk are low. exist. To reduce this risk, we suggest that structured
Santander UK plc has a credit rating of A with a stable products are used as part of a broader portfolio
outlook (awarded 15 November 2017) as rated by and that investors diversify their structured product
S&P. This means that S&P is of the opinion that investments across a range of issuers.
Santander UK plc has a strong capacity to meet its
financial commitments.
Charges and fees
Q: What are the charges?
For more information on Santander UK plc please
Charges for advice: You may incur fees for the
A:
visit: www.santander.co.uk/uk
financial advice you receive.
Q: What is Investec Bank plc’s credit rating?
You can choose to pay these direct to your financial
A: Investec Bank plc has a credit rating of A2 with a
adviser, or we can deduct the fee from the amount
positive outlook (awarded 15 September 2017) as
15FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
you invest. Any agreed fee will be paid to your your jurisdiction. This investment is a UK onshore
financial adviser 11 working days after we process asset that is subject to UK tax rules. Assets bought
your application. Please discuss with your financial onshore will be subject to UK tax legislation.
adviser for more details. You should seek specialist tax advice before making
Other costs and charges: As Plan Manager we incur
any investment into this Plan.
costs and charges for administering and marketing the Q: How are income payments taxed (SIPP/SSAS,
Plan. These overall Service costs total 2.01% (£20.10). corporates and registered charities)?
The overall financial instruments cost is 0% (£0). This A: Any income payments will be paid gross.
information is based on an illustrative nominal amount of
Please seek your own advice as to how you should
£1,000 invested. We are paid a fee by Santander UK
treat them for tax purposes.
to cover these costs and charges and they have been
taken into account when setting the return for the Plan.
The above tax information is intended to be general in
For clarity no charges are taken away from your initial nature and your own position may vary based on your
investment or your potential maturity payment and the particular circumstances. Tax rules and your benefit from
potential return stated in this brochure will be made them may change at any time. You should seek advice
on your total initial investment. There are no annual from your financial or tax adviser if you are unsure of the
management charges, so any returns are based tax treatment of the product for your purposes, before
upon the full amount you invest into the Plan. you invest.
Tax
Q: How are income payments taxed (UK tax resident ISAs
individuals)? Q: How much can I invest in an ISA?
A: Direct investments: Any income payments made A: You can invest in this Plan using your ISA allowance
are expected to be liable to Income Tax. for 2017/18. The overall ISA limit for 2017/18 is
If you invest directly into the Plan, as the Securities £20,000.
are listed on the London Stock Exchange, income As long as you have not already used all or part
payments will be paid gross. You may have to of your cash ISA (this includes Help to Buy ISAs),
account for any tax liability based on your own
stocks and shares ISA, innovative finance ISA and
marginal rate of Income Tax.
Lifetime ISA allowances for the 2017/18 tax year,
ISA investments: Income payments held within ISAs
you can invest up to £20,000.
are not subject to tax, and therefore paid gross.
If you have already invested part of your ISA
Q: How are income payments taxed (non-UK tax allowance for the 2017/18 tax year, you can top
resident investors)? up and invest the difference between the amount
A: Any income payments will be paid gross. invested already and the £20,000 total ISA allowance
The tax treatment thereafter will depend on your for the 2017/18 tax year.
16 personal circumstances and the tax legislation inFTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
Please note that a Help to Buy ISA is a cash ISA and Q: Can I use my Additional Permitted Subscription
you can only add new money into one cash ISA in a (APS) with this Plan?
tax year. A: Unfortunately, we cannot accept APS requests
into our Plans. However, we are able to administer
Only one cash ISA (including Help to Buy ISA),
requests from ISA Managers who offer APS into
one stocks and shares ISA, one innovative finance
their products. For further details on APS please
ISA and one Lifetime ISA can be subscribed to in
visit www.hmrc.gov.uk
each tax year, as long as the combined amount does
not exceed the ISA allowance for that year. Q: What happens if my ISA transfer funds are
received after the transfer funds deadline of
To make an ISA investment into one of our Plans,
23 March 2018?
you need to be over 18 and a UK resident for tax
A: Regrettably, we are unable to accept transfer
purposes. An ISA investment can only be held in
funds received after the deadline, therefore they
your name.
will be returned to your original ISA Manager for
Q: Can I transfer any existing ISAs into this Plan? re-investment.
A: If you have other ISA investments you can transfer
them into this Plan and this will ensure that the ISA Financial Advisers
tax status of your investment will continue. Q: How much will any advice cost?
You can transfer as many existing ISAs as you like, A: You may need to pay your financial adviser a fee for
without affecting your annual ISA allowance. You can advising on and or arranging the sale of this Plan.
transfer your full current year subscriptions. If you are Your financial adviser will discuss and agree this fee
transferring your current tax year’s cash ISA this will with you before you invest.
now be regarded as a stocks and shares ISA for this Q: What support do you provide to financial advisers?
tax year. Therefore, you will still be able to subscribe A: We provide financial advisers with additional benefits
to a cash ISA in the current year, provided you have which are designed to enhance the quality of their
not exceeded the overall ISA limit of £20,000 for service to you. These benefits may include some
2017/18. or all of the following: training, seminars and
If you wish to transfer, you should check with your marketing materials.
existing ISA manager that this is permitted. They may Further details of any benefits received from us are
impose a charge for transferring. You should also be available on request from your financial adviser.
aware of the potential for the loss of income or growth
whilst the transfer is pending. Investor information
When we receive the transfer funds, we will set Q: To whom is this investment available?
up an individual Plan for each existing ISA that you A: This investment is available to:
transfer to us. (a) UK tax resident individuals: To invest in the Plan
on your behalf or on behalf of another person you
17FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
must be aged 18 or over. You must be resident in Alternatively, you can also write to us at:
the UK for tax purposes. Investec Structured Products,
PO Box 914, Newport NP20 9PE.
This product is not available to persons in the
U.S. or to a U.S. Person. You can also contact us by telephone on
0344 892 0942.
(b) UK corporates, charities and trustees.
Q: How do I complain?
Q: What is my customer category?
A: Any complaint about the sale of this Plan should
A: We will treat you as a Retail Client for the purposes
be made to your financial adviser. A complaint
of the FCA Rules. This means you will receive the
about any other aspect of this Plan should
highest level of regulatory protection available for
be made to Investec Structured Products,
complaints and compensation and receive information
PO Box 914, Newport NP20 9PE.
in a straightforward way. You may request to be treated
(Telephone no. 0344 892 0942).
as a Professional Client or Eligible Counterparty,
however, if you do so you will lose the protections If your complaint is not dealt with to your satisfaction
afforded to Retail Clients under the FCA Rules. you can complain to the Investment Division,
The Financial Ombudsman Service, Exchange Tower,
Q: How will you keep me informed?
London E14 9SR. Making a complaint will not
A: We will send you a written acknowledgement by the
prejudice your right to take legal proceedings.
end of the next working day following receipt of your
completed Application Form. After the start of the Q: What should I do if I have more questions?
investment, following the purchase of securities A: It is essential that you only invest in the Plan if you
for your investment, we will send you an opening fully understand the benefits and associated risks.
statement showing your holdings in your investment. Where you have unanswered questions you should
Thereafter, we will send you a statement annually. seek advice from a financial adviser or tax adviser in
your jurisdiction.
Q: How can I contact you?
A: As you have a financial adviser please continue
to use them as your first point of contact.
The information in this brochure does not constitute tax, legal or investment advice from Investec. You should think
carefully about the features and risks of this Plan and whether it suits your personal circumstances and attitude to risk
before deciding whether to invest. Investec does not offer advice or make any investment recommendations regarding
this Plan.
or unbiased general information about this type of product, please refer to the Money Advice Service website,
F
which was set up by the government, at www.moneyadviceservice.org.uk
18FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
Terms and Conditions
Definitions ‘Index Sponsor’ means, in relation to the FTSE 100, FTSE International
Limited, a UK incorporated company which calculates the FTSE 100
‘Application Form’ means the FTSE/S&P 500 Defensive Income and which is jointly owned by the London Stock Exchange and the
Plan 1 – Santander UK option application for an ISA and/or a Financial Times, and, in relation to the S&P 500, Standard & Poors
Direct investment. (S&P) a US financial services company which calculates the S&P 500
‘Banking Day’ means a day on which commercial banks in London are and is listed on the New York Stock Exchange and the National
open for general business (including dealings in foreign exchange and Association of Securities Dealers Automated Quotations.
foreign currency deposits). ‘Initial Index Level’ means the closing levels of the FTSE 100 and
‘Base Prospectus’ means the means the Santander UK plc Notes S&P 500 on the Start Date.
and Certificates Programme dated 5 December 2017 and any ‘Investec’ means Investec Bank plc.
supplements to it.
‘ISA’ is a scheme of investment managed in accordance with the
‘Business Day’ means any day on which each Exchange and each ISA Regulations by the ISA Manager under terms agreed between
Related Exchange is open for trading for its regular trading sessions. the ISA Manager and the investor (ISA terms and conditions).
‘Calculation Agent’ means Santander UK plc acting as An ISA is restricted to UK tax resident individuals only.
calculation agent. ‘ISA Manager’ means Investec Bank plc.
‘Client Money’ means the provisions of the FCA’s Client Assets ‘ISA Regulations’ means The Individual Savings Account Regulations
Sourcebook relating to client money. 1998, as amended or replaced from time to time.
‘Direct Account’ means any part of the FTSE/S&P 500 Defensive ‘Issuer’ means the issuer of Securities. The Issuer is Santander UK plc.
Income Plan 1 – Santander UK option, which is not an ISA.
‘Key Information Document’ means the Key Information Document
‘Exchange’ means The London Stock Exchange (LSE) and the which aims to provide clear, comparable and complete information
New York Stock Exchange (NYSE). about a product in a stand-alone, standardised document.
‘FCA’ means the Financial Conduct Authority. www.fca.org.uk ‘Kick-Out Dates’ means 30 March 2020, 29 June 2020,
‘FCA Handbook’ means the FCA Handbook of Rules and Guidance 29 September 2020, 29 December 2020, 29 March 2021,
as amended from time to time. 29 June 2021, 29 September 2021, 29 December 2021,
‘FCA Rules’ means the Rules included within the FCA Handbook issued 29 March 2022, 29 June 2022, 29 September 2022,
by the FCA. 29 December 2022, 29 March 2023, 29 June 2023,
29 September 2023, 29 December 2023, 2 April 2024, 1 July 2024,
‘Final Index Level’ means in relation to the FTSE 100, the closing 30 September 2024, 30 December 2024 and 31 March 2025.
level of the FTSE 100 on 31 March 2025 and, in relation to the
S&P 500, closing level of the S&P 500 on 31 March 2025. ‘Kick-Out Levels’ for each quarter means the closing levels of each of
the FTSE 100 and S&P 500 on the relevant Kick-Out Date.
‘Final Maturity Date’ means 31 March 2025.
‘Moody’s’ means Moody’s Investors Service Limited.
‘Fitch’ means Fitch Ratings.
‘Payment Index Level’ means the closing levels of each of the
‘FSCS’ means the Financial Services Compensation Scheme. FTSE 100 and S&P 500 on the relevant Quarterly Anniversary Date.
‘FTSE 100’ means the FTSE 100 Index. This product is not in any way ‘Plan’ means the FTSE/S&P 500 Defensive Income Plan 1 – Santander
sponsored, endorsed, sold or promoted by FTSE International Limited. UK option, comprising the Securities subscribed for through your ISA
‘HMRC’ means Her Majesty’s Revenue & Customs. and/or your Direct Account, as specified in your Application Form(s)
‘Index(es)’ means the FTSE 100 Index and the S&P 500 Index. and in the Key Information Document.
This product is not in any way sponsored, endorsed, sold or promoted
by FTSE International Limited or Standard & Poor’s. 19FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
‘Plan Manager’ means Investec Bank plc which is authorised by the ‘Service’ means service costs for the issue, administration, marketing
PRA and regulated by the FCA and the PRA and bound by its rules. and management of the Plan. This also incorporates the Investec Plan
‘Plan Objective’ means the objective of securing the return described Manager’s fee.
in the brochure and in the Key Information Document to which these ‘Start Date’ means 29 March 2018.
Terms and Conditions are attached. ‘U.S. Person’ means a U.S. Person as defined in regulation S under
‘Plan Term’ means the period from 29 March 2018 to 31 March 2025, the U.S. Securities Act of 1933, as amended, or as defined in the
both days inclusive. U.S. Internal Revenue Code of 1986, as amended.
‘PRA’ means the Prudential Regulation Authority. ‘Valuation Date’ means any day during the Plan Term where the Plan
www.bankofengland.co.uk/pra or the Securities are valued according to prevailing market conditions
‘PRA Handbook’ means the PRA Handbook of Rules and Guidance on that day.
as amended from time to time. The Plan Manager provides the FTSE/S&P 500 Defensive Income
‘PRA Rules’ means the Rules included within the PRA handbook Plan 1 – Santander UK option to you on the following Terms and
issued by the PRA. Conditions (of which the Application Form is a part):
‘Quarterly Anniversary Date’ means each of 29 June 2018, 1. Application
1 October 2018, 31 December 2018, 29 March 2019, 1 July 2019, 1.1 On the receipt of a duly completed Application Form and cheque
30 September 2019, 30 December 2019, 30 March 2020, (or banker’s draft, telegraphic transfer or any other means
29 June 2020, 29 September 2020, 29 December 2020,
acceptable to the Plan Manager) the Plan Manager may accept
29 March 2021, 29 June 2021, 29 September 2021,
your application subject to these Terms and Conditions. The Plan
29 December 2021, 29 March 2022, 29 June 2022,
Manager reserves the right to reject an application for any reason.
29 September 2022, 29 December 2022, 29 March 2023,
29 June 2023, 29 September 2023, 29 December 2023, 2 April 2024, 1.2 For the purposes of investment, investors in Jersey, Guernsey
1 July 2024, 30 September 2024, 30 December 2024 and and the Isle of Man can not subscribe to this Plan.
31 March 2025.
2. Cancellation Rights
‘Related Exchange’ means each exchange or quotation system where
2.1 The Plan Manager will give you the right to cancel your Plan
trading has a material effect (as determined by the Calculation Agent)
within 14 days of the Plan Manager’s acceptance of your
on the overall market for futures or options contracts relating to the
Application Form in accordance with the requirements of the
FTSE 100 and/or S&P 500, including any transferee or successor to
any such exchange or quotation system or any substitute exchange or FCA Handbook. You will be informed of your right to cancel in
quotation system to which trading in futures or options contracts the information that the Plan Manager sends you on receipt of
relating to the FTSE 100 and/or S&P 500 has temporarily relocated your application. Alternatively you can write to the Plan Manager at
(provided that the Calculation Agent has determined that there is Investec Structured Products, PO Box 914, Newport NP20 9PE.
comparable liquidity relative to the futures or options contracts relating If you do so, please provide your name and address and the
to the FTSE 100 and/or S&P 500 on such temporary substitute Plan number with clear instructions to cancel your investment.
exchange or quotation system as on the original Related Exchange). If the Plan Manager receives your cancellation notice within the
14 day cancellation period, your initial investment will be returned
‘S&P 500’ means the S&P 500 Index. This product is not in any way
sponsored, endorsed, sold or promoted by Standard & Poor’s. to you without interest and less any fee paid or due to your
financial adviser. If the Plan Manager receives your cancellation
‘Securities’ means the excluded indexed securities issued by
notice after the 14 day cancellation period, it will return to you,
Santander UK plc, which the Plan Manager purchases and holds on
without any interest, cash subscriptions that may be subject to
your behalf under the Plan.
a market value adjustment. The ability to cash in your investment
20FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
early should not be relied upon when choosing to invest in the 3.3 Where the Plans are held through a Direct Account your maturity
Plan. If you do cash in your investment early, we cannot return will be paid gross. You may have to account for any
guarantee what its value will be at that point and it may be less tax liability based on your own marginal rate of Income Tax.
than you originally invested. The redemption value received can This statement is based on current legislation, regulations and
vary and may be less than the original investment amount practice, all of which may change.
especially in stressed market conditions. The value returned is
4. ISA Accounts
affected by the level of the underlying index, market volatility,
interest rates and liquidity among other market variables. 4.1 You must subscribe to your ISA with your own cash or by transfer
Where you do not exercise your cancellation rights, the Plan of cash from an existing ISA. Transfers of cash from existing ISAs
will continue in line with the Terms and Conditions. will normally be arranged with the existing ISA managers. Once
the cash from the existing ISA has been transferred, your ISA will
Please be aware that in the event you choose to cancel your ISA
be subject to these Terms and Conditions. In respect of an ISA
transfer instructions, you will lose your ISA entitlement unless
transfer, a cancellation notice will be sent to you after the funds
your previous ISA Manager has confirmed this can be returned
are received from your previous ISA manager. If, following an ISA
and re-instated by them.
transfer you cancel your ISA, you may lose the favourable tax
2.2 If you cancel your Plan you will need to discuss reclaiming any treatment applicable. Please be aware that in the event you
related fees with your financial adviser. The Plan Manager is not choose to cancel your ISA transfer instructions, you will lose your
responsible for rebating any such fee. ISA entitlement unless your previous ISA Manager has confirmed
this can be returned and re-instated by them.
3. Direct Accounts
4.2 ‘ISAs’ can be either cash (which includes Help to Buy ISAs),
3.1 For Direct Account investments, when Investec Bank plc
stocks and shares, innovative finance or Lifetime ISAs. If you
receives your investment, prior to the Start Date we will hold
are subscribing for a stocks and shares ISA you must not have
such monies as banker and not as trustee under the Client
subscribed and may not subscribe to another stocks and shares
Money rules. This means that your money will be held by us,
ISA in the same tax year. Please note that the Plan Manager only
collectively with the funds of other investors. If you have agreed
offers the stocks and shares component in this investment.
for a fee to be deducted from the amount invested and paid
to your financial adviser, this will also be held by us as banker 4.3 You will immediately inform the Plan Manager in writing if you
until the date it is paid. If Investec fails to meet its obligations, cease to be a qualifying individual for the purposes of the ISA
the Client Money distribution rules will not apply and so you Regulations. The Plan Manager will notify you if, by reason of any
will not be entitled to share in any distribution under the Client failure to satisfy the provisions of the ISA Regulations, an ISA has,
Money distribution rules. You may lose all or part of your initial or will, become void.
investment. In the event of Investec’s insolvency your money will
4.4 The Plan Manager shall not accept any further amounts into an
not be protected and you must rely on your right of recourse to
ISA if the ISA Regulations no longer give you the right to invest
the FSCS. This arrangement will not impact on your rights to
in that ISA.
seek compensation from the FSCS in the event of Investec’s
insolvency. Further details of the FSCS and eligibility criteria 4.5 For ISA investments, when Investec Bank plc receives your
are available at www.fscs.org.uk investment, it will be held by us as banker and not as trustee in
an ISA designated account. This means that your money will be
3.2 Interest will not be paid on monies held within client accounts.
held by us, collectively with the funds of other investors. If you
For the avoidance of any doubt we will not pay interest on any
have agreed for a fee to be deducted from the amount invested
money held before the Start Date, after the Final Maturity Date or
and paid to your financial adviser, this will also be held by us
following any early withdrawal from the Plan.
21FTSE/S&P 500 Defensive Income Plan 1 – Santander UK option
as banker until the date it is paid. If Investec fails to meet its 6. Purchase of Plan Securities
obligations, the Client Money distribution rules will not apply and
6.1 On the Start Date, the Plan Manager will purchase Securities for
so you will not be entitled to share in any distribution under the
your Plan. The Securities will have been specifically structured to
Client Money distribution rules. You may lose all or part of your
match the Plan Objective. Securities are purchased on your
initial investment. In the event of Investec’s insolvency your
behalf and the Plan Manager will not be obliged to account for
money will not be protected and you must rely on your right of
any interest earned pending settlement. Investment in the Plan
recourse to the FSCS. This arrangement will not impact on your
will not commit your funds to any extent beyond the amount
rights to seek compensation from the FSCS in the event of
invested by you.
Investec’s insolvency. Further details of the FSCS and eligibility
criteria are available at www.fscs.org.uk 6.2 When the Plan Manager purchases and sells Securities in
accordance with these Terms and Conditions, it will always
4.6 Interest will not be paid on monies held within client accounts.
be acting as your agent, and not as the agent of the Issuer.
For the avoidance of any doubt no interest is payable on money
held before the Start Date, after the Final Maturity Date or 7. Conflict of Interest
following an early withdrawal from the Plan. 7.1 Occasions can arise where the Plan Manager, or one of
4.7 The proceeds of an ISA will not be subject to UK Tax. Also Tax its other clients, will have some form of interest in business
gains or losses on your ISA investment will be disregarded for the which is being transacted for the Plan. If this happens, or the
purposes of UK Tax. Plan Manager becomes aware that its interests or those of
one of its other clients conflict with your interests, you will
4.8 On your death, your ISA will lose its ISA status immediately and
be informed and asked for your written consent before any
your Plan will be dealt with in accordance with the instructions of
transaction is carried out. A copy of Investec Bank plc’s
your personal representatives. Your personal representatives can
conflicts policy can be obtained upon request from
sell your Securities or transfer them to your beneficiaries.
Investec Structured Products, PO Box 914, Newport
5. Maturity NP20 9PE (0344 892 0942). A summary can be found
at www.investec.co.uk/legal/uk/conflicts-of-interest.html
5.1 Under the terms of the Plan, the Plan will mature after the Final
Maturity Date. The Securities are structured so that the amount 8. Registration and Custody
you are due to receive from your Plan is in accordance with the
8.1 Your Securities will be registered in the name of Ferlim Nominees
Plan Objective. The Plan Manager will contact you to inform you
Limited, and documents of title, if any, will be kept in the custody of
of your options at maturity and any action required by you. The
the Nominee, who is not authorised under the Financial Services
Plan Manager may, at its discretion, repay maturity proceeds to
and Markets Act 2000. In the case of direct investments, you may,
you by transferring the funds into the bank or building society
however, request that the Plan Manager register your Securities
account from where the initial investment originated. Should this
with a custodian other than Ferlim Nominees Limited and that
occur you will be informed in writing by the Plan Manager.
documents of title, if any, be kept in the custody of such other
You should note that once the Plan has matured, we will hold custodian expressly nominated by you. The Plan Manager may,
the proceeds on deposit as banker and not as trustee for at its reasonable discretion, agree to such alternative custodial
up to 6 months. The proceeds will, therefore not be held in arrangements as it may determine from time to time without notice
accordance with the Client Money rules and interest will not to you. Such documents of title shall not be lent to any third party
be paid. If we have not received your written instructions at and money may not be borrowed on your behalf against the
6 months, we will return your money by cheque to the last security of those documents.
address provided to us. If your investment was an ISA
investment the ISA status will subsequently be lost.
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