Structured Products Frequently Asked Questions

A structured product is a fixed term investment with a payout that is linked to the performance of an underlying reference asset, i.e. a stock index, basket of commodities etc.

For an overview of our regular structured solutions please visit Structured Products Explained.

Cater Allen structured products are available to individuals, limited companies, trusts including pension trusts, life offices and platforms.  The Plans are usually available as a Direct Investment, Cash ISA or Cash ISA transfer, or within a SIPP, SSAS or Offshore Bond, although this may vary and you should refer to the Term Sheet specific to each Plan.  

The minimum investment varies by Plan with the lowest level available on some Plans being the current 2011/12 tax year annual Cash ISA limit of £5,340.

We would suggest that a structured product is not suitable for the elderly or those of ill health due to the nature of the Plan being intended to run to maturity. Our Plans are also not suitable for clients who may need access to their funds before maturity as early closure may result in your client getting back less than they paid in. Please see the Product Guide specific to each Plan for full details.  Direct clients should always seek advice from a professional financial adviser.

Cater Allen structured products are designed to provide the highest level of security that we can and are generally classed as very low risk (Please see the Product Guide specific to each Plan for details). Plans that are ‘deposit based’ hold funds on deposit with Cater Allen Private Bank and our ‘100% Capital Protected Plans’ returned the Original Investment in full at maturity (future plans may vary, please see Term Sheet specific to each Plan).  It is the Original Investment and minimum return (if any) that has protection at maturity and this protection depends on the continued solvency of Santander UK plc.  Cater Allen also operates under its own banking licence and so deposits held with Cater Allen are covered by the maximum individual amount under the Financial Services Compensation Scheme (FSCS) separately from your client’s other deposits within the Santander group.  See Cater Allen Financial Security for more details.

A FTSE 100 linked structured product allows a client to have some certitude around the parameters of the return he will receive, as well as a  greater degree of capital protection. It also means that the return is based on the entire composition of the FTSE 100 Index which may offer less volatility and risk than choosing to invest in individual companies (which could cease to exist).

The offer period of a Cater Allen structured product Plan is usually around 8 weeks, although this varies by Plan so please refer to the Term Sheet specific to each Plan. A Plan may also close earlier than the published date if it is sold out.

Cater Allen currently pays a standard 300 basis points on our structured products, although commission rates may vary at our discretion. The commission rate applicable to each Plan is set out in the Plan specific Term Sheet.

When the application for a Plan is accepted, your client will receive a notice from us advising that they have the right to cancel the Plan within 14 days of receipt of that notice. Your client can cancel the Plan during the Cancellation Period. Please see the Plan specific Product Guide for more details.

Cater Allen structured product Plans are designed to be held to maturity.  If your client does have to cash in the Plan earlier than the Maturity Date they may get back less than the Original Investment. There is also a charge of £50 plus VAT if your client withdraws before the Maturity Date (unless you cancel the Plan during the Cancellation Period). Early withdrawal from a Plan may also incur further charges based on market conditions at the time of withdrawal. You and your client should review the Product Guide for each Plan to understand early withdrawal in full.

Upon receipt of an application “Confirmation of Receipt of Application” letters will be sent to both you and your client, followed by a “Commencement” Letter when the funds have been invested into the Plan at the Commencement Date. Annual valuation letters are also sent to you and your client.

No, our structured products are currently available for sterling investment only, although we may be able to provide a bespoke solution for very large investments into a Plan and these will be handled on a case by case basis.  Please call your relationship manager if you need to discuss this.