Press releases

Launch of Early Bonus Plan 7.

David Beard, Business Development Manager
David Beard
Head of Product Development

11 June 2012

David Beard, Business Development Manager
David Beard
Head of Product Development

Legal & General’s latest capital at risk structured “kick out” investment plan, Early Bonus Plan 7,offers investors a final bonus payment of 61.5% at the end of a six year investment term. 

The plan also incorporates a kick out feature that pays investors their capital, plus a bonus payment, at any one of five set trigger points prior to the end of the term (15 August 2018) - see early bonus payment table below.

The Plan is available for investment over an eight week period from Monday 11 June until Friday 27 July 2012.  

David Beard, Legal & General’s Business Development Manager, Platforms & Distribution said, “We have raised the bonus payments in our latest Early Bonus plan, EBP 7, offering investors the potential for a 10.25% return on the first anniversary if the stock market is the same level or higher. So investors have the flexibility to review their investment according to prevailing market conditions. 

There are five opportunities for the kick out feature to trigger an early payment. Investors are also protected against a possible slow down in the economy, which could result in a relatively small fall in the FTSE 100 Index. Investors are assured of the return of their original investment unless the FTSE 100 Index on the maturity date (15 August 2018) has fallen by 50% or more of the starting index level on 15 August 2012.”  

The Plan offers repayment of capital plus a bonus as long as the final level of the FTSE 100 Index is equal to, or better than, the initial FTSE 100 Index level at the investment start date (or strike date), provided the investment is held until maturity and the early bonus payment is not triggered.

Early bonus payment
The early bonus payment feature will be activated if the FTSE 100 Index is equal to, or better than, the initial index level at any of the anniversaries. If this happens the Plan will close and pay a set bonus as shown in the table:

Early Bonus

Bonus anniversary levels
End of YearOneTwoThreeFourFiveSix


If the early bonus payment feature is activated, the investment will close and there is no option for the investment to continue.

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 six 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. Investors can invest up to £11,280 in a stocks and shares ISA for the 2012/2013 tax year. There is no maximum for ISA transfers. The last date for ISA transfers is 13 July 2012 to allow time for the completion of the transfer before the offer close date. The closing date for all other applications is 27 July 2012.

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

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

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 15 August 2012 and the end of the fixed term is 15 August 2018.
2. This plan is not suitable for customers who may need to access their money before the end of the six 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 and on each anniversary.
4. If the Index level on one of the early bonus anniversary dates (see below) is at, or above the initial Index level, the Plan closes early paying back the original investment plus a set bonus. The early bonus anniversary and payment dates are shown in the table below:

Early Bonus Payout dates

Early bonus payout dates
Early Bonus Anniversary DateEarly Bonus Payment DateBonus %
 15 August 201322 August 2013 10.25% 
15 August 201422 August 2014 20.50%  
17 August 2015 24 August 201530.75%
15 August 201622 August 2016  41.00%
15 August 201722 August 2017