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All investment involves risk and you could lose some or all of the money you invest.

The information given in this product review has been taken from the product terms and conditions, brochure, and other literature available from the product provider. No guarantee can be made to the accuracy of the information. You should therefore satisfy yourself as to the full terms and risks of any investment by reference to the relevant materials provided by the product provider. Please request these documents using the buttons on the left of the page.

Please Note: This product closed for investment on 28/02/2025

UK 7Y Quarterly Conditional Income Plan (MS37)

Arcus Partners UK 7Y Quarterly Conditional Income Plan (MS37)

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Overview:

Potential for gross quarterly income payments of 1.59%, provided the FTSE 100 Index closes no more than 20% below its Initial Index Level on any quarterly observation date. The plan will terminate early from the second anniversary onwards, if the FTSE 100 Index closes at or above its Initial Index Level on any quarterly observation date.

Product Type:

Capital at Risk

Investment Type:

Contingent Income

Product Index Link:

FTSE 100 Index

Potential FSCS Protection:

No

Capital at Risk Barrier Type:

End of Term only

Maximum Term:

7 years max

Barrier Level:

65% of Initial Index Level.

Downside:

1:1

Capital At Risk Barrier: (Subject To Counterparty Solvency)

65% of Initial Index Level, observed at the end of the term.

Initial (Strike) Index Level >>

Important Dates:

Closing Date ISA Transfers Strike Date Maturity Date
28/02/2025 21/02/2025 07/03/2025 22/03/2032
Closing Date
28/02/2025
ISA Transfers
21/02/2025
Strike Date
07/03/2025
Maturity Date
22/03/2032

Possible Early Maturity Dates:

08/03/2027 07/03/2028 07/03/2029 07/03/2030 07/03/2031

Counterparty:

Morgan Stanley

Please Note: The investment returns and the return of capital are dependent upon the counterparty meeting their obligations on time and in full. If the counterparty fails to meet their obligations you could lose some or all of your capital.

The credit ratings provided below can be a useful way to compare the credit risk associated with different Counterparties or Deposit Takers. Credit ratings are assigned by independent companies known as ratings agencies.

A-
A-

S&P Rating*

D R CC - CCC + - B + - BB + - BBB + - A + - AA + AAA
A+
A+

Fitch Rating*

D RD C CC CCC - B + - BB + - BBB + - A + - AA + AAA
A1
A1

Moody's Rating*

C Ca Caa B Ba Baa A Aa Aaa
3 2 1 3 2 1 3 2 1 3 2 1 3 2 1 3 2 1

Description

This maximum seven-year structured investment aims to generate gross quarterly income payments of 1.59%, which are dependent upon the performance of the FTSE 100 Index throughout the investment term. Income will be paid provided that on each of the quarterly observation dates the FTSE 100 Index closes at a level no more than 20% below its Initial Index Level. If on any quarterly observation date the Index does close more than 20% below its initial level, no income payment will be made in respect of that period.

The plan will terminate early if on any quarterly observation date from the second anniversary onwards the FTSE 100 Index closes at least 5% above its Initial Index Level, in which case investors' original capital will be returned in full in addition to a 1.59% income payment in respect of that quarter.

If the Final Index Level is no more than 35% lower, investors' capital will be returned in full. However, if the Final Index Level is more than 35% below its Initial Index Level, then investors will suffer a reduction to their invested capital equal to the percentage the Final Index Level is below its Initial Index Level.

For investments over £100,000 please contact us for preferential fees.

Contract Details

Initial Index Level:

The closing level of the Index on 7 March 2025.

Final Index Level:

The closing level of the Index on 8 March 2032.

Cash ISA Equity ISA Direct ISA Transfer SIPP **
Availability
Minimum Contribution*
 N/A £3,000 £3,000 £3,000 £3,000

*Note that minimum contributions exclude any applicable adviser charges

**The investment may also be available through third party SIPP Providers

Tax Treatment if held outside Tax Shelter:

The product literature states that under current legislation income payments will be paid gross and subject to UK income tax at the investor's highest marginal rate, where held outside of a tax wrapper.

Please note, tax rules and legislation are subject to change at any time.

Capital At Risk Barrier (Subject To Counterparty Solvency)

Barrier Level: 65% of Initial Index Level.

Downside: 1:1

Capital at Risk Barrier Type: End of Term only

If the Final Index Level is no more than 35% below its Initial Index Level, investors' capital should be returned in full. However, if the Final Index Level is more than 35% below its initial level, investors will suffer a reduction to their invested capital of 1% for every 1% the Final Index Level is below its respective Initial Index Level.

Charges

Unless stated otherwise charges do not affect the amount being invested as they have been taken into account in the terms of the investment. So, for every £100 invested, the return, provided the investment is held until maturity, should be £100, plus or minus the gain or loss in accordance with the defined terms. Separate fees may be payable to your adviser, platform or stockbroker for arranging this investment.

The total charges incorporated in the terms of the investment: Approximately 4.03%

Note that prior to 1 June 2024 this figure in our database was provider charge only

If surrendered early, the value will be dependent on a number of factors and may be less than the original amount invested.

Summary Table

Income

Event Outcome
Morgan Stanley default = All payments will cease.
If not
If on each quarterly observation date (unless an early maturity occurs) the FTSE 100 Index closes no more than 20% below its Initial Index Level = 1.59% quarterly income payments received throughout the term
If not
If the FTSE 100 Index closes more than 20% below its Initial Index Level on at least one quarterly observation date = 1.59% quarterly income will not be paid for periods when the index closed more than 20% down

Income

Event Outcome
Morgan Stanley default = Return of any capital subject to insolvency proceedings - potential total loss
If not
If on any quarterly observation date from the second year onwards, the FTSE 100 Index closes at least 5% above its Initial Index Level = Return of invested capital in addition to income outlined above
If not
If at the end of the term the FTSE 100 Index is no more than 35% below its Initial Index Level = Return of invested capital in addition to income as outlined above
If not
As the FTSE 100 Index is more than 35% lower = Invested capital is reduced in line with the fall in the index at maturity on a 1% for 1% basis

Fees

Where no advice has been sought or given, our fee for acting as intermediary for this investment is 1.65% of the amount invested, capped at £2,000. For example, on an investment of £25,000 our fee would be £412.50 and for an investment of £125,000 it would be £2,000.

Fee Calculator:

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Risks

All investment involves risk and you could lose some or all of the money you invest.

It is imperative that you read the plan brochure and terms and conditions and understand all of the risks involved, which are outlined on page 14 and 15 of the brochure, prior to proceeding. If you do not fully understand the risks, the commitment or you are unsure as to the suitability of the investment for you, you should not proceed but instead contact us via E-mail or Callback Request for advice.

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Information

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