frequently asked questions

A: Prior to the Start Date your money will be held by us as banker and not as client money. This means that your money will be held by us, collectively with the funds of other investors. This arrangement will not impact on your rights to seek compensation from the FSCS in the event of Investec's insolvency. Further details of the FSCS and eligibility criteria are available at www.fscs.org.uk/consumer.

Investment Plans
A: Shortly after we receive your investment, we will send you a cancellation notice which provides you with a 14 day period in which to change your mind. If you decide to cancel, provided we receive your cancellation notice prior to the Start Date, we will return your initial deposit without interest.

If we receive your cancellation notice after the Start Date we will pay you the current market value of the Plan which may be less than the amount you originally invested. If you are transferring an existing ISA to us, the cancellation notice will be sent to you shortly after we receive the proceeds from your previous ISA manager.

If you decide to cancel then you can choose to transfer your ISA back to the original manager, a new manager, or have the proceeds returned to you as a cheque. In the latter event, you will lose any favourable tax treatment associated with the ISA.

If you wish to exercise your right to cancel simply complete and return the cancellation notice or write to us at Investec Administration, PO Box 1008, St Albans, Hertfordshire AL1 9LZ.

Deposit Plans
A: Shortly after we receive your investment, we will send you a cancellation notice which provides you with a 14 day period in which to change your mind. If you decide to cancel within this period, we will return your initial deposit without interest.

If you are transferring an existing cash ISA to us, the cancellation notice will be sent to you shortly after we receive the proceeds from your previous ISA manager.

If you decide to cancel then you can choose to transfer your ISA back to the original manager, a new manager, or have the proceeds returned to you as a cheque. In the latter event, you will lose any favourable tax treatment associated with the ISA.

If you wish to exercise your right to cancel simply complete and return the cancellation notice or write to us at the Investec Administration, PO Box 1008, St Albans, Hertfordshire AL1 9LZ.

A: The Plan is designed to be held until maturity. If you need to cash in your Plan early, you may, however we cannot guarantee what its value will be at that point and it may be less than you originally invested.

We will pay you the value of your Plan in accordance with the prevailing market rate at that time, less any associated selling costs and transfer taxes. We would need to receive an instruction from you in writing. Further information on procedures for cashing in your Plan early is provided in the Terms and Conditions.

A: The Plan is designed to be held until maturity but partial withdrawals or partial ISA transfers are permitted subject to a minimum of £3,000 remaining invested in the Plan. Any returns at maturity will be based on the amount remaining in the Plan.

A: In the event that Investec fails or becomes insolvent the Collateral will reduce the risk of potential loss to your investment. The Collateral will be valued daily by Investec to ensure it is of an equivalent value to your investment and will be held by Deutsche Bank AG, London Branch as independent custodian. Investec will be required to post additional Collateral if there is a shortfall in the value of the Collateral compared to the fair market value of the Plan. Any withdrawals or substitutions in relation to the Collateral will be verified by an independent verification agent, Deutsche Bank AG, London Branch. If Investec were to fail or become insolvent, then the Collateral could be accessed and used to protect your investment value at that time.

The return of your investment will depend on the solvency of each of the UK 5, with a 20% proportion of your investment being linked to each. If one of the UK 5 fails or becomes insolvent during the Plan Term 20% of your investment will be at risk.

See the following brochures for more details on UK 5:

FTSE 100 Enhanced Kick-Out Plan 28
FTSE 100 Geared Returns Plan 33
FTSE 100 Bonus Income Plan 23 - ISA
FTSE 100 Bonus Income Plan 23 - Non ISA

A: No charges are taken away from your initial investment. As Plan Manager, Investec incurs costs and charges in administering and marketing the Plan, including paying commission to your financial adviser. We allow approximately 5% for Deposit Plans and 6% for Investment Plans to cover these costs and our management fee, when setting the return for the Plan. The exact amount will depend on the actual costs we incur.

No charges or fees are taken away from your original deposit or your potential maturity payment, and there are no annual management charges, so any returns are based upon the full amount you invest into the Plan.

Deposit Plans
A: Direct investments: If you invest directly into the Plan, any Early Bird Interest and return at maturity will be paid net of basic rate income tax. If you are a higher rate tax payer a further liability will arise.

If you are not a tax payer and are entitled to receive Early Bird Interest gross (i.e. without tax deducted at source) you will need to ensure that we hold a valid Form R85 before the Start Date. If you are entitled to receive maturity returns gross, you will need to ensure that we hold a valid Form R85 at the date your Plan matures. You can find a copy online at www.hmrc.gov.uk/forms/r85.pdf.

ISA investments: Returns from the Plan and Early Bird Interest are not subject to tax, and therefore will be paid gross.

Investment Plans
A: Direct investments: Any gains made at maturity are liable to Capital Gains Tax (CGT). However, there is an annual CGT exemption (£10,100 for the current tax year), which can be utilised to reduce or eliminate the tax payable, depending on your individual circumstances.

Early Bird Interest in respect of a stocks and shares ISA is paid net of a HMRC flat rate charge of 20%. If you are a higher rate tax payer a further liability will arise. If you are not a tax payer and are entitled to receive Early Bird Interest gross (i.e. without tax deducted at source) you will need to ensure that we hold a valid Form R85 before the Start Date. You can find a copy online at www.hmrc.gov.uk/forms/r85.pdf.

ISA investments: Maturity returns from stocks and shares ISAs are not subject to tax, and are therefore paid gross.

If at maturity you sustain a capital loss within an ISA, you cannot offset this for tax purposes against other gains. Early Bird Interest in respect of a stocks and shares ISA is paid net of a HMRC flat rate charge of 20%.

Deposit Plans
A: Any Early Bird Interest and return at maturity will be paid net of basic rate income tax.
The tax treatment of any returns thereafter will depend on your personal circumstances and the tax legislation in your jurisdiction. Our Deposit Plans are UK onshore assets subject to UK tax rules. Assets bought onshore will be subject to UK tax legislation.

Independent tax advice should be sought prior to making any investment into a Plan.
If you are entitled to receive Early Bird Interest gross, you will need to ensure that we hold a valid Form R105 at the Start Date. If you are entitled to receive returns at maturity gross, you will need to ensure that we hold a valid Form R105 by the Maturity Date.

You can find a copy online at www.hmrc.gov.uk.

Investment Plans
A: Early Bird Interest will be paid net of basic rate income tax. If you are entitled to receive this gross, you will need to ensure that we hold a valid Form R105 at the Start Date. You can find a copy online at www.hmrc.gov.uk.

Maturity returns will be paid gross.

The tax treatment thereafter will depend on your personal circumstances and the tax legislation in your jurisdiction. Our Investment Plans are UK onshore assets subject to UK tax rules. Assets bought onshore will be subject to UK tax legislation.

You should seek specialist tax advice before making any investment into a Plan.

A: You can invest up to £5,640 using your 2012/13 cash ISA allowance, as long as you have not already used all or part of your cash ISA allowance for the tax year. You can only subscribe to one cash ISA in each tax year.

To make an investment into our cash ISA, you need to be over 18 and a UK resident for tax purposes. An ISA investment can only be held in your name.

A: You can invest up to £11,280 using your 2012/13 stocks and shares ISA allowance, as long as you have not already used all or part of your stocks and shares or cash ISA allowances for the tax year. If you have, you can invest the difference between the amount already used and the £11,280 total ISA allowance for 2012/13. You can only subscribe to one stocks and shares ISA in each tax year.

To make an investment into a stocks and shares ISA, you need to be over 18 and a UK resident for tax purposes. An ISA investment can only be held in your name.

A: If you have other ISA investments you can transfer them into a Plan (subject to our Plan minimum of £3,000), and this will ensure that the ISA tax status of your investment will continue.

You can transfer as many existing ISAs as you like, without affecting your annual ISA allowance. You can also transfer current year subscriptions. These transfers must be for the whole current year subscription in that ISA, up to the day of transfer. Once the subscription is transferred it is treated as if it had been invested directly into our ISA.

You cannot transfer a stocks and shares ISA into a cash ISA.

If you wish to transfer, you should check with your existing ISA manager that this is permitted. They may impose a charge for transferring. You should also be aware of the potential for the loss of income or growth whilst the transfer is pending.

When we receive the transfer funds, we will set up an individual Plan for each existing ISA that you transfer to us.

Deposit Plans and the FTSE 100 Bonus Income Plans
(a) UK tax resident individuals: To invest in the Plan on your behalf or on behalf of another you must be aged 18 or over. You must be resident and ordinarily resident in the UK for tax purposes.

(b) Non-UK tax resident investors: To invest in the Plan you must be aged 18 or over and resident in Guernsey or the Isle of Man.*

Other Investment Plans
(a) UK tax resident individuals: To invest in the Plan on your behalf or on behalf of another you must be aged 18 or over. You must be resident and ordinarily resident in the UK for tax purposes.

(b) Non-UK tax resident investors: To invest in the Plan you must be aged 18 or over and resident in Guernsey, Jersey or the Isle of Man.*

For individual investors, we will need your tax identification number, country or place of birth and a copy of your passport or identification issued by the state.

*Non-UK tax resident investors cannot invest in an ISA.

A: If Investec Bank plc is unable to meet its financial obligation to return your money at maturity (i.e. goes bankrupt or similar), you will need to seek compensation from the Financial Services Compensation Scheme (FSCS).

Investec is covered by the FSCS. The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors, including most individuals and small 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.

For further information about the scheme (including the amounts covered and eligibility to claim) please call us on 020 7597 4065, refer to the FSCS website, www.FSCS.org.uk, or call 0800 678 1100.

The FSCS is mainly in place for individuals and small companies to seek compensation. There are specific eligibility restrictions for other customers. Please refer to the Deposit Plan brochures for further details.

A: If the Bank issuing the Securities (i.e. Investec) fails or becomes insolvent, it is highly unlikely that you would be covered by the Financial Services Compensation Scheme (FSCS) because you are investing in a security-based Plan rather than a deposit-based Plan.

There are exceptional circumstances under which you could be covered (subject to eligibility), for example if Investec Bank plc acting as the Issuer of the Securities or as Plan Manager were also found to have been in breach of FSA rules.

Further details of the FSCS and eligibility criteria are available at www.fscs.org.uk/consumer.

A: As you have a financial adviser please continue to use them as your first point of contact.

Alternatively, you can write to us at:
Investec Administration, PO Box 1008,
St Albans, Hertfordshire, AL1 9LZ.

You can also, contact us by telephone on 0845 603 9176.

For your security and training and monitoring purposes telephone conversations may be recorded.

A: It is essential that you only invest in the Plan if you fully understand the benefits and associated risks.

Where you have unanswered questions you should seek advice from a financial adviser or tax adviser in your jurisdiction.

For unbiased general information about this type of product please refer to the Money Advice Service website, which was set up by the government, at www.moneyadviceservice.org.uk