structured capital-at-risk product

a product, other than a derivative, which provides an agreed level of income or growth over a specified investment period and displays the following characteristics:

1. (a) the customer is exposed to a range of outcomes in respect of the return of initial capital invested;
2. (b) the return of initial capital invested at the end of the investment period is linked by a pre-set formula to the performance of an index, a combination of indices, a 'basket' of selected stocks (typically from an index or indices), or other factor or combination of factors; and
3. (c) if the performance in (b) is within specified limits, repayment of initial capital invested occurs but if not, the customer could lose some or all of the initial capital invested.20