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collateralisation
Investec Structured Products presents a unique investment opportunity for our latest collection of Plans with the continuation of our Collateralised options on the FTSE 100 Geared Returns Plan 33, FTSE 100 Bonus Income Plan 23 and the FTSE 100 Enhanced Kick-Out Plan 28.
Taking the theme of diversification to a new level, Collateralisation allows you to diversify your clients’ investments across five UK institutions; HSBC Bank plc, Nationwide Building Society, Santander UK plc, The Royal Bank of Scotland plc and Lloyds TSB Bank plc.
To find out more watch our exclusive video interview with Gary Dale and Lawrence Gosling below.
The Collateralised Plans have been designed to reduce the potential loss to your client’s investment in the event that Investec fails or becomes insolvent and to replace this risk with a risk spread across one or more named institutions.
The Collateralised Plans work in the same way as our usual Plans with the following additional features:
Protection of your client’s investment against the
insolvency of Investec
On the Start Date of the Plan Investec will purchase debt securities issued by named institution(s) and/or cash and/or UK government debt (the ‘Collateral’) with a value equal to the Plan value. The Collateral will be deposited in an account with Deutsche Bank AG,
London Branch acting as independent custodian.
The Collateral will be held for the benefit of investors in the relevant Plan in case of Investec failing or becoming insolvent. In this circumstance the Collateral will be used to protect your client’s investment value at that time.
Throughout the Plan Term, to ensure that the value of the Collateral is equal to the value of the Plan, Investec will monitor the value of the Collateral daily and will be required to post additional Collateral in case of any shortfalls.
Insolvency risk of named institution(s)
Your client’s investment is linked to the solvency of one or more named institutions. If any or all of the named institutions fails or becomes insolvent, some or all of your client’s investment will be at risk.
Credit rating changes
Please note that the credit ratings for some institutions have changed and are different to those in our brochures.
For further information