Legal & General continues its SCARP series with launch of Growth Plan 6.

12 March 2012

James Harrington - Head of Commercial Implementation, Platforms & Distribution
James Harrington
Head of Structured Solutions

Growth Plan 6 offers the potential for a fixed bonus of 60% at the end of its five year term and is available for investment from Monday 12 March February until Friday 4 May 2012.

Growth Plan 6 is a structured capital at risk plan (SCARP). The investment is structured to offer investors return of their initial capital plus a bonus if the FTSE 100 Index level at the maturity date (23 May 2017) is the same as, or above, the initial index level on the strike date (23 May 2012).  However, if the index level at the maturity date has fallen there is the potential that some or all of the original investment may be lost1.

Legal & General’s Head of Commercial Implementation, Platforms & Distribution, James Harrington said, “The ‘SCARP’ sector has attracted a great deal of interest in recent years due to continuing low interest rates. This relatively new product group has appeal to investors who may be prepared to take an element of risk with capital to find attractive returns with the potential to deliver growth that is greater than inflation. Investment plans such as our Growth Plan range offer investors, who believe that the UK stock market will hold its value over the medium term, the opportunity to benefit from an attractive fixed bonus; whilst at the same time reducing the downside risk should the FTSE 100 Index fall. Of course, it is important for clients and advisers to recognise that they do take on other risks in these plans, including the risk of counterparty default, and that capital is at risk from very large falls in the market. The eight week offer period for this plan spans two tax years so investors with available ISA allowance could each invest up to £21,960.”

Note1: Capital is not protected with this Plan. There is the potential that some or all of the original investment may be lost if:

  • The FTSE 100 Index has fallen by 50% or more (that is 50% - 100%) of its starting level at the end of the five year term - the original capital invested will be reduced by 1% for each 1% that the final level of the FTSE 100 Index is below its starting level. So, if the FTSE 100 Index is 60% less than it’s starting level, investors will receive 60% less than they invested.

The minimum investment is £3,000. The eight week offer period spans two tax years. So investors can use their stocks and shares ISA allowance, where available, from both the 2011/2012 (£10,680) and 2012/2013 (£11,280) tax years to invest up to £21,960 before the close on 4 May. There is no maximum for ISA transfers.

The last date for ISA applications for the 2011/2012 tax year is 5 April while the closing date for ISA applications for the 2012/2013 tax year is 4 May. The last date for ISA transfers is 20 April to allow time for the completion of the transfer before the offer close date. The closing date for all other applications is 4 May 2012.

Commission is 3% of the sum invested. Full details for this product are available on the
Legal & General dedicated adviser website www.landgstructuredproducts.com.

Advisers can also contact Adviser Direct on 0845 273 0008 (Lines are open from 9am to 5pm Monday to Friday. We may record and monitor calls. Call charges will vary).  
Or e-mail structured.team@landg.com

Notes to editors

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.

1. The contract start date is 23 May 2012 and the end of the fixed term is 23 May 2017.
2. This plan is not suitable for customers who may need to access their money before the end of the five year term or who may be seeking a definite return, and are not prepared to accept the risk that they may lose some or all of their investment.
3. The growth of the FTSE 100 Index will be measured using the initial level of the Index at close of business on the start date and the final level of the Index on the maturity date.
4. If the FTSE 100 Index has fallen by less than 50% (that is 0% - 49%) of its starting level at the end of the five years - the original capital invested will be returned in full with no bonus.
5. The investment should be held until maturity but can be encashed or, if held as an ISA, transferred to another ISA provider at any time. If this happens the investor may get back less than they originally invested.
6. The securities provider is Abbey National Treasury Services Plc (Guarantor is Santander UK Plc rated A+ Standard & Poors). In the event that these entities become insolvent and therefore unable to meet their commitments, the investor could lose some or all of their original investment and any applicable bonus. Source http://www.aboutsantander.co.uk/investors/credit-ratings.aspx
7. This investment does not invest directly into the companies that make up the FTSE 100 Index and so no dividend income is received.


For more information please contact:

Mike Connolly

Mike Connolly
PR Manager Savings

t: +44 (0) 1737 375365
m: +44 (0) 7802 503917
e: mike.j.connolly@landg.com


About Legal & General

Legal & General (Portfolio Management Services) Limited.

Registered address:
One Coleman Street
London EC2R 5AA.
Registered in England 2457525.

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