Barclays Stockbrokers launches RBS UK 10% autocall

Barclays Stockbrokers has announced the launch of a new structured product - the RBS UK 10% Autocall issued by Royal Bank of Scotland plc.  The product is available exclusively to Barclays Stockbrokers clients until 17 March 2011.

The RBS UK 10% Autocall has a maximum five year term although it has the potential to redeem early in years two, three, and four, depending on the performance of the FTSE 100 Index. The RBS UK 10% Autocall provides investors with the opportunity to make a potential fixed return equivalent to 10% per year since the Start Date. At close of business on any of the Early Redemption Dates, if the Index has risen above (or remained at) the closing level of the FTSE 100 on the Start Date then the product will redeem early. 

Therefore, if an investor's view is that the FTSE 100 Index will rise moderately over the coming years, the RBS UK 10% Autocall offers the potential to make significant returns from only small moves in the Index. In addition, as long as the Index has always remained at or above 60% of the Starting Index Level at the close of business on each day during the five year life of the Certificate, investors will be entitled to receive back the Issue Price after five years. However, if on the Final Redemption Date, the closing level of the Index is below the Starting Index Level and the Index has closed below 60% of the Starting Index Level on any business day during the Observation Period, investors' capital will be at risk and they may lose some or all of their money.

Des Byrne, Head of Barclays Stockbrokers, said "The RBS UK 10% Autocall offers a potential return of 10% per annum and comparable products that we have offered in the past have proven popular with investors taking a medium-term view of the UK equity market. This investment presents investors with the potential opportunity to make a return of either 20% after two years; 30% return after three years; 40% return after four years or 50% return after five years. We are pleased to continue to offer our clients the opportunity to invest in a product that offers exposure to the FTSE 100 and complements those which we have previously made available through Barclays Stockbrokers. As we approach the end of this tax year, we anticipate significant client demand for this product, as given that it can be held in an ISA or a SIPP; all returns will be free from capital gains tax."

This investment is ISA eligible if purchased by 17 March 2011 and can also be held in a SIPP to receive returns free of income and capital gains tax.