monza fixed income

8/14/2019 Monza Fixed Income

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Arc Fixed Icomeplan

Capital & Income

9.00%annual or0.73%monthly income.A product designed to pay an annual or monthlyincome backed by a major nancial institution.

Arc Capital & Income plc


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KeyBenets

5annualpaymentso.%or6

monthlypaymentso.%

1%capitalreturneveniallthreeindiceshaveallenbyupto%

axreeorPEP/ISAinvestments

Investbetween4,andmillion

tosecuretheincomebenets

A5yearsand1weekinvestment

Noadditionalcharges,eesordeduc-tionsorallinvestmentsmaintainedto

maturity

AllPlaninvestmentsissuedbyamajor

nancialinstitution

ArcCapital&IncomeFixedIncomePlan

Te Plan is a ve year investment and is designedto provide a choice o annual or monthly incomewhich is payable irrespective o stockmarket

perormance. Te return o capital at the end othe term is dependent on the perormance o theFSE 100, S&P500 and Nikkei 225 so is notguaranteed, but the Plan does provide someprotection i these indices do all (see Calculatingthe capital return on page 3).

Tis product can help in improving the incomeyou receive rom your capital and can represent anappropriate way o investing part o your capitalproviding you are comortable with the investment

risks.

Whathappenstoyourcapital?

Your money will be used to purchase a bond issuedby a Standard & Poors A+ rated nancial institu-tion, who utilises a range o nancial instruments toprovide exactly the returns explained in this bro-chure. You should only consider this investment i

you are prepared to accept a degree o risk to yourcapital and, as the plan is designed to be held or theull investment period, do not require access to yourmoney during the investment term.

WhyArcCapital&Income?

Arc Capital & Income plc (ACI) has been develop-ing and oering structured products, such as theBull & Bear racker Plan since 1997, and hasapproximately 120 million under management.ACI is part o the Arc Fund Management Holdingsplc, an AIM quoted investment company.

IncomeOptions

5 AnnualPayments o

9.00%Commencing on31 October 2008

with a nal paymenton 31 October 2012

60 MonthlyPayments o

0.73%Commencing on

30 November 2007with a nal paymenton 31 October 2012

or

Income paid gross

Tax Free income or ISAs and PEPs

ISAs Maxi ISA Invest via a maxi ISA or the2007/08 tax year. By investing the maximum7,000 through an ISA you can look orward to atax ree income o 630.00 per annum or 51.10per month.

ISAs Mini ISA Invest via a mini ISA or the2007/08 tax year. By investing the maximum4,000 through a mini ISA you can look orward


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to a tax ree income o 360 each year or annum or29.20 per month.

PEP/ISA Transers ranser all or some oyour existing investments in to the Plan with nomaximum limit on the size o your investment(minimum 4,000). All income will be tax ree.

Your existing manager may charge an exit ee, andthe value o transerred assets may all or rise whilethe transer is being arranged.

Direct Investment Invest between 4,000(minimum) and 2 million (maximum). Incomearising rom the Plan is paid gross. Basic ratetaxpayers are liable to 20% tax and 40% or higherrate taxpayers.

NoStockmarketgrowthrequired

Te income payments are not dependent on theperormance o the three indices. Te Plan alsorequires no growth in any o the indices in order toreturn your original capital in ull at the end o theterm.

A ull return o capital will be paid at maturity aslong as no index alls by more than 30% rom itsInitial Level on any day during the investment term31 October 2007 to 31 October 2012. In thisevent, the return o your capital could be aectedas described below.

For each index, the Initial Level will be its closing

level on 31 October 2007 and the Final Level willbe its close o business level on 31 October 2012.

CalculatingtheCapitalReturn

Te return o capital is dependent upon the per-ormance o the FSE 100, S&P 500 and theNikkei 225.

Tere will be a 100% return o capital i

o idex s by more th % rom its IitiLeve durig the ivestmet term; OR

the Fi Leve o ech idex is equ to or boveits Iiti Leve

A reduced capital return can only apply i

oe or more o the idices s by more th% rom its Iiti Leve durig the ivestmetterm AND

the eve o oe or more idex is beow itsIiti Leve

In this event your capital would be reduced withreerence to the lowest perorming index. Anycapital reduction would be at the rate o 1% oreach 1% that the Final Level o the lowest perorm-ing index is below its Initial Level. Examples oreturns based on an investment o 10,000 are set

out overlea:

*

*

*

*

Chck out th nt Incom tun vilbl

IvestmetAmout

IvestmetRoute

Gross Ater Bsic Rte tx (%) Ater Higher Rte tx (%)

Mothy Au Mothy Au Mothy Au

Mii ISA . . . . . .

, Mxi ISA . . . . . .

, PEP/ISA . . . . . .

, Direct . . . . . .

, Direct . ,. . ,. . ,.

, Direct . ,. . ,. . ,.

, Direct . ,. . ,. . ,.

, Direct ,. ,. ,. ,. ,. ,.


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4

IMPORANpleasenoteTe inormation in the table is designed to provideexamples o the calculation o the total returns indierent circumstances. Tey are not a predictiono how we think the indices will perorm. Tecapital return is not protected and there is a risk oa capital loss. Te overall return, including income,could be less than your original investment. Tishigh income product can help you improve theincome you get rom your capital and can be a

suitable way o investing part o your investmentportolio providing you are comortable with theinvestment risk. You should only consider this Planas part o your investment portolio i you areprepared to accept a degree o risk to all or part othe capital invested.

As the Plan is designed to be held or the ullinvestment period you should only invest i you donot require access to your unds during the 5 yearinvestment term. I you cash in early you may

receive back less than the original investment.

Indx MumntAnnul Incom t 9.00% Monthl Incom t 0.73%

Cpitl Incom Totl Cpitl Incom Totl

No idex s by more th % t y time durig the ivestmet term

Te Fi Leve o ech idex is t or boveits Iiti Leve

, , , , , ,

Te Fi Leve o oe or more idex isbeow its Iiti Leve .

, , , , , ,

Oe or more idex s by more th % durig the ivestmet term

Te Fi Leve o the owest erormigidex is t or bove its Iiti Leve

, , , , , ,

Te Fi Leve o the owest erormigidex is % o its Iiti Leve

, , , , , ,

Te Fi Leve o the owest erormigidex is % o its Iiti Leve

, , , , , ,


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5

Your Plan will invest in a bond issued by a nancialinstitution with a A+ Standard & Poors rating.We consider it unlikely that such an institution willnot meet its obligations: I they were not to do so,you may not get back all your original investment.

KeyDates

All index measurements are taken at close obusiness.

PEP & ISA rsers cose October

New ISA ictio / October

Direct Ivestmets cose October

Ivestmet dte October

Iiti Leves October

Fi Leves October

Mturity dte November

*

*

*

*

*

*

*

WhyshouldIconsiderinvestinginthe

ArcFixedIncomePlan?As we write, UK base rates have increased by1.25% over the past 12 months and there is a strongconsensus among City analysts and supported bythe recent comments o Mervyn King, Governor othe Bank o England, that a urther point rise to6% will be necessary to cool the economy, inparticular the housing market, and to temperinationary pressures.

Te next rise is expected to be the last and, as can

be seen rom the Spot Yield Curve below, interest

Of piod

Ivestmet dte 31/10/2007

Cosig dte 24/10/07 Fi eve 31/10/12

Mturity dte: 07/11/12

Invtmnt Piod (31 Octob 2007 to 31 Octob 2012)( moths with % dowside rotectio rom the Iiti Leve)


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6

rates are then anticipated by the money markets togradually decline; over the lie o the Arc FixedIncome Plan 2 by perhaps as much as %.

6.00

5.90

5.80

5.70

5.60

5.50

5.40

5.30

5.20

5.10

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6years

UK Spot Yild Cuv(Source: Bk o Egd th August )

interestrate%

Te chart above describes the currently anticipatedprogression o spot interest rates but it does notreect the rates investors receive on their depositswith high street banks and building societies whichcan be expected to be marginally lower, save orshort term and limited headline grabbing oerings.Retail rates will inevitably reect the downward

movement in wholesale money market interestrates.

Regardless o what happens to prevailing marketrates, the Arc Plan will pay an annual income o 9%or 0.73% monthly over its ull 5 year term. Com-pared to current high street rates, let alone thereduced returns anticipated in the uture, the Planis highly competitive. Te extra return oered bythe Plan can only be achieved by the investoraccepting a degree o risk, which is the possibility

o reduced capital i the three underlying stockmar-kets all by more than 30% at anytime during theve year term and do not recover. I the 30% isbreached by any or all o the indices initial capitalwill be reduced with reerence to the perormanceo the lowest index over the ull term.

It is important or you to consider the trends o thethree underlying stockmarkets, now, over the lie othe Plan and at the end o its term beore investing.Te current level o uncertainty and volatility in

world stockmarkets is the main reason that the 9%

annual and 0.73% monthly return can be achieved.Arc Capital & Income cannot thereore guaranteethat similar returns will be available in the uture.

AbouttheIndices

Tere are many global indices, which have been

developed to assist investors to ollow the perorm-ance o world stock markets. Tese indices arecalculated by reputable nancial institutions. Teyare widely quoted and accepted as giving a airreection o market movements.

Te charts below detail the perormance o theFSE100, S&P 500 and Nikkei 225 indices sinceinception o the FSE 100 index in April 1984 andare designed to emphasise the long term nature oequity investment. You will note the tendency or

the FSE 100 and S&P 500 to closely correspondwith each other over time. You should however bearin mind that past perormance o the Indices is not aguide to how they will perorm in the uture.

8,000

7,000

6,000

5,0004,000

3,000

2,000

1,000

0

02/04/1984

02/04/1986

02/04/1988

02/04/1990

02/04/1992

02/04/1994

02/04/1996

02/04/1998

02/04/2000

02/04/2002

02/04/2004

02/04/2006

FTSE 100

FTSE 100 Index measures the perormance o theUKs largest 100 companies by market capitalisa-tion. Te index is a capital only index, in that itmakes no allowance or dividend income, and itsperormance is dependent upon the perormance othe companies within the Index. Te companiesthat make up the index can change regularly butcurrently include, HSBC, BP, Vodaone andGlaxoSmithKline.


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1,800

1,600

1,400

1,200

1,000

800600

400

200

0

02/04/1984

02/04/1986

02/04/1988

02/04/1990

02/04/1992

02/04/1994

02/04/1996

02/04/1998

02/04/2000

02/04/2002

02/04/2004

02/04/2006

S & P 500

S&P 500 measures the perormance o the largest500 companies in the USA by market capitalisa-tion. It currently includes shares such as CocaCola, Pzer, Walmart and MacDonalds

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

02/04/1984

02/04/1986

02/04/1988

02/04/1990

02/04/1992

02/04/1994

02/04/1996

02/04/1998

02/04/2000

02/04/2002

02/04/2004

02/04/2006

Nikki 225

Nikkei 225 measures the perormance o theleading 225 Japanese companies, without accounto dividends, and reects all sectors o the economy.Included within the index are many householdnames such as Sony, Nissan, Sanyo, Sharp andDaiwa.

It is by using the three indices that the high xed

income can be achieved, but it should be appreci-

ated that by basing the Plan on three indices thechances o one breaching the 30% barrier is in-creased but as the FSE100 & S&P 500 have hada tendency to correlate in the past, it is our beliethat the increase in risk is marginal. It should alsobe borne in mind that the capital return will bebased on the worst perorming index only.

At the time o writing, higher interest buildingsociety/bank accounts, where initial capital isnot put at risk, are typically producing 6.25%p.a. gross, compared to the Plans 9.00% p.a.gross (8.76% p.a. or monthly income).

Disclaimers

FSE 100 DISCLAIMER; Te Plan is not in anyway sponsored, endorsed, sold or promoted byFSE International Limited (FSE), the Lon-don Stock Exchange Limited (the Exchange) orby the Financial imes Limited (F) and none othe FSE, the Exchange or F makes any war-ranty or representation whatsoever, either expresslyor implied, either as to the result to be obtainedrom the use o the index and/or the gure atwhich the said Index stands at any particular dayor otherwise. Te FSE index is compiled and

calculated by FSE. However, none o the FSE,the Exchange or the F shall be liable (whether innegligence or otherwise) to any person or any errorin the Index nor shall they be under any obligationto advise any person o any error or omissiontherein. FSE is a trademark o the Exchangeand F and is under license.

S&P 500 DISCLAIMER; Te Plan is not spon-sored, endorsed, sold or promoted by Standard &Poors, a division o the McGraw-Hill Companies,

Inc. (S&P). Neither S&P nor the AustralianStock Exchange (ASX), or the oronto StockExchange (SX),makes any representation orwarranty, expressly or implied, to the owners o thePlan or any member o the public regarding theadvisability o investing in securities generally or inthe Plan particularly or the ability o the S&PIndices to track general stock market perormance.S&P, ASX,SX have no obligation or liability inconnection with the administration or marketingo the Plan.


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NIKKEI 225 DISCLAIMER; Te Nikkei 225Index (the Index) is the intellectual property othe Nihon Keizai Shimbun, Inc (the IndexSponsor).Nikkei and Nikkei 225 are theservice marks o the Index Sponsor. Te IndexSponsor reserves all rights, including copyright, tothe Index. Te Plan is not in any way sponsored,endorsed, sold or promoted by the Index Sponsor.Te Index Sponsor does not make any warranty orrepresentation whatsoever, express or implied,either as to the results to be obtained rom the useo the Index or the gure at which the Index standsat any particular day or otherwise. Te Index iscompiled and calculated solely by the Index Spon-sor. However, the Index Sponsor shall not be liableto any person or any error in the Index and theIndex Sponsor shall not be under any obligation toadvise any person, including a purchaser or vendoro any o the products, o any error therein. In

addition, the Index Sponsor gives no assuranceregarding any modication or change in anymethodology used in calculating the Index and isunder no obligation to continue the calculation,publication and dissemination o the Index.

HowtoInvestintheArcCapital&IncomeFixedIncomePlanTere is no age restriction or direct investment into the Plan. o invest via an ISA or the current taxyear, you must be a UK resident or tax purposes,aged 18 or over- and must not have already sub-scribed to another ISA or the 2007/2008 tax year.

IMPORAN

Cheques should be made payable to Arc Capital &Income plc Client Account or, in the case o abuilding society cheque, Arc Capital & Income plcClient Account reerence (your name).

It is only necessary to send one cheque or the totalamount you wish to invest. Separate applications(e.g. rom a husband and wie) require a cheque inrespect o each applicant.

Beoreyouinvest

Beore you make your mind up to invest you shouldhave read and understood the inormation in this

brochure. You should have thought about the level


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o risk you are prepared to take when investing;made sure that you are comortable about takingsome risk with your capital; made sure you will notsuddenly need access to your money and that youhave acquainted yoursel with the FSA actsheet(see page 12).

Once you have satised yoursel that you do wantto invest you should complete the application orm,

using the application checklist below:

ApplicationChecklist

1. Unless you want to transer your PEP or ISA(see 7 below), you must ll in section 1 o thestandard application orm. It is only possible tohave a joint holder or a direct investment in theplan. I you want to use this acility, please ll inthe details o the joint holder in the relevant boxesin section 1. For direct investment on behal o achild (under the age o 18), the adult lling in theorm acts as a nominee o the child and the childsname and date o birth need to be added.

2. I you want to invest in an ISA or the tax year2007/2008, you must also ll in section 2. Weneed this inormation to set up an ISA investmentor HM Revenue and Customs.

3. You should enter the details o the amount you

want to invest in section 3.

4. By providing a password in section 4, we can giveyou inormation over the phone and give you accessto our web-based services. Please keep a note oyour password saely and separate rom details oyour investment.

5. Please indicate i you have received nancialadvice in section 5

6. You must read, sign and date section 6.7. I you want to transer a PEP or an ISA, youshould use the special application orm (pleasephotocopy it or contact us or more orms i you aretranserring more than one investment).


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1

YourQuestionsAnswered

What is my commitment?

o invest until 7 Novemer 2012, a period o 5 yearsand 1 week.

What are the aims o the Plan?

Te aim of the Fixed Income Plan (Plan) is to provide

u ymets o .% or mothy y-mets o .% d

A return of capital at maturity on 7 November 2012.At maturity, you will have the option o closingyour plan, or transerring to another ISA/PEPManager or continuing your investment on termsoered by the Plan Manager, Arc Capital &Income plc, at that time.

What are the risk actors?

Te over returs wi deed o the erorm-ce o the FSE , S&P d the Nikkei idices d coud be ess th your origiivestmet (see Wht bout my cit retur?overe d Ccutig the Cit Retur oge o this brochure).

Your circumstces coud chge, orcig you tocsh i ery.

I you trser or ecsh your P durig the termyou my get bck ess th the mout ivested.

I you exercise your right to cce ter the bodhs bee urchsed you my ot get bck youru origi ivestmet.

I the ci istitutio, which issues the bodsor your P, is to rey the mouts due toy your icome d mturity you coud osesome or o your ivestmet. o reduce this riskwe wi oy de with ci istitutio whichhs curret credit rtig o t est A+ romStdrd & Poors, or equivet, which deotes

high eve o ci stregth.

*

*

*

*

*

*

*

For these resos, this P is oy suitbe i youc ford d re rered to ccet the risktht some or o your cit coud be ost.

I you choose to mke PEP or ISA trser itothe P you might hve to y exit chrged coud ose some ivestmet growth rom

your curret PEP or ISA i the mrket rises whiethe trser is beig crried out.

Te eves d bsis o txtio d reies romtxtio c chge t y time. Te vue o ytx reies deeds o idividu circumstces.x ssumtios re bsed o Arc Cit &Icome cs uderstdig o curret egistiod rctice, which my chge i the uture.

What are my income benets?Te ollowing examples are based on a 10,000investment:

I you choose mothy icome you wi receive mothy ymets o commecig No-vember d cocudig October ;

I you choose u icome you wi receive veymets o the rst commecig o October d cocudig October .

Tese amounts are subject to tax or investmentsmade outside a PEP or ISA.

What about my Capital Return?

Te Plan is not guaranteed to return the ullamount o capital originally invested. Te CapitalReturn, which is paid separately rom the incomebenets, is dependant on the perormance o FSE

100 Index, S&P 500 and the Nikkei 225 Index(the indices) during the Investment Period 31October 2007 to 31 October 2012. Te InitialLevel o each index is its close o business level on29 August 2007. Te Final Level o each index isits close o business level on 31 October 2012.

I, at any time during the Investment Period, noindex alls by over 30% rom its Initial Level a ullreturn o capital will apply at maturity. A ull returno capital will also apply. I any index alls by over30% during the Investment Period but the Final

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*

*

*


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Level o each index is at or above its Initial Level.

I any index alls by over 30% during the Invest-ment Period and the Final Level o any index is lessthan its Initial Level, a capital loss will occur. Teloss in capital will be dependant on the Final Levelo the lowest perorming Index. Capital will be

reduced by 1% or each 1% the Final Level o therelevant Index is below its Initial Level.

For example i the Final Level o the relevant indexis 35% below its Initial Level the capital returnwould be 65% (100%-35%). Please see urtherexamples in the table contained in Calculating theCapital Return on page 3 o this brochure.

What is an Individual Savings Account (ISA)?

An ISA is a tax ree savings account. Tere are twotypes o ISA available;

Maxi ISA this must oer a stocks and sharespart and can oer a cash part. You may invest up to7,000 in a Maxi ISA. O this amount, up to3,000 can be held in cash. I you take out a MaxiISA, you cannot invest in another Maxi or a MiniISA in the same tax year.

Mini ISA this oers investment in only one o

the parts that a Maxi ISA oers. You can invest inone Mini ISA or each part in each tax year.Tereore you may invest up to 4,000 in a stocksand shares ISA and 3,000 in cash. Each part canbe with a dierent provider.

I you take out a Mini ISA, you cannot invest inanother Mini ISA or the same part or a Maxi ISAin the same tax year.

Te Government has announced that its reorms to

make ISAs simpler and more exible will come intoeect a year earlier than originally planned, inApril 2008.

Te reorms include:

Extedig ISAs ideitey, with gurtee thtthe over u ivestmet wi remi t est,;

Brigig Legcy PEPs withi the ISA wrerto ebe ivestors to mge their uds more

efectivey;

*

*

Removig the Mii/Mxi distictio withi ISAs;

Aowig trsers rom the csh comoet oISAs ito the stocks & shres comoet;

Aowig Chid rust Fud ccouts to ro overito ISAs to ecourge youg eoe to miti svig hbit ito their dut yers.

What happens i I change my mind aboutinvesting?

I you decide not to invest you should let us knowas soon as possible. Within 5 working days oaccepting your application we will send you anotice o the right to cancel. From the time youreceive this notice you will have 14 days to change

your mind and cancel your application. I wereceive your request to cancel ater we have pur-chased the bonds you may receive back less thanyour original investment.

What inormation will you give me about myinvestment?

We will send you an acknowledgement within 5working days o receiving your application. In

November we will send you a statement showingthe bonds purchased or your plan. Ater this, wewill issue a statement and valuation o yourinvestment as at the end o October each year.

What will happen to my investment i I die?

ISA and PEP investments will lose their ISA andPEP status. We will deal with all plans in line withthe instructions o your personal representatives.

Te investment may be transerred to your bene-ciaries at no cost or encashed or which a chargewill be made (see below).

How much will any advice cost?

I you receive advice rom an independent adviser,he or she will give you details about the cost. I youare not receiving any advice, we may still pay anintroducing independent adviser commission. Any

commission paid will not aect the returns quoted.

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Can I cash in my investment beore maturity?

Yes, but beore you do so you should rememberthat the plan is designed to run or the ull 5-yearterm. I you do decide to encash you should writeto us with instructions to sell the plan investmentsand to send the net proceeds to you or another planmanager. We will usually be able to complete yourinstructions within 28 days. Te value o your

investment will be determined by the price atwhich we can sell the bonds held by your plan. Tiswill depend on a number o things, includingprevailing interest rates, the perormance o thethree indices and the limited secondary market inthe bonds. Tere will be an administration chargeo 150 (+ VA), which may increase by the RetailPrice Index (RPI) in the uture.

Can I transer my ISA or PEP to a new manager?

Yes, you can ask us to transer your ISA or PEP toanother manager at any time. I you decide to do soduring the term o the plan we will encash the Bondsyou hold on the terms outlined in Can I cash in myinvestment beore maturity above. ransers toanother plan manager beore maturity will incur anadditional administration charge o 100 (plusVA), which may increase by RPI in the uture. Iyou wish to transer the proceeds at maturity toanother Plan Manager there will not be a transer ee.

What do I do i I am not happy with the wayyou are dealing with my plan?

We will do our best to meet our high standards ocustomer care but i we ail to do so, please let usknow. I we do not deal with your concerns you canmake a complaint. We have a written complaintprocedure and you can ask us or a copy o this at anytime. I you are not happy with how we deal with

your complaint, you can complain to the FinancialOmbudsman Service at South Quay Plaza, 183Marsh Wall, London E14 9SR. Making a complaintwill not aect your right to take legal action.

Please reer to the erms and Conditions orinormation regarding the Financial ServicesCompensation Scheme.

Will you advise me whether the Plan is suitable for me?

No, we do not give you any advice as to whether thePlan is suitable or your own specic circumstanc-es. I you do need such advice, or guidance on tax,you should consult an authorised nancial adviser.


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1

FurtherInormation

Te Financial Services Authority (FSA) is anindependent body set-up by the Government toregulate nancial services. It publishes a range oactsheets and helpul inormation or consumers.As the high level o income payable rom this

investment is at the expense o placing your origi-nal capital at risk it is important that you under-stand and accept these risks beore you invest.

o assist you we have re-produced below someinormation rom the FSA actsheet Capital-at-risk-products the actsheet generally explains howcapital-at-risk products work and describes therisks that can be associated with them. You canalso contact the FSA on the FSA ConsumerHelpline on 0845 606 123 or visit their website at

www.sa.gov.uk/consumer

Whatarecapital-at-riskproducts?

Tese are usually share-based investments rombanking, insurance or investment managementrms, and can oer attractive returns. Yourinvestment could do as well as planned, or maybebetter. But i it does not, you could lose some or all

o the money you put in (your capital). Capital-at-risk products usually invest in a variety o stock-market investments such as shares or debt securi-ties. Debt securities include corporate bondswhich are loans to organisations such as compa-nies or the government.

Products that put your capital at risk include:

Stockmrket - bsed ivestmets. Tese icudecoective ivestmet schemes (such s oe-eded ivestmet comies (OEICs) d uittrusts) d ivestmet trusts;

ivestmet bods d uds tht ivest i debtsecurities, such s cororte bod uds; d

ivestmets iked to the erormce o stock-mrket or some other ctor such s coectioo shres. Tese re usuy or xed umber oyers (the term) d c be rrged to ro-

vide icome or growth or combitio o both.As an alternative, you could invest directly in:

shres, d so beet rom y divideds id; or

debt securities, or which you get xed or vri-be iterest.

But the value o direct holdings o shares and othersecurities can change sharply down as well as up.

Depending on its particular terms and conditions,

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the value o an investment product linked directlyor indirectly to the stockmarket may have lesser,similar or greater risk.

Howdodiferentcapital-at-riskprod-uctsusuallywork?

Stockmarket-based investments

A wide range o stockmarket-based investments isavailable. Te perormance o the investmentsdepends on the investment strategy adopted andgeneral stockmarket conditions. Te value ostockmarket-based investments can alter sharplybecause they are linked to the perormance o the

underlying shares or bonds (ie what your money isactually invested in).

Investment bonds and unds that invest in debtsecurities

Tese vary widely and include distribution bonds,with-prots bonds, unit-linked bonds and corpo-rate bond unds. Te money you invest is usuallyput directly into the stockmarket (in London or

overseas) or into xed or variable interest unds.

Investments linked to an index or other actor

With some xed-term products, repayment o thecapital to the investor (in ull or in part) is linked bya special pre-set ormula to the perormance o anindex such as the FSE 100 or maybe a combina-tion o indexes or some other actor such as theperormance o a collection o shares. We call themstructured capital-at-risk products. Some oer a

specied level o income over a xed period, whileothers oer growth that depends on the perorm-ance o an index or other actor (see the examplesbelow). Tese products, and the risks involved, canvary widely. For example, some may involve gearing(the use o borrowing that can increase the amountyou get back but will also increase the risks). Otherscan provide some element o capital protection.

An example o a structured growth product is onethat oers 30% growth over ve years, but also

states that i the FSE 100 index alls by morethan 20% at the end o this period, then yourcapital is reduced by 1% or each 1% all in theindex. So i ater ve years the index ell by 50%,someone who invested 5,000 would still receive

30% as growth (1,500) but the capital would havereduced to 2,500. So you would only get 4,000rom your original investment o 5,000.

An example o a structured income product is onethat oers 6% income a year or ve years, but alsostates that i the FSE 100 index alls at the end othis period, the capital is reduced by 2% or each1% all in the index. So i ater ve years the indexell by 25%, someone who invested 5,000 wouldstill have received 6% income a year over the ve

years (a total o 1,500) but the capital would havereduced to 2,500. So you would only get 4,000rom your original investment o 5,000.

Whatarethemainrisksinvolvedwithcapital-at-riskproducts?

Your cit c beow the mout youut i. Tis oss my sigicty icrese i theroduct structure ivoves gerig (see bove);so s i the idex to which the ivestmet isiked c resut i eve greter reductio ithe cit you ivested.

Te rte o retur dvertised might be chievedoy ter set eriod erhs ve yers; youmy ot kow uti tht dte how we yourivestmet hs erormed.

Te rte o retur you get my deed o seciccoditios beig met. Eve roessios my ot

be be to judge ccurtey how ikey tht wi be.I you tke your moey out ery, you my getess th you ut i: or exme, there my be ety to be id.

Pointstothinkaboutbeoreinvesting

What is the diference between a capital-at-riskproduct and a savings account?

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15

When you put your money in a bank or buildingsociety savings account, its original value doesntchange and you also get interest. Te return will becomparatively low, which reects the act that youhavent risked your capital. With capital-at-risk

products you may get higher returns, but you areputting your capital at risk and may end up withless than you put in.

How do I know which product to choose?

Consider your nancial needs careully: how much i anything can you aord to lose? And or howlong can you aord to have your money tied up? Doyour homework: shop around. Dont just look at

headline inormation, check the detail. Capital-at-risk products are not right or you i you cantaord to lose money. But i you are willing to takerisks to benet rom potentially higher rewards,there are many products to look at.

What charges do I have to pay or these products?

Te charges vary and there may or may not be any. Ithere are charges, make sure you understand how they

aect the value o your capital and income. Someunds deduct them rom your initial investment. Teymay also take charges yearly, usually as a percentage othe total value o your ongoing investment.

How long will my money be tied up?

With most investments you should expect to tie upyour money or some time. Some capital-at-riskproducts oer returns i you leave your capital with

them or a xed number o years. Other invest-ments can continue indenitely.

Can I cash in my investment?

Yes, you can usually cash in. But with some prod-ucts you have to pay a penalty (known as a redemp-tion penalty) i you cash them in beore the matu-rity date. As a rule, never tie up money you mayneed in the short or medium term.

I the investment period is xed, what happensat the end o it?

At the end o a xed period your investment will

mature and you should get its maturity value. Butthe maturity value may be reduced by charges or anal adjustment i, or example, it depends on thevalue o an index. Depending on the terms andconditions o the product, you could end up losingsome or all o your capital. Also, any income orgrowth you have received may be subject to tax.

Will I get the advertised rate o return?

Tis depends on the terms and conditions underwhich you have invested. Oten the advertised ratemerely illustrates what is possible, and is no morecertain than that.

Checklist

Decide how important it is to keep your capitalintact.

Remember that many investments are meant orthe long term and are not or savings you may needquickly.

Remember: capital-at-risk products should usuallyorm only part o your total portolio o savings andinvestments; and the value o such investments (andthe income or growth rom them) may all as wellas rise.

Take advice i you are unsure whether or not aninvestment is right or you.

Remember its your money, and your decision as towhat to do with it.

Dont invest unless you ully understand whatyoure investing in.

Dont run a risk you cant aford.


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16

ermsandConditionsTese erms and Conditions apply to the ArcCapital & Income Fixed Income Plan 2 (Te Plan)

1.Denitions

Application Form Te relevant orm that mustbe correctly completed, or an ISA, a PEP or aDirect Investment to be opened.

Business Day any day other than a Saturday,Sunday, bank holiday or other UK public holiday.

Direct investment any part o the plan that isnot an ISA or a PEP.

ISA a Mini or Maxi Individual Savings Accountset up in line with these erms and Conditions and

the Regulations.PEP a Personal Equity Plan set up in line withthese erms and Conditions and the Regulations.

Plan ISA, PEP or Direct Investment, as de-scribed in the brochure and made up o securities(investments) and cash that we handle on yourbehal.

Regulations Te Individual Savings AccountRegulations and Te PEP Regulations, as amend-

ed rom time to time (the Regulations). I there

are any dierences between the Regulations andthese erms and Conditions, the Regulations willapply.

Securities Te underlying qualiying invest-ments o the Plan, arranged to provide the invest-ments and capital returns set out in the Planbrochure.

Subscription any amount paid by you into yourPlan.

We, us, our Arc Capital and Income plc. TeCompany is authorised and regulated by the Finan-cial Services Authority (FSA) and must ollow itsrules, as amended rom time to time (the Rules).I there are any dierences between the Rules andthese erms and Conditions the Rules will apply.

You, your the investment holder(s) named on theApplication Form.

.Servicesweprovide

a. We will be responsible or buying and selling allinvestments. We will carry out transactions on termsthat are at least as avourable as those that we can setwhen dealing directly with the market maker.

b. Tere may be times when we, or one o ourclients, have some kind o interest in the transac-

tion that is being carried out. I this happens, or we


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become aware that our interest or that o our otherclients conicts with your interest we will tell you,and ask your permission, beore any transaction iscarried out.

.YourApplication

a. We may accept a completed Application Formand Subscription rom you under the terms o thisAgreement. We have the right to reject an applica-tion or any reason.

b. You must invest in the ISA with your own cash orby transerring cash rom an existing ISA. You caninvest in the PEP account only by transerring cashrom an existing PEP. ransers o existing PEPsand ISAs will normally be arranged with the exist-ing PEP or ISA Manager. Once the PEP or ISA hasbeen transerred and received by us, these ermsand Conditions will apply to your PEP or ISA.

c. By completing the Application Form, youinstruct us to choose and buy Securities that havebeen designed to provide the benets o the plan asdescribed in the Plan brochure.

d. I we have to cancel or void your ISA under theRegulations, you authorise us to hold your Securi-ties outside the ISA as a Direct Investment. Insuch an event these erms and Conditions will

continue to apply to your Plan as a Direct Invest-

ment. In particular you may have to pay tax. I wehave to void your ISA because you are not eligibleto apply or the ISA we have the right to deductany costs or expenses.

e. I your Plan is a PEP or an ISA and you live inthe UK, you will not, under current tax rules, haveto pay UK income tax or UK capital gains tax onthe prot rom the Plan but any losses on your

Plan will be ignored or the purposes o UK capitalgains tax.

. I your Plan is a Direct Investment you may,depending on your circumstances, have to pay taxon any interest, income or dividends you receiveand/or on any capital gain rom selling the Plan.

g. Te taxation statements in Conditions 3b, 3d, 3eand 3 are based on our understanding o currenttax legislation, regulation and practice. Such taxlegislation, regulation and practice are subject tochange in the uture.

4.Basisodealing

a. We, or our associated companies, may chooseand instruct brokers or dealers (including associ-ated companies) to buy, sell and deal in Securitiesor your Plan. Or, we may do so ourselves aslicensed dealers or brokers.

b. We may keep all commissions or prots arising

rom those transactions. Your Plan will be debited


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1

immediately we buy investments on your behal.We do not have to account or any interest earnedpending settlements i.e. interest we earn on cash wehold while we are waiting to pay or Securities wehave bought or pay you or Securities we have sold.

c. Te amount(s) we commit to invest in Securities

to be held in your Plan will not extend beyond theamount o cash and investments placed by youunder our control.

d. We will be acting as your agent in arranging tobuy these Securities. We acknowledge and conrmon behal o any issuer o such securities, its afli-ates and directors (together known as the Issuer)that we do not act as agent or the Issuer and thatany oer o Securities is not authorised by anyissuer and is made without the Issuers knowledge

or approval beore hand.

e. We may combine your order with orders o otherclients when processing them. I this results in us get-ting a number o transactions at dierent prices, allclients involved in the transactions will pay or receivethe same average price. I you ask us to, we willprovide details o how we work out the average price.

. I, or any reason, we are unable to purchase securi-ties to ull the commitments set out in the bro-chure your Subscription will be returned to you,with any interest accrued to the date o repayment.

g. In the event o any issuer becoming unable tomeet its obligations to repay the amounts due youcould lose some, or all, o your Subscription.

5.Yourrighttochangeyourmind

a. We will give you the right to cancel your Planwithin 14 days o receiving rom us a notice o yourright to change your mind.

b. I we have bought Securities beore we receiveyour completed cancellation request the amountyou will receive may be less than the amount oyour Subscription, i the price at which we sell theSecurities is less than the price you paid or them.

c. I you cancel a PEP or ISA transer applicationand do not tell us at that time the name o anotherPlan Manager you want to transer the investment

to we will turn your investment back into cash and

send it to you. Tis means that the PEP or ISAstatus o the investment will no longer apply.

6.Cashheld

a. You may invest into the Plan only in line withthe published terms.

b. We hold all money belonging to clients in aseparate client account, which is identied as atrust account. All clients money is separated romthe unds belonging to us. We will hold yourSubscription in our client account until we make apayment on your behal to purchase the Securitiesto be held in the Plan. At maturity, or earlierredemption o the Securities, we will hold theproceeds in the client account, pending reinvest-ment o the proceeds in a new Plan with us; or the

payment o the proceeds to you, or the transer othe proceeds to a new PEP or ISA Manager.

c. We will invest money held in an account insecurities in line with the requirements o theregulations and the rules o the FSA.

d. We will remind you periodically i we hold cashwithin an ISA or PEP pending reinvestment. Isuch cash is held or a long period the HM Rev-enue and Customs could void the PEP or ISAstatus o the investment.

.TePlanInvestments

a. All Securities allocated to your Plan will beregistered in the name o, and kept in the custody o,Arc Nominees Limited (a totally-owned non-tradingsubsidiary o Arc Capital & Income plc). Arc Nomi-nees Limited is not itsel authorised under theFinancial Services and Markets Act 2000, but we

accept responsibility or its acts and omissions.b. We will not lend documents o title to any otherperson and money may not be borrowed on yourbehal against the security o these documents.

c. You will be the benecial owner o the Securitiesand o any cash held in the Plan.

d. Unless you tell us otherwise, we may (i the Regu-lations allow) make arrangements, when appropriate,to use the voting rights o your Securities.


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1

e. Prior to maturity o the Plan we will contact youto explain the various options available to you atthat time.

.Charges

a. We will not deduct any charges, ees or expensesrom the Plan. However, the terms on which wewill purchase the securities on your behal willreect certain charges, ees and expenses. Tis willnot aect the calculation o returns described inthe Plan brochure.

b. I you encash your Plan beore the maturity date,as set out in the Plan brochure, there will be anadministration charge o, 150.00 plus VA.

c. I your Plan is a PEP or an ISA and you transerits value to another Plan Manager during the termo the Plan there will be an additional transercharge o 100 plus VA.

d. We reserve the right to increase the currentcharges set out in Conditions 8b & 8c in line withrises in the Retail Prices Index.

.Keepingyouinormed

a. We will send you an acknowledgement o yourApplication Form within ve working days o receipt.

b. We will send you an Initial ransaction State-ment, setting out details o the purchase o securi-ties or your Plan.

c. We will give you a report and valuation o yourplan investments at yearly intervals, as set out inthe brochure.

d. I you ask, you will receive any inormation weissue to holders o the securities in which you invest.I you ask us to, we also invite you to vote at meet-ings. I you want to go to meetings in person, we willtry to arrange this. We have the right to make areasonable charge or providing these extra services.

e. Where a certicate or other document evidenc-ing title to securities or other qualiying invest-ments is issued it will be held by us or as we direct.

. At all times you, or your nominated agent, can

ask to see all entries in our records relating to anytransactions relating to your Plan. We will main-tain these records or at least six years ater thetransaction date.

g. All inormation and correspondence may beprovided in electronic ormat via email and/or web

services. We may oer alternative media orinormation and correspondence rom time to time.

1.ransers

a. You have the right to transer your PEP or ISAto another PEP or ISA Manager at any time.

b. You must make any request to transer in writing.

c. I you elect to transer prior to the maturity dateo the Plan, as dened in the Plan brochure, thesale o the Securities you hold will be carried out asdescribed in Conditions 11a & 11b. Te chargesoutlined in Condition 8b & 8c will be deductedrom the sale proceeds beore payment to the newISA or PEP Manager.

d. You cannot transer part o your investment.

e. All transers will be subject to the Regulations.

11.ClosingyourPlan

a. You may close your Plan at any time by giving usyour written instructions. Tis will not aect anytransactions we have already started to carry out. Wewill sell the securities at the next dealing date andissue payment or the net proceeds. We will usuallycarry out this procedure within 28 business days

b. Te value o your investment will be determined

by the market price o your holdings as at the dateo sale. Te price may reect the limited market inthe securities.

c. Prior to closing your Plan or transerring itsvalue to another plan manager you should considerthat the Plan is designed to be held or the ullinvestment term.

d. We may end your Plan at any time in writing,by giving you notice. Tis will not aect anytransactions we have already started to carry out.


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e. Once this agreement has ended, we will not carryout any transactions, except to allow us to return theproceeds o the underlying securities or other qualiy-ing investments to you, or as specically requested byyou and subject to new terms and conditions.

1.Death

a. In the event o your death during the term o thePlan we will act on the instructions o your per-sonal representatives. I they elect to do so they areable to re-register the ownership o the Plan tomaintain it to its maturity date.

b. I your personal representatives elect to encash thePlan, the charge outlined in Condition 8(b) will apply.

c. I your Plan is a PEP or an ISA it will cease to beexempt rom tax rom the date o death.

1.PreventionoMoneyLaundering

a. o enable us to comply with the UK MoneyLaundering Regulations and the Rules we maycarry out electronic checks on your identity priorto buying or selling securities on your behal. Itmight be necessary or us to request, and or you toprovide, urther inormation as part o this process.

14.ProvidinginormationtotheHMRevenueandCustoms

a. You authorise us to give the HM Revenue andCustoms all relevant details o your ISA or PEP,which they may reasonably ask or at any time.

b. We will tell you i the ISA or PEP has or willbecome invalid.

15.Communicationsandunwantedcalls

a. We will usually only communicate with andreport to you in writing.

b. You give us permission to communicate by e-mail or to phone you i we need to do so but only ata reasonable hour.

16.Liability

a. We will carry out the duties described in theseterms using all reasonable care and skill, but willonly be liable to you or:

our egigece or deiberte rud, or tht o yssocited comies or y emoyees o oe ormore o those comies; or

brekig these terms or Fici Services

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1

Authority rue or Regutio. However, we wiot be ibe to you or hve y resosibiityo y kid or y oss or dmge you sufer s resut o y evet or circumstce tht is otresoby withi our cotro.

We will not be liable to you or any act or raud byany person, rm or company through or with whomtransactions are carried out on our behal (other

than any bankers, rms, companies or any employ-ees o companies who are associated companies).

b. We will not be liable or have any responsibility oany kind or any loss or damage you suer as aresult o any ailure, interruption or delay incarrying out our obligations resulting rom:

Brekdow or iure o y teecommuictiosor comuter service;

Idustri disutes;

Fiure o other eoe to crry out their obigtios;

Acts o govermets or itertio uthorities; or

Ay other evet or circumstce tht is ot re-soby withi our cotro.

c. By completing the declaration on the ApplicationForm you conrm that you have read the Planbrochure and any accompanying inormationsupplied by us relating to this Plan and understand

the nature o the investment.

*

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*

*

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1.Protectingyourrights

a. We are covered by the Financial Services Compen-sation Scheme. You may be entitled to compensationrom the scheme i we cannot meet our obligations.Tis would depend on the type o business and thecircumstances o the claim. Most types o investmentbusiness are covered or 100% o the rst 30,000,and 90% o the next 20,000, so the maximum

compensation is 48,000. You can get more inorma-tion about compensation arrangements rom theFinancial Services Compensation Scheme.

b. I the perormance o the investments does notmatch any illustrated benets, you will not, or thatreason alone, be entitled to any compensationunder the Financial Services CompensationScheme.

c. You may complain about any aspect o the

service you received to the Compliance Ofcer atthe address shown within the brochure . I you ask,we will send you written details o how we will dealwith your complaint. I you are not happy withhow we have dealt with your complaint, you cancomplain to the Financial Ombudsman Service atSouth Quay Plaza II, 183 Marsh Wall, LondonE14 9SR. Making a complaint will not aect yourright to take legal action.


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d. We maintain insurance cover to indemniyclients against (among other things) any o ouremployees dishonestly using unds or securities orother qualiying investments.

1.Governinglaw

a. Tis Agreement will be governed by English lawand will come into orce when we receive yoursigned Application Form or a Plan.

1.Enorcement

a. Should any o these erms be held to be unen-orceable the validity and enorceability o theremaining provisions shall not be aected and theunenorceable provision will be replaced by an

enorceable provision which comes closest to theintention underlying the unenorceable provisionand which is o similar economic eect.

b. Our ailure to enorce any provision o these ermsand Conditions will not constitute a waiver o ourright to subsequently enorce such provision or anyother provision o these erms. None o our employ-ees, ofcers or agents may verbally alter, modiy orwaive any provision o these erms and Conditions.

.DataProtectionstatement

a. We may hold personal and nancial inormationon computer and manual systems and use this to:

Hde d service your ivestmet; d

Put together sttistics or ssessmet d ysis.

b. We may make your personal and nancialinormation available:

o other Associted Comies (s deed iSectio o the Icome d Corortioxes Act ) to rocess this ictio (weor they my cotct you by mi, hoe or e-miwith roducts or services tht my iterest you);

o your ci dviser by e-mi or othermes, icudig secure iteret service;

As we re obiged to uder the requiremets oy w, regutio or court order tht we must

oow; d

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o you i you sk d i ie with the Dt Pro-tectio Act .

1.AmendmenttotheseermsandConditions

a. We may vary these erms and Conditions romtime to time by giving you at least one monthsnotice o such change.

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23/28

Arc Fixed Icome plan application formCapital & Income

Forextraapplications,simplyphotocopythisorm.1.Yourdetails

ite (Mr,Mrs, Miss, Ms):

Surme:

Fu rst mes:

Dte o birth:

Permet home ddress:

Postcode:

Phoe umber:

E-mi ddress:

For joint applications in direct investments only, please ll in the details o the joint

applicant here.


Surme:

Fu rst mes:

Dte o birth:

.Nationalinsurancenumber

Do you have a National Insurance (NI) number? Yes No

I Yes, you must write it here. You should be able to nd your NI number on a payslip, orm

P45 or P60, letter rom the HMRC, letter rom the Benets Agency, or pension order book.

.Investment

Direct investment:(minimum 4,000).

ISA or 2007/2008:

I apply to invest 4,000 in a Mini ISA, or 7,000 in a Maxi

ISA. (Please cross out the one that doesnt apply.)

Mini

,

Maxi

,

Total investment

Please make your cheque payable to Arc Capital and Income

plc Client Account. I you are sending us a building societycheque, it should be payable to Arc Capital and Income plc

Client Account reerence (your name).

Please select plan type Monthly Income Annual Income

Please complete the details and ensure that they are correc t. Income payments can ONLY

be made via t he BACs system:

Bk/Buidig Society:

Dte o birth:

Address:

Postcode:

Accout me:

Account Number:

Sort Code:

Building Society Reerence or Roll Number

4.Password

For security purposes, please provide us with a pa ssword so we can give you inormationover the phone or give you access to our web-based services.

5.Haveyoureceivednancialadvice?

Please indicate below i you have received nancial advice relating to this investment.I have received nancial advice rom an independent nanci al adviser

6.Declarationandauthority

I declare I am 18 years o age or over and that I am not, and am not acting on the behal o,a

resident o the United States; and that I will not assist any person who is so resident to acquiresecurities in the Plan. Further I agree to inorm you immediately should I become a resident o theUnited States. I conrm adherence to the requirements contained in the erms and Conditions.

Applicable to all ISA Applicants: I declare that: a. all subscriptions made belong to me; b. Iam 18 years o age or older; c. I I am applying to subscribe to a Mini stocks and shares ISA, Ihave not subscribed and will not subscribe to a Maxi ISA or another stocks and shares MiniISA in the same tax year; or i I am applying to subscribe to a Maxi ISA I have not subscribedand will not subscribe to another ISA other than a ESSA only ISA in the same tax year; d. Iam resident and ordinarily resident in the United Kingdom or tax purposes or, i not so resi-dent, either perorm duties which, by virtue o section 28 o Income ax (Earnings & Pen-sions) Act 2003 (Crown employees serving overseas), are treated as being perormed in theUnited Kingdom, or, I am married to, or in a civil partnership with, a person who perormssuch duties. I will inorm Arc Capital and Income plc immediately i I cease to be so residentand ordinarily resident or to perorm such duties, or to be married to, or in a civil partnershipwith, a person who perorms such duties; e. I will inorm Arc Capital and Income plc withoutdelay o any change in my circumstances aecting any o the inormation in this orm.

I authorise Arc Capital and Income plc: a. to hold my cash subscription, Direct investments,

ISA Investments, interest, dividends and other rights or proceeds in respect o those invest-ments and any cash or other proceeds; b. to make on my behal any claims to relie rom tax inrespect o ISA investments.

I have read and understood the Arc Capital and Income Fixed Income Plan 2 Brochureand Terms & Conditions and accept the terms under which my investments will bemanaged. I declare that this application orm has been completed to the best o myknowledge and belie. I understand that Arc Capital and Income does not provideinvestment advice and conrm that I either do not require such advice or have received

advice on this investment rom an Independent Financial Adviser.

Sigture:

Dte:

Joit sigtures(direct ivestmets oy):

Dte:

Note: When you have lled in and signed this application orm, please ret urn it to yournancial adviser or to Arc Capital and Income plc, 22 Lovat Lane, L ondon, EC3R 8EB

Fornancialadvisersuseonly

Fici dviser:

FSA umber:

Nme o dviser:

Verication o IdentityI conrm that I have carried out the appropriate identity check s and attach the Verica-

tion o Identity Certicate. I have enclosed signed copies o the documentary evidence

with this certi cate. I have seen the original documents and any that need a sig nature werealready signed.

Siged o beh o the bove:


22 Lovat LaneLondonEC3R 8EB

el: 0845 890 8915Fax: 0845 890 8916

E-mail: [email protected]: www.arccapital.co.uk

June2007


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25/28

Arc Fixed Icome plan transfer application formCapital & Income

Youneedtouseaseparateapplicationormoreach

PEPorISAyouwanttotranser.Youmayphotocopythisorm,ororurtherPEPandISAransers.1.Yourdetails


Surme:

Fu rst mes:

Dte o birth:

Permet home ddress:

Postcode:

Phoe umber:

E-mi ddress:

.Nationalinsurancenumber

Do you have a National Insurance (NI) number? Yes No

I Yes, you must write it here. You should be able to nd your NI number on a payslip, ormP45 or P60, letter rom the HMRC, letter rom the Benets Agency, or pension order book.

.Investment

Please select plan type Monthly Income Annual Income

Please complete the details and ensure that they are correc t. Income payments can ONLYbe made via t he BACs system:

Bk/Buidig Society:

Dte o birth:

Address:

Postcode:

Accout me:

Account Number:

Sort Code:

Building Society Reerence or Roll Number

4.PasswordFor security purposes, please provide us with a pa ssword so we can give you inormation

over the phone or give you access to our web-based services.

5.Haveyoureceivednancialadvice?Please indicate below i you have received nancial advice relating to this investment.I have received nancial advice rom an independent nanci al adviser

6.Declarationandauthoritya. I instruct the PEP/ISA manager to sell my existing PEP/ISA assets in accordance with thePEP/ISA transer request orms, and transer the amounts realised to Arc Capital and Income plcto invest in the Arc Fixed Income Plan 2.b. I authorise the PEP/ISA Manager to hold my cash subscriptions, Plan investments, interest,dividends and any other rights or proceeds in respect o those investments and any other cash andto make on my behal any claims to relie rom tax in respect o Plan investments, and on my writ-ten request to transer or pay to me,as the case may be,Plan investments, interest,dividend rightsor other proceeds in respect o such investments or any cash.

c. I declare that the inormation given in this declaration is true and correct to the best o myknowledge and belie and that I will inorm the PEP/ISA Manager without delay o any change inmy circumstances aecting any o the inormation in this orm.d. I declare that I have read and understood the brochure and terms and conditions and I agreeto the terms and conditions under which my investment will be managed. I understand that ArcCapital and Income does not provide investment advice and conrm that I either do not requiresuch advice or have received advice on this investment rom an Independent Financial Adviser.

Sigture:

Dte:

Joit sigtures(direct ivestmets oy):

Dte:Note: When you have lled in and signed this application orm, please ret urn it to your

nancial adviser or to Arc Capital and Income plc, 22 Lovat Lane, L ondon, EC3R 8EB

Fornancialadvisersuseonly

Fici dviser:

FSA umber:

Nme o dviser:

Verication o IdentityI conrm that I have carried out the appropriate identity check s and attach the Verica-tion o Identity Certicate. I have enclosed signed copies o the documentary evidencewith this certi cate. I have seen the original documents and any that need a sig nature werealready signed.

Siged o beh o the bove:



el: 0845 890 8915Fax: 0845 890 8916


ExistingPEPorISAtranserrequestI conrm that I am transerri ng a: (Please tick one box only)

PEP Stocks and shares ISA: Mini Maxi


Surme:

Fu rst mes:

Dte o birth:

Permet home ddress d ostcode:

Nme o existig PEP or ISA d ddress o the mger:

Surme:P mgers hoe umber:

Accout umber o the PEP or ISA:

Aroximte vue:

Existing PEP or ISA plan manager instructions1. I instruct the manager o the PEP or ISA shown above to give you any inormation you mayneed or the plan, sell any PEP or ISA assets and send a cheque or the proceeds to Arc Capitaland Income plc Client Account, 22 Lovat Lane, London EC3R 8EB, United Kingdom. I thereis a problem, please contact us on 0845 890 8915.2. All dividends, interest, and tax credits arising ater the transer, should be made payable to me.

Sigture Dte

June2007


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el: 0845 890 8915Fax: 0845 890 8916


Arc Cit & Icome c is uthorised d reguted bythe Fici Services Authority.

Issued by Arc Cit & Icome c which is rt o theArc Fud Mgemet Hodigs c grou

Augut 2007

monza fixed income

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