rbc counterparty to uk retail structured product

Royal Bank of Canada is to act as the counterparty to Meteor AM’s latest Prima Platinum Plan, its first foray into the UK retail structured product arena.

rbc counterparty to uk retail structured product

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Prima Platinum Plan 16 will be available until 25 April and is linked to the performance of the FTSE 100 and S&P 500 indices. Besides the counterparty risk – RBC has a long-term credit rating of AA- from Standard & Poor’s – capital is at risk if either index closes more than 50% lower than its opening level at any close-of-business day during the investment term.

The strike date is 27 April, 2012, with the final level as at 27 April, 2017, with a maturity date of 12 May 2017. There are four annual measurement dates, starting on 29 April next year, at which point the plan will mature and pay 10% (gross) for each year the plan has been running if the FTSE 100 and S&P 500 are both above their opening level.

The plan has a five-year term and if it runs to maturity and the indices are at least equal to their opening level, the investment return will be 50%. If one or both indices are lower, there will be no investment return.

Capital return should the indices fall will reduce depending how far the indices fall.