Merchant launches FTSE 100 kick out plan

Merchant Capital has launched its first kick out plan since establishing a structured product business earlier this year.

From year two, on each anniversary date the six-year plan offers a growth payment of 8.55% and early redemption if the FTSE 100 is equal to or greater than its starting level. If the index is not at this level, the plan continues. The maximum payout is 51.3%.

Capital is at risk if the daily closing level of the index falls 50% or more below its initial
level during the investment term, and fails to recover to its initial level at the end of the term.

Barclays Bank serves as counterparty for the plan.

The plan is open for investment until 23 April 2010, set at a minimum of £3,000. It is open for ISA, SSAS and SIPP, with commission available for IFAs.

Merchant launched its structured investment business at the start of January. At the same time it took over the administration of Arc Capital investments worth around £100m and involving 10,000 investors.

Merchant has now launched three structured products including its Income plan and Growth plan: Twin Win.