Arc Capital & Income plc

Arc Fixed Income

plan 2
9.00% annual or 0.73% monthly income.
A product designed to pay an annual or monthly
Capital & Income
income backed by a major financial institution.

Key Benefits
5 annual payments of 9.00% or 60
monthly payments of 0.73%
100% capital return even if all three
indices have fallen by up to 30%
Tax free for PEP/ISA investments
Invest between £4,000 and £2 million
to secure the income benefits
A 5 years and 1 week investment
No additional charges, fees or deduc-
tions for all investments maintained to
maturity
All Plan investments issued by a major
financial institution
Arc Capital & Income
– Fixed Income Plan
The Plan is a five year investment and is designed
to provide a choice of annual or monthly income
which is payable irrespective of stockmarket
performance. The return of capital at the end of
the term is dependent on the performance of the
FTSE 100, S&P500 and Nikkei 225 so is not
guaranteed, but the Plan does provide some
protection if these indices do fall (see Calculating
the capital return on page 3).
This product can help in improving the income
you receive from your capital and can represent an
appropriate way of investing part of your capital
providing you are comfortable with the investment
risks.

What happens to your capital?
Your money will be used to purchase a bond issued
by a Standard & Poor’s “A+” rated financial institu-
tion, who utilises a range of financial instruments to
provide exactly the returns explained in this bro-
chure. You should only consider this investment if
you are prepared to accept a degree of risk to your
capital and, as the plan is designed to be held for the
full investment period, do not require access to your
money during the investment term.
Why Arc Capital & Income?
Arc Capital & Income plc (“ACI”) has been develop-
ing and offering structured products, such as the
Bull & Bear Tracker Plan since 1997, and has
approximately £120 million under management.
ACI is part of the Arc Fund Management Holdings
plc, an AIM quoted investment company.
Income Options
5 Annual 60 Monthly
Payments of Payments of
9.00% 0.73%
Commencing on
or
Commencing on
31 October 2008
with a final payment
30 November 2007
with a final payment
on 31 October 2012 on 31 October 2012
Income paid gross
Tax Free income for ISAs and PEPs
ISAs – Maxi ISA Invest via a maxi ISA for the
2007/08 tax year. By investing the maximum
£7,000 through an ISA you can look forward to a
tax free income of £630.00 per annum or £51.10
per month.
ISAs – Mini ISA Invest via a mini ISA for the
2007/08 tax year. By investing the maximum
£4,000 through a mini ISA you can look forward
to a tax free income of £360 each year or annum or
£29.20 per month.
PEP/ISA Transfers – Transfer all or some of
your existing investments in to the Plan with no
maximum limit on the size of your investment
(minimum £4,000). All income will be tax free.
Your existing manager may charge an exit fee, and
the value of transferred assets may fall or rise while
the transfer is being arranged.
Direct Investment – Invest between £4,000
(minimum) and £2 million (maximum). Income
arising from the Plan is paid gross. Basic rate
taxpayers are liable to 20% tax and 40% for higher
rate taxpayers.
level on 31 October 2007 and the Final Level will
be its close of business level on 31 October 2012.
Calculating the Capital Return
The return of capital is dependent upon the per-
formance of the FTSE 100, S&P 500 and the
Nikkei 225.
There will be a 100% return of capital if
* no index falls by more than 30% from its Initial
Level during the investment term; OR
* the Final Level of each index is equal to or above
its Initial Level

Check out the net Income returns available

Investment Investment Gross After Basic Rate tax (20%) After Higher Rate tax (40%)
Amount Route Monthly Annual Monthly Annual Monthly Annual

£4000 Mini ISA £29.20 £360.00 £23.36 £288.00 £17.52 £216.00

£7,000 Maxi ISA £51.10 £630.00 £40.88 £504.00 £30.66 £378.00

£10,000 PEP/ISA £73.00 £900.00 £58.40 £720.00 £43.80 £540.00

£10,000 Direct £73.00 £900.00 £58.40 £720.00 £43.80 £540.00

£25,000 Direct £182.50 £2,250.00 £146.00 £1,800.00 £109.50 £1,350.00

£50,000 Direct £365.00 £4,500.00 £292.00 £3,600.00 £219.00 £2,700.00

£100,000 Direct £730.00 £9,000.00 £584.00 £7,200.00 £438.00 £5,400.00

£250,000 Direct £1,825.00 £22,500.00 £1,460.00 £18,000.00 £1,095.00 £13,500.00

No Stockmarket growth required A reduced capital return can only apply if

The income payments are not dependent on the
performance of the three indices. The Plan also
requires no growth in any of the indices in order to
return your original capital in full at the end of the
term.
A full return of capital will be paid at maturity as
long as no index falls by more than 30% from its
Initial Level on any day during the investment term
31 October 2007 to 31 October 2012. In this
event, the return of your capital could be affected
as described below.
For each index, the Initial Level will be its closing
* one or more of the indices falls by more than
30% from its Initial Level during the investment
term AND
* the final level of one or more index is below its
Initial Level
In this event your capital would be reduced with
reference to the lowest performing index. Any
capital reduction would be at the rate of 1% for
each 1% that the Final Level of the lowest perform-
ing index is below its Initial Level. Examples of
returns based on an investment of £10,000 are set
out overleaf:


 Annual Income at 9.00% Monthly Income at 0.73%
Index Measurement
Capital Income Total Capital Income Total

No index falls by more than 30% at any time during the investment term

The Final Level of each index is at or above

£10,000 £4,500 £14,500 £10,000 £4,380 £14,380
its Initial Level

The Final Level of one or more index is

£10,000 £4,500 £14,500 £10,000 £4,380 £14,380
below its Initial Level .

One or more index falls by more than 30% during the investment term

The Final Level of the lowest performing

£10,000 £4,500 £14,500 £10,000 £4,380 £14,380
index is at or above its Initial Level

The Final Level of the lowest performing

£8,000 £4,500 £12,500 £8,000 £4,380 £12,380
index is 80% of its Initial Level

The Final Level of the lowest performing

£5,500 £4,500 £10,000 £5,500 £4,380 £9,880
index is 55% of its Initial Level

IMPORTANT – please note suitable way of investing part of your investment

The information in the table is designed to provide
examples of the calculation of the total returns in
different circumstances. They are not a prediction
of how we think the indices will perform. The
capital return is not protected and there is a risk of
a capital loss. The overall return, including income,
could be less than your original investment. This
high income product can help you improve the
income you get from your capital and can be a
portfolio providing you are comfortable with the
investment risk. You should only consider this Plan
as part of your investment portfolio if you are
prepared to accept a degree of risk to all or part of
the capital invested.
As the Plan is designed to be held for the full
investment period you should only invest if you do
not require access to your funds during the 5 year
investment term. If you cash in early you may
receive back less than the original investment.


Your Plan will invest in a bond issued by a financial
institution with a “A+” Standard & Poor’s rating.
We consider it unlikely that such an institution will
not meet its obligations: If they were not to do so,
you may not get back all your original investment.

Key Dates
Investment date 31/10/2007 Maturity date: 07/11/12

Investment Period (31 October 2007 to 31 October 2012)

Offer period
(60 months with 30% downside protection from the Initial Level)

Closing date 24/10/07 Final level 31/10/12

All index measurements are taken at close of
business.
* PEP & ISA Transfers close – 17 October 2007
* New ISA application 2007/08 – 24 October 2007
* Direct Investments close – 24 October 2007
* Investment date – 31 October 2007
* Initial Levels – 31 October 2007
* Final Levels – 31 October 2012
* Maturity date  – 7 November 2012
Why should I consider investing in the
Arc Fixed Income Plan 2?
As we write, UK base rates have increased by
1.25% over the past 12 months and there is a strong
consensus among City analysts and supported by
the recent comments of Mervyn King, Governor of
the Bank of England, that a further ¼ point rise to
6% will be necessary to cool the economy, in
particular the housing market, and to temper
inflationary pressures.
The next rise is expected to be the last and, as can
be seen from the Spot Yield Curve below, interest


rates are then anticipated by the money markets to annual and 0.73% monthly return can be achieved.
gradually decline; over the life of the Arc Fixed Arc Capital & Income cannot therefore guarantee
Income Plan 2 by perhaps as much as ½%. that similar returns will be available in the future.

About the Indices

UK Spot Yield Curve
There are many global indices, which have been
(Source: Bank of England 8th August 2007)
developed to assist investors to follow the perform-
6.00
ance of world stock markets. These indices are
5.90
calculated by reputable financial institutions. They
5.80
are widely quoted and accepted as giving a fair
5.70
interest rate %

reflection of market movements.

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 6
years
The chart above describes the currently anticipated
progression of spot interest rates but it does not
reflect the rates investors receive on their deposits
with high street banks and building societies which
can be expected to be marginally lower, save for
short term and limited headline grabbing offerings.
Retail rates will inevitably reflect the downward
The charts below detail the performance of the
FTSE100, S&P 500 and Nikkei 225 indices since
inception of the FTSE 100 index in April 1984 and
are designed to emphasise the long term nature of
equity investment. You will note the tendency for
the FTSE 100 and S&P 500 to closely correspond
with each other over time. You should however bear
in mind that past performance of the Indices is not a
guide to how they will perform in the future.
FTSE 100
8,000
7,000
6,000

movement in wholesale money market interest 5,000

rates. 4,000
3,000
Regardless of what happens to prevailing market
rates, the Arc Plan will pay an annual income of 9% 2,000

or 0.73% monthly over its full 5 year term. Com- 1,000

pared to current high street rates, let alone the 0
reduced returns anticipated in the future, the Plan
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
is highly competitive. The extra return offered by
the Plan can only be achieved by the investor
accepting a degree of risk, which is the possibility
of reduced capital if the three underlying stockmar-
kets fall by more than 30% at anytime during the FTSE 100 Index measures the performance of the
five year term and do not recover. If the 30% is UK’s largest 100 companies by market capitalisa-
breached by any or all of the indices initial capital tion. The index is a capital only index, in that it
will be reduced with reference to the performance makes no allowance for dividend income, and its
of the lowest index over the full term. performance is dependent upon the performance of
It is important for you to consider the trends of the the companies within the Index. The companies
three underlying stockmarkets, now, over the life of that make up the index can change regularly but
the Plan and at the end of its term before investing. currently include, HSBC, BP, Vodafone and
The current level of uncertainty and volatility in GlaxoSmithKline.
world stockmarkets is the main reason that the 9%


 S & P 500
ated that by basing the Plan on three indices the
chances of one breaching the 30% barrier is in-
1,800
creased but as the FTSE100 & S&P 500 have had
1,600
a tendency to correlate in the past, it is our belief
1,400
that the increase in risk is marginal. It should also
1,200
be borne in mind that the capital return will be
1,000
based on the worst performing index only.
800
600 At the time of writing, higher interest building
400 society/bank accounts, where initial capital is
200 not put at risk, are typically producing 6.25%
0 p.a. gross, compared to the Plan’s 9.00% p.a.
gross (8.76% p.a. for monthly income).
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
Disclaimers
S&P 500 measures the performance of the largest FTSE 100 DISCLAIMER; The Plan is not in any
500 companies in the USA by market capitalisa- way sponsored, endorsed, sold or promoted by
tion. It currently includes shares such as Coca FTSE International Limited (“FTSE”), the Lon-
Cola, Pfizer, Walmart and MacDonalds don Stock Exchange Limited (“the Exchange”) or
by the Financial Times Limited (“FT”) and none of
the FTSE, the Exchange or FT makes any war-
ranty or representation whatsoever, either expressly
Nikkei 225
or implied, either as to the result to be obtained
45,000
from the use of the index and/or the figure at
40,000
which the said Index stands at any particular day
35,000
or otherwise. The FTSE index is compiled and
30,000
calculated by FTSE. However, none of the FTSE,
25,000
the Exchange or the FT shall be liable (whether in
20,000
negligence or otherwise) to any person for any error
15,000
in the Index nor shall they be under any obligation
10,000
to advise any person of any error or omission
5,000
therein. “FTSE” is a trademark of the Exchange
0
and FT and is under license.
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 DISCLAIMER; The Plan is not spon-

sored, endorsed, sold or promoted by Standard &
Poor’s, a division of the McGraw-Hill Companies,
Inc. (“S&P”). Neither S&P nor the Australian
Stock Exchange (“ASX”), or the Toronto Stock
Nikkei 225 measures the performance of the
Exchange (“TSX”),makes any representation or
leading 225 Japanese companies, without account
warranty, expressly or implied, to the owners of the
of dividends, and reflects all sectors of the economy.
Plan or any member of the public regarding the
Included within the index are many household
advisability of investing in securities generally or in
names such as Sony, Nissan, Sanyo, Sharp and
the Plan particularly or the ability of the S&P
Daiwa.
Indices to track general stock market performance.
S&P, ASX,TSX have no obligation or liability in
connection with the administration or marketing
It is by using the three indices that the high fixed of the Plan.
income can be achieved, but it should be appreci-


NIKKEI 225 DISCLAIMER; The Nikkei 225
Index (the “Index”) is the intellectual property of How to Invest in the
the Nihon Keizai Shimbun, Inc (the “Index
Sponsor”).“Nikkei” and “Nikkei 225” are the
Arc Capital & Income
service marks of the Index Sponsor. The Index
Sponsor reserves all rights, including copyright, to
– Fixed Income Plan
the Index. The Plan is not in any way sponsored, There is no age restriction for direct investment in
endorsed, sold or promoted by the Index Sponsor. to the Plan. To invest via an ISA for the current tax
The Index Sponsor does not make any warranty or year, you must be a UK resident for tax purposes,
representation whatsoever, express or implied, aged 18 or over- and must not have already sub-
either as to the results to be obtained from the use scribed to another ISA for the 2007/2008 tax year.
of the Index or the figure at which the Index stands
at any particular day or otherwise. The Index is
compiled and calculated solely by the Index Spon- IMPORTANT
sor. However, the Index Sponsor shall not be liable
to any person for any error in the Index and the Cheques should be made payable to Arc Capital &
Index Sponsor shall not be under any obligation to Income plc Client Account – or, in the case of a
advise any person, including a purchaser or vendor building society cheque, Arc Capital & Income plc
of any of the products, of any error therein. In Client Account reference (your name).
addition, the Index Sponsor gives no assurance
It is only necessary to send one cheque for the total
regarding any modification or change in any
amount you wish to invest. Separate applications
methodology used in calculating the Index and is
(e.g. from a husband and wife) require a cheque in
under no obligation to continue the calculation,
respect of each applicant.
publication and dissemination of the Index.

Before you invest

Before you make your mind up to invest you should
have read and understood the information in this
brochure. You should have thought about the level


of risk you are prepared to take when investing; 4. By providing a password in section 4, we can give
made sure that you are comfortable about taking you information over the phone and give you access
some risk with your capital; made sure you will not to our web-based services. Please keep a note of
suddenly need access to your money and that you your password safely and separate from details of
have acquainted yourself with the FSA factsheet your investment.
(see page 12).
5. Please indicate if you have received financial
Once you have satisfied yourself that you do want advice in section 5
to invest you should complete the application form,
6. You must read, sign and date section 6.
using the application checklist below:
7. If you want to transfer a PEP or an ISA, you
should use the special application form (please
Application Checklist photocopy it or contact us for more forms if you are
transferring more than one investment).
1. Unless you want to transfer your PEP or ISA
(see 7 below), you must fill in section 1 of the
standard application form. It is only possible to
have a joint holder for a direct investment in the
plan. If you want to use this facility, please fill in
the details of the joint holder in the relevant boxes
in section 1. For direct investment on behalf of a
child (under the age of 18), the adult filling in the
form acts as a nominee of the child and the child’s
name and date of birth need to be added.
2. If you want to invest in an ISA for the tax year
2007/2008, you must also fill in section 2. We
need this information to set up an ISA investment
for HM Revenue and Customs.
3. You should enter the details of the amount you
want to invest in section 3.


Your Questions
Answered
What is my commitment?
To invest until 7 Novemer 2012, a period of 5 years
and 1 week.
What are the aims of the Plan?
The aim of the Fixed Income Plan (“Plan”) is to provide
* 5 annual payments of 9.00% or 60 monthly pay-
ments of 0.73% and
* A return of capital at maturity on 7 November 2012.
At maturity, you will have the option of closing
your plan, or transferring to another ISA/PEP
Manager or continuing your investment on terms
offered by the Plan Manager, Arc Capital &
Income plc, at that time.
What are the risk factors?
* The overall returns will depend on the perform-
ance of the FTSE 100, S&P 500 and the Nikkei
225 indices and could be less than your original
investment (see “What about my capital return?”
overleaf and “Calculating the Capital Return” on
page 3 of this brochure).
* Your circumstances could change, forcing you to
cash in early.
* If you transfer or encash your Plan during the term
you may get back less than the amount invested.
* If you exercise your right to cancel after the bond
has been purchased you may not get back your
full original investment.
* If the financial institution, which issues the bonds
for your Plan, fails to repay the amounts due to
pay your income and maturity you could lose
some or all of your investment. To reduce this risk
we will only deal with a financial institution which
has a current credit rating of at least A+ from
Standard & Poor’s, or equivalent, which denotes
a high level of financial strength.
10
* For these reasons, this Plan is only suitable if you
can afford and are prepared to accept the risk
that some or all of your capital could be lost.
* If you choose to make a PEP or ISA transfer into
the Plan you might have to pay an exit charge
and could lose some investment growth from
your current PEP or ISA if the market rises while
the transfer is being carried out.
* The levels and basis of taxation and reliefs from
taxation can change at any time. The value of any
tax reliefs depends on individual circumstances.
Tax assumptions are based on Arc Capital &
Income plc’s understanding of current legislation
and practice, which may change in the future.
What are my income benefits?
The following examples are based on a £10,000
investment:
* If you choose monthly income you will receive 60
monthly payments of £73 commencing 30 No-
vember 2007 and concluding 31 October 2012;
* If you choose annual income you will receive five
payments of £900 the first commencing on 31
October 2008 and concluding 31 October 2012.
These amounts are subject to tax for investments
made outside a PEP or ISA.
What about my Capital Return?
The Plan is not guaranteed to return the full
amount of capital originally invested. The Capital
Return, which is paid separately from the income
benefits, is dependant on the performance of FTSE
100 Index, S&P 500 and the Nikkei 225 Index
(the indices) during the Investment Period 31
October 2007 to 31 October 2012. The Initial
Level of each index is its close of business level on
29 August 2007. The Final Level of each index is
its close of business level on 31 October 2012.
If, at any time during the Investment Period, no
index falls by over 30% from its Initial Level a full
return of capital will apply at maturity. A full return
of capital will also apply. If any index falls by over
30% during the Investment Period but the Final
Level of each index is at or above its Initial Level.
If any index falls by over 30% during the Invest-
ment Period and the Final Level of any index is less
than its Initial Level, a capital loss will occur. The
loss in capital will be dependant on the Final Level
of the lowest performing Index. Capital will be
reduced by 1% for each 1% the Final Level of the
relevant Index is below its Initial Level.
For example if the Final Level of the relevant index
is 35% below its Initial Level the capital return
would be 65% (100%-35%). Please see further
examples in the table contained in “Calculating the
Capital Return” on page 3 of this brochure.
What is an Individual Savings Account (ISA)?
An ISA is a tax free savings account. There are two
types of ISA available;
Maxi ISA – this must offer a stocks and shares
part and can offer a cash part. You may invest up to
£7,000 in a Maxi ISA. Of this amount, up to
£3,000 can be held in cash. If you take out a Maxi
ISA, you cannot invest in another Maxi or a Mini
ISA in the same tax year.
Mini ISA – this offers investment in only one of
the parts that a Maxi ISA offers. You can invest in
one Mini ISA for each part in each tax year.
Therefore you may invest up to £4,000 in a stocks
and shares ISA and £3,000 in cash. Each part can
be with a different provider.
If you take out a Mini ISA, you cannot invest in
another Mini ISA for the same part or a Maxi ISA
in the same tax year.
The Government has announced that its reforms to
make ISAs simpler and more flexible will come into
effect a year earlier than originally planned, in
April 2008.
The reforms include:
* Extending ISAs indefinitely, with a guarantee that
the overall annual investment will remain at least
£7,000;
* Bringing Legacy PEPs within the ISA wrapper
to enable investors to manage their funds more
effectively;
* Removing the Mini/Maxi distinction within ISAs;
* Allowing transfers from the cash component of
ISAs into the stocks & shares component;
* Allowing Child Trust Fund accounts to roll over
into ISAs to encourage young people to maintain
a saving habit into their adult years.
What happens if I change my mind about
investing?
If you decide not to invest you should let us know
as soon as possible. Within 5 working days of
accepting your application we will send you a
‘notice of the right to cancel. From the time you
receive this notice you will have 14 days to change
your mind and cancel your application. If we
receive your request to cancel after we have pur-
chased the bonds you may receive back less than
your original investment.
What information will you give me about my
investment?
We will send you an acknowledgement within 5
working days of receiving your application. In
November we will send you a statement showing
the bonds purchased for your plan. After this, we
will issue a statement and valuation of your
investment as at the end of October each year.
What will happen to my investment if I die?
ISA and PEP investments will lose their ISA and
PEP status. We will deal with all plans in line with
the instructions of your personal representatives.
The investment may be transferred to your benefi-
ciaries at no cost or encashed for which a charge
will be made (see below).
How much will any advice cost?
If you receive advice from an independent adviser,
he or she will give you details about the cost. If you
are not receiving any advice, we may still pay an
introducing independent adviser commission. Any
commission paid will not affect the returns quoted.
11
Can I cash in my investment before maturity?
Yes, but before you do so you should remember
that the plan is designed to run for the full 5-year
term. If you do decide to encash you should write
to us with instructions to sell the plan investments
and to send the net proceeds to you or another plan
manager. We will usually be able to complete your
instructions within 28 days. The value of your
investment will be determined by the price at
which we can sell the bonds held by your plan. This
will depend on a number of things, including
prevailing interest rates, the performance of the
three indices and the limited secondary market in
the bonds. There will be an administration charge
of £150 (+ VAT), which may increase by the Retail
Price Index (RPI) in the future.
What do I do if I am not happy with the way
you are dealing with my plan?
We will do our best to meet our high standards of
customer care but if we fail to do so, please let us
know. If we do not deal with your concerns you can
make a complaint. We have a written complaint
procedure and you can ask us for a copy of this at any
time. If you are not happy with how we deal with
your complaint, you can complain to the Financial
Ombudsman Service at South Quay Plaza, 183
Marsh Wall, London E14 9SR. Making a complaint
will not affect your right to take legal action.
Please refer to the Terms and Conditions for
information regarding the Financial Services
Compensation Scheme.

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

Can I transfer my ISA or PEP to a new manager?
No, we do not give you any advice as to whether the
Yes, you can ask us to transfer your ISA or PEP to
Plan is suitable for your own specific circumstanc-
another manager at any time. If you decide to do so
es. If you do need such advice, or guidance on tax,
during the term of the plan we will encash the Bonds
you should consult an authorised financial adviser.
you hold on the terms outlined in ‘Can I cash in my
investment before maturity’ above. Transfers to
another plan manager before maturity will incur an
additional administration charge of £100 (plus
VAT), which may increase by RPI in the future. If
you wish to transfer the proceeds at maturity to
another Plan Manager there will not be a transfer fee.

12
Further Information
The Financial Services Authority (FSA) is an
independent body set-up by the Government to
regulate financial services. It publishes a range of
factsheets and helpful information for consumers.
As the high level of income payable from this
investment is at the expense of placing your origi-
nal capital at risk it is important that you under-
stand and accept these risks before you invest.
To assist you we have re-produced below some
information from the FSA factsheet “Capital-at-
risk-products” the factsheet generally explains how
capital-at-risk products work and describes the
risks that can be associated with them. You can
also contact the FSA on the FSA Consumer
Helpline on 0845 606 123 or visit their website at
www.fsa.gov.uk/consumer
What are capital-at-risk products?
These are usually share-based investments from
banking, insurance or investment management
firms, and can offer attractive returns. Your
investment could do as well as planned, or maybe
better. But if it does not, you could lose some or all
of the money you put in (your capital). Capital-at-
risk products usually invest in a variety of stock-
market investments such as shares or debt securi-
ties. Debt securities include corporate bonds
which are loans to organisations such as compa-
nies or the government.
Products that put your capital at risk include:
* Stockmarket - based investments. These include
collective investment schemes (such as open-
ended investment companies (OEICs) and unit
trusts) and investment trusts;
* investment bonds and funds that invest in debt
securities, such as corporate bond funds; and
* investments linked to the performance of a stock-
market or some other factor such as a collection
of shares. These are usually for a fixed number of
years (the ‘term’) and can be arranged to pro-
vide income or growth or a combination of both.
As an alternative, you could invest directly in:
* shares, and so benefit from any dividends paid; or
* debt securities, for which you get fixed or vari-
able interest.
But the value of direct holdings of shares and other
securities can change sharply – down as well as up.
Depending on its particular terms and conditions,
13
the value of an investment product linked directly
or indirectly to the stockmarket may have lesser,
similar or greater risk.
How do different capital-at-risk prod-
ucts usually work?
Stockmarket-based investments
A wide range of stockmarket-based investments is
available. The performance of the investments
depends on the investment strategy adopted and
general stockmarket conditions. The value of
stockmarket-based investments can alter sharply
because they are linked to the performance of the
underlying shares or bonds (ie what your money is
actually invested in).
Investment bonds and funds that invest in debt
securities
These vary widely and include distribution bonds,
with-profits bonds, unit-linked bonds and corpo-
rate bond funds. The money you invest is usually
put directly into the stockmarket (in London or
overseas) or into fixed or variable interest funds.
Investments linked to an index or other factor
With some fixed-term products, repayment of the
capital to the investor (in full or in part) is linked by
a special pre-set formula to the performance of an
index such as the FTSE 100 or maybe a combina-
tion of indexes or some other factor – such as the
performance of a collection of shares. We call them
‘structured capital-at-risk products’. Some offer a
specified level of income over a fixed period, while
others offer growth that depends on the perform-
ance of an index or other factor (see the examples
below). These products, and the risks involved, can
vary widely. For example, some may involve ‘gearing’
(the use of borrowing that can increase the amount
you get back but will also increase the risks). Others
can provide some element of capital protection.
An example of a structured growth product is one
that offers 30% growth over five years, but also
14
states that if the FTSE 100 index falls by more
than 20% at the end of this period, then your
capital is reduced by 1% for each 1% fall in the
index. So if after five years the index fell by 50%,
someone who invested £5,000 would still receive
30% as growth (£1,500) but the capital would have
reduced to £2,500. So you would only get £4,000
from your original investment of £5,000.
An example of a structured income product is one
that offers 6% income a year for five years, but also
states that if the FTSE 100 index falls at the end of
this period, the capital is reduced by 2% for each
1% fall in the index. So if after five years the index
fell by 25%, someone who invested £5,000 would
still have received 6% income a year over the five
years (a total of £1,500) but the capital would have
reduced to £2,500. So you would only get £4,000
from your original investment of £5,000.
What are the main risks involved with
capital-at-risk products?
* Your capital can fall below the amount you
put in. This loss may significantly increase if the
product structure involves gearing (see above);
so falls in the index to which the investment is
linked can result in an even greater reduction in
the capital you invested.
* The rate of return advertised might be achieved
only after a set period – perhaps five years; you
may not know until that date how well your
investment has performed.
* The rate of return you get may depend on specific
conditions being met. Even professionals may not
be able to judge accurately how likely that will be.
* If you take your money out early, you may get
less than you put in: for example, there may be a
penalty to be paid.
Points to think about before investing
What is the difference between a capital-at-risk
product and a savings account?
When you put your money in a bank or building
society savings account, its original value doesn’t
change and you also get interest. The return will be
comparatively low, which reflects the fact that you
haven’t risked your capital. With capital-at-risk
products you may get higher returns, but you are
putting your capital at risk and may end up with
less than you put in.
How do I know which product to choose?
Consider your financial needs carefully: how much
– if anything – can you afford to lose? And for how
long can you afford to have your money tied up? Do
your homework: shop around. Don’t just look at
headline information, check the detail. Capital-at-
risk products are not right for you if you can’t
afford to lose money. But if you are willing to take
risks to benefit from potentially higher rewards,
there are many products to look at.
What charges do I have to pay for these products?
The charges vary and there may or may not be any. If
there are charges, make sure you understand how they
affect the value of your capital and income. Some
funds deduct them from your initial investment. They
may also take charges yearly, usually as a percentage of
the total value of your ongoing investment.
How long will my money be tied up?
With most investments you should expect to tie up
your money for some time. Some capital-at-risk
products offer returns if you leave your capital with
them for a fixed number of years. Other invest-
ments can continue indefinitely.
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) if you cash them in before the matu-
rity date. As a rule, never tie up money you may
need in the short or medium term.
If the investment period is fixed, what happens
at the end of it?
At the end of a fixed period your investment will
mature and you should get its maturity value. But
the maturity value may be reduced by charges or a
final adjustment if, for example, it depends on the
value of an index. Depending on the terms and
conditions of the product, you could end up losing
some or all of your capital. Also, any income or
growth you have received may be subject to tax.
Will I get the advertised rate of return?
This depends on the terms and conditions under
which you have invested. Often the advertised rate
merely illustrates what is possible, and is no more
certain than that.
Checklist
Decide how important it is to keep your capital
intact.
Remember that many investments are meant for
the long term and are not for savings you may need
quickly.
Remember: capital-at-risk products should usually
form only part of your total portfolio of savings and
investments; and the value of such investments (and
the income or growth from them) may fall as well
as rise.
Take advice if you are unsure whether or not an
investment is right for you.
Remember it’s your money, and your decision as to
what to do with it.
Don’t invest unless you fully understand what
you’re investing in.
Don’t run a risk you can’t afford.
15
Terms and Conditions
These Terms and Conditions apply to the Arc
Capital & Income Fixed Income Plan 2 (“The Plan”)
1. Definitions
Application Form – The relevant form that must
be correctly completed, for an ISA, a PEP or a
Direct Investment to be opened.
Business Day – any day other than a Saturday,
Sunday, bank holiday or other UK public holiday.
Direct investment – any part of the plan that is
not an ISA or a PEP.
ISA – a Mini or Maxi Individual Savings Account
set up in line with these Terms and Conditions and
the Regulations.
PEP – a Personal Equity Plan set up in line with
these Terms and Conditions and the Regulations.
Plan – ISA, PEP or Direct Investment, as de-
scribed in the brochure and made up of securities
(investments) and cash that we handle on your
behalf.
Regulations – The Individual Savings Account
Regulations and The PEP Regulations, as amend-
ed from time to time (the “Regulations”). If there
16
are any differences between the Regulations and
these Terms and Conditions, the Regulations will
apply.
Securities – The underlying qualifying invest-
ments of the Plan, arranged to provide the invest-
ments and capital returns set out in the Plan
brochure.
Subscription – any amount paid by you into your
Plan.
We, us, our – Arc Capital and Income plc. The
Company is authorised and regulated by the Finan-
cial Services Authority (FSA) and must follow its
rules, as amended from time to time (“the Rules”).
If there are any differences between the Rules and
these Terms and Conditions the Rules will apply.
You, your – the investment holder(s) named on the
Application Form.
2. Services we provide
a. We will be responsible for buying and selling all
investments. We will carry out transactions on terms
that are at least as favourable as those that we can set
when dealing directly with the market maker.
b. There may be times when we, or one of our
clients, have some kind of interest in the transac-
tion that is being carried out. If this happens, or we
become aware that our interest or that of our other
clients conflicts with your interest we will tell you,
and ask your permission, before any transaction is
carried out.
3. Your Application
a. We may accept a completed Application Form
and Subscription from you under the terms of this
Agreement. We have the right to reject an applica-
tion for any reason.
b. You must invest in the ISA with your own cash or
by transferring cash from an existing ISA. You can
invest in the PEP account only by transferring cash
from an existing PEP. Transfers of existing PEPs
and ISAs will normally be arranged with the exist-
ing PEP or ISA Manager. Once the PEP or ISA has
been transferred and received by us, these Terms
and Conditions will apply to your PEP or ISA.
c. By completing the Application Form, you
instruct us to choose and buy Securities that have
been designed to provide the benefits of the plan as
described in the Plan brochure.
d. If we have to cancel or void your ISA under the
Regulations, you authorise us to hold your Securi-
ties outside the ISA as a Direct Investment. In
such an event these Terms and Conditions will
continue to apply to your Plan as a Direct Invest-
ment. In particular you may have to pay tax. If we
have to void your ISA because you are not eligible
to apply for the ISA we have the right to deduct
any costs or expenses.
e. If your Plan is a PEP or an ISA and you live in
the UK, you will not, under current tax rules, have
to pay UK income tax or UK capital gains tax on
the profit from the Plan but any losses on your
Plan will be ignored for the purposes of UK capital
gains tax.
f. If your Plan is a Direct Investment you may,
depending on your circumstances, have to pay tax
on any interest, income or dividends you receive
and/or on any capital gain from selling the Plan.
g. The taxation statements in Conditions 3b, 3d, 3e
and 3f are based on our understanding of current
tax legislation, regulation and practice. Such tax
legislation, regulation and practice are subject to
change in the future.
4. Basis of dealing
a. We, or our associated companies, may choose
and instruct brokers or dealers (including associ-
ated companies) to buy, sell and deal in Securities
for your Plan. Or, we may do so ourselves as
licensed dealers or brokers.
b. We may keep all commissions or profits arising
from those transactions. Your Plan will be debited
17
immediately we buy investments on your behalf.
We do not have to account for any interest earned
pending settlements i.e. interest we earn on cash we
hold while we are waiting to pay for Securities we
have bought or pay you for Securities we have sold.
c. The amount(s) we commit to invest in Securities
to be held in your Plan will not extend beyond the
amount of cash and investments placed by you
under our control.
d. We will be acting as your agent in arranging to
buy these Securities. We acknowledge and confirm
on behalf of any issuer of such securities, its affili-
ates and directors (together known as the ‘Issuer’)
that we do not act as agent for the Issuer and that
any offer of Securities is not authorised by any
issuer and is made without the Issuer’s knowledge
or approval before hand.
e. We may combine your order with orders of other
clients when processing them. If this results in us get-
ting a number of transactions at different prices, all
clients involved in the transactions will pay or receive
the same average price. If you ask us to, we will
provide details of how we work out the average price.
f. If, for any reason, we are unable to purchase securi-
ties to fulfil the commitments set out in the bro-
chure your Subscription will be returned to you,
with any interest accrued to the date of repayment.
g. In the event of any issuer becoming unable to
meet its obligations to repay the amounts due you
could lose some, or all, of your Subscription.
5. Your right to change your mind
a. We will give you the right to cancel your Plan
within 14 days of receiving from us a notice of your
right to change your mind.
b. If we have bought Securities before we receive
your completed cancellation request the amount
you will receive may be less than the amount of
your Subscription, if the price at which we sell the
Securities is less than the price you paid for them.
c. If you cancel a PEP or ISA transfer application
and do not tell us at that time the name of another
Plan Manager you want to transfer the investment
to we will turn your investment back into cash and
18
send it to you. This means that the PEP or ISA
status of the investment will no longer apply.
6. Cash held
a. You may invest into the Plan only in line with
the published terms.
b. We hold all money belonging to clients in a
separate client account, which is identified as a
trust account. All clients’ money is separated from
the funds belonging to us. We will hold your
Subscription in our client account until we make a
payment on your behalf to purchase the Securities
to be held in the Plan. At maturity, or earlier
redemption of the Securities, we will hold the
proceeds in the client account, pending reinvest-
ment of the proceeds in a new Plan with us; or the
payment of the proceeds to you, or the transfer of
the proceeds to a new PEP or ISA Manager.
c. We will invest money held in an account in
securities in line with the requirements of the
regulations and the rules of the FSA.
d. We will remind you periodically if we hold cash
within an ISA or PEP pending reinvestment. If
such cash is held for a long period the HM Rev-
enue and Customs could void the PEP or ISA
status of the investment.
7. The Plan Investments
a. All Securities allocated to your Plan will be
registered in the name of, and kept in the custody of,
Arc Nominees Limited (a totally-owned non-trading
subsidiary of Arc Capital & Income plc). Arc Nomi-
nees Limited is not itself authorised under the
Financial Services and Markets Act 2000, but we
accept responsibility for its acts and omissions.
b. We will not lend documents of title to any other
person and money may not be borrowed on your
behalf against the security of these documents.
c. You will be the beneficial owner of the Securities
and of any cash held in the Plan.
d. Unless you tell us otherwise, we may (if the Regu-
lations allow) make arrangements, when appropriate,
to use the voting rights of your Securities.
e. Prior to maturity of the Plan we will contact you
to explain the various options available to you at
that time.
8. Charges
a. We will not deduct any charges, fees or expenses
from the Plan. However, the terms on which we
will purchase the securities on your behalf will
reflect certain charges, fees and expenses. This will
not affect the calculation of returns described in
the Plan brochure.
b. If you encash your Plan before the maturity date,
as set out in the Plan brochure, there will be an
administration charge of, £150.00 plus VAT.
c. If your Plan is a PEP or an ISA and you transfer
its value to another Plan Manager during the term
of the Plan there will be an additional transfer
charge of £100 plus VAT.
d. We reserve the right to increase the current
charges set out in Conditions 8b & 8c in line with
rises in the Retail Prices Index.
9. Keeping you informed
a. We will send you an acknowledgement of your
Application Form within five working days of receipt.
b. We will send you an Initial Transaction State-
ment, setting out details of the purchase of securi-
ties for your Plan.
c. We will give you a report and valuation of your
plan investments at yearly intervals, as set out in
the brochure.
d. If you ask, you will receive any information we
issue to holders of the securities in which you invest.
If you ask us to, we also invite you to vote at meet-
ings. If you want to go to meetings in person, we will
try to arrange this. We have the right to make a
reasonable charge for providing these extra services.
e. Where a certificate or other document evidenc-
ing title to securities or other qualifying invest-
ments is issued it will be held by us or as we direct.
f. At all times you, or your nominated agent, can
ask to see all entries in our records relating to any
transactions relating to your Plan. We will main-
tain these records for at least six years after the
transaction date.
g. All information and correspondence may be
provided in electronic format via email and/or web
services. We may offer alternative media for
information and correspondence from time to time.
10. Transfers
a. You have the right to transfer your PEP or ISA
to another PEP or ISA Manager at any time.
b. You must make any request to transfer in writing.
c. If you elect to transfer prior to the maturity date
of the Plan, as defined in the Plan brochure, the
sale of the Securities you hold will be carried out as
described in Conditions 11a & 11b. The charges
outlined in Condition 8b & 8c will be deducted
from the sale proceeds before payment to the new
ISA or PEP Manager.
d. You cannot transfer part of your investment.
e. All transfers will be subject to the Regulations.
11. Closing your Plan
a. You may close your Plan at any time by giving us
your written instructions. This will not affect any
transactions we have already started to carry out. We
will sell the securities at the next dealing date and
issue payment for the net proceeds. We will usually
carry out this procedure within 28 business days
b. The value of your investment will be determined
by the market price of your holdings as at the date
of sale. The price may reflect the limited market in
the securities.
c. Prior to closing your Plan or transferring its
value to another plan manager you should consider
that the Plan is designed to be held for the full
investment term.
d. We may end your Plan at any time in writing,
by giving you notice. This will not affect any
transactions we have already started to carry out.
19
e. Once this agreement has ended, we will not carry
out any transactions, except to allow us to return the
proceeds of the underlying securities or other qualify-
ing investments to you, or as specifically requested by
you and subject to new terms and conditions.
12. Death
a. In the event of your death during the term of the
Plan we will act on the instructions of your per-
sonal representatives. If they elect to do so they are
able to re-register the ownership of the Plan to
maintain it to its maturity date.
b. If your personal representatives elect to encash the
Plan, the charge outlined in Condition 8(b) will apply.
c. If your Plan is a PEP or an ISA it will cease to be
exempt from tax from the date of death.
13. Prevention of Money Laundering
a. To enable us to comply with the UK Money
Laundering Regulations and the Rules we may
carry out electronic checks on your identity prior
to buying or selling securities on your behalf. It
might be necessary for us to request, and for you to
provide, further information as part of this process.
20
14. Providing information to the HM
Revenue and Customs
a. You authorise us to give the HM Revenue and
Customs all relevant details of your ISA or PEP,
which they may reasonably ask for at any time.
b. We will tell you if the ISA or PEP has or will
become invalid.
15. Communications and unwanted calls
a. We will usually only communicate with and
report to you in writing.
b. You give us permission to communicate by e-
mail or to phone you if we need to do so but only at
a reasonable hour.
16. Liability
a. We will carry out the duties described in these
terms using all reasonable care and skill, but will
only be liable to you for:
* our negligence or deliberate fraud, or that of any
associated companies or any employees of one or
more of those companies; or
* breaking these terms or a Financial Services
 Authority rule or a Regulation. However, we will
not be liable to you or have any responsibility
of any kind for any loss or damage you suffer as
a result of any event or circumstance that is not
reasonably within our control.
We will not be liable to you for any act or fraud by
any person, firm or company through or with whom
transactions are carried out on our behalf (other
than any bankers, firms, companies or any employ-
ees of companies who are associated companies).
b. We will not be liable or have any responsibility of
any kind for any loss or damage you suffer as a
result of any failure, interruption or delay in
carrying out our obligations resulting from:
* Breakdown or failure of any telecommunications
or computer service;
* Industrial disputes;
* Failure of other people to carry out their obligations;
* Acts of governments or international authorities; or
* Any other event or circumstance that is not rea-
sonably within our control.
c. By completing the declaration on the Application
Form you confirm that you have read the Plan
brochure and any accompanying information
supplied by us relating to this Plan and understand
the nature of the investment.
17. Protecting your rights
a. We are covered by the Financial Services Compen-
sation Scheme. You may be entitled to compensation
from the scheme if we cannot meet our obligations.
This would depend on the type of business and the
circumstances of the claim. Most types of investment
business are covered for 100% of the first £30,000,
and 90% of the next £20,000, so the maximum
compensation is £48,000. You can get more informa-
tion about compensation arrangements from the
Financial Services Compensation Scheme.
b. If the performance of the investments does not
match any illustrated benefits, you will not, for that
reason alone, be entitled to any compensation
under the Financial Services Compensation
Scheme.
c. You may complain about any aspect of the
service you received to the Compliance Officer at
the address shown within the brochure . If you ask,
we will send you written details of how we will deal
with your complaint. If you are not happy with
how we have dealt with your complaint, you can
complain to the Financial Ombudsman Service at
South Quay Plaza II, 183 Marsh Wall, London
E14 9SR. Making a complaint will not affect your
right to take legal action.
21
d. We maintain insurance cover to indemnify * To you if you ask and in line with the Data Pro-
clients against (among other things) any of our tection Act 1998.
employees dishonestly using funds or securities or
other qualifying investments.

18. Governing law 21. Amendment to these Terms and

a. This Agreement will be governed by English law
and will come into force when we receive your
signed Application Form for a Plan.
Conditions
a. We may vary these Terms and Conditions from
time to time by giving you at least one month’s
notice of such change.

19. Enforcement
a. Should any of these Terms be held to be unen-
forceable the validity and enforceability of the
remaining provisions shall not be affected and the
unenforceable provision will be replaced by an
enforceable provision which comes closest to the
intention underlying the unenforceable provision
and which is of similar economic effect.
b. Our failure to enforce any provision of these Terms
and Conditions will not constitute a waiver of our
right to subsequently enforce such provision or any
other provision of these Terms. None of our employ-
ees, officers or agents may verbally alter, modify or
waive any provision of these Terms and Conditions.

20. Data Protection statement

a. We may hold personal and financial information
on computer and manual systems and use this to:
* Handle and service your investment; and
* Put together statistics for assessment and analysis.

b. We may make your personal and financial

information available:
* To other Associated Companies (as defined in
Section 416 of the Income and Corporation
Taxes Act 1988) to process this application (we
or they may contact you by mail, phone or e-mail
with products or services that may interest you);
* To your financial adviser by e-mail or other
means, including a secure internet service;
* As we are obliged to under the requirements of
any law, regulation or court order that we must
follow; and

22
 Arc Capital & Income plc

Arc Fixed Income plan 2

22 Lovat Lane
London
EC3R 8EB

application form
Tel: 0845 890 8915
Fax: 0845 890 8916
E-mail: info@arccapital.co.uk
Capital & Income
Web: www.arccapital.co.uk

For extra applications, simply photocopy this form. Building Society Reference or Roll Number

1. Your details
4. Password
Title (Mr,Mrs, Miss, Ms):
For security purposes, please provide us with a password so we can give you information
Surname: over the phone or give you access to our web-based services.

Full first names:

Date of birth:
5. Have you received financial advice?
Permanent home address: Please indicate below if you have received financial advice relating to this investment.
I have received financial advice from an independent financial adviser

6. Declaration and authority

Postcode:
I declare I am 18 years of age or over and that I am not, and am not acting on the behalf of,a
Phone number: resident of the United States; and that I will not assist any person who is so resident to acquire
securities in the Plan. Further I agree to inform you immediately should I become a resident of the
E-mail address: United States. I confirm adherence to the requirements contained in the Terms and Conditions.

Applicable to all ISA Applicants: I declare that: a. all subscriptions made belong to me; b. I
For joint applications in direct investments only, please fill in the details of the joint am 18 years of age or older; c. If I am applying to subscribe to a Mini stocks and shares ISA, I
applicant here. have not subscribed and will not subscribe to a Maxi ISA or another stocks and shares Mini
ISA in the same tax year; or if I am applying to subscribe to a Maxi ISA I have not subscribed
Title (Mr,Mrs, Miss, Ms): and will not subscribe to another ISA other than a TESSA only ISA in the same tax year; d. I
am resident and ordinarily resident in the United Kingdom for tax purposes or, if not so resi-
Surname: dent, either perform duties which, by virtue of section 28 of Income Tax (Earnings & Pen-
sions) Act 2003 (Crown employees serving overseas), are treated as being performed in the
Full first names: United Kingdom, or, I am married to, or in a civil partnership with, a person who performs
such duties. I will inform Arc Capital and Income plc immediately if I cease to be so resident
Date of birth: and ordinarily resident or to perform such duties, or to be married to, or in a civil partnership
with, a person who performs such duties; e. I will inform Arc Capital and Income plc without
delay of any change in my circumstances affecting any of the information in this form.
2. National insurance number
I authorise Arc Capital and Income plc: a. to hold my cash subscription, Direct investments,
Do you have a National Insurance (NI) number?   Yes    No ISA Investments, interest, dividends and other rights or proceeds in respect of those invest-
ments and any cash or other proceeds; b. to make on my behalf any claims to relief from tax in
If ‘Yes’, you must write it here. You should be able to find your NI number on a payslip, form respect of ISA investments.
P45 or P60, letter from the HMRC, letter from the Benefits Agency, or pension order book.
I have read and understood the Arc Capital and Income Fixed Income Plan 2 Brochure
                  and Terms & Conditions and accept the terms under which my investments will be
managed. I declare that this application form has been completed to the best of my
knowledge and belief. I understand that Arc Capital and Income does not provide
3. Investment investment advice and confirm that I either do not require such advice or have received
Direct investment: advice on this investment from an Independent Financial Adviser.
(minimum £4,000). £
Signature:
ISA for 2007/2008: Mini Maxi
I apply to invest £4,000 in a Mini ISA, or £7,000 in a Maxi Date:
£4,000 £7,000
ISA. (Please cross out the one that doesn’t apply.)
Joint signatures
Total investment (direct investments only):
Please make your cheque payable to Arc Capital and Income
plc Client Account. If you are sending us a building society Date:
£
cheque, it should be payable to Arc Capital and Income plc
Client Account reference (your name). Note: When you have filled in and signed this application form, please return it to your
financial adviser or to Arc Capital and Income plc, 22 Lovat Lane, London, EC3R 8EB
Please select plan type Monthly Income   Annual Income
For financial adviser’s use only
Please complete the details and ensure that they are correct. Income payments can ONLY
be made via the BACs system: Financial adviser:

Bank/Building Society:

Address:

FSA number:

Postcode: Name of adviser:

Date of birth:

Account name: Verification of Identity

I confirm that I have carried out the appropriate identity checks and attach the ‘Verifica-
tion of Identity Certificate’. I have enclosed signed copies of the documentary evidence
Account Number:               with this certificate. I have seen the original documents and any that need a signature were
already signed.
Sort Code:  —   — 
June 2007

Signed on behalf of the above:

 Arc Capital & Income plc

Arc Fixed Income plan 2

22 Lovat Lane
London
EC3R 8EB

transfer application form

Tel: 0845 890 8915
Fax: 0845 890 8916
E-mail: info@arccapital.co.uk
Capital & Income
Web: www.arccapital.co.uk

You need to use a separate application form for each 4. Password

PEP or ISA you want to transfer. You may photocopy For security purposes, please provide us with a password so we can give you information
over the phone or give you access to our web-based services.
this form, or for further PEP and ISA Transfers.

1. Your details
5. Have you received financial advice?
Title (Mr,Mrs, Miss, Ms): Please indicate below if you have received financial advice relating to this investment.
I have received financial advice from an independent financial adviser
Surname:

Full first names: 6. Declaration and authority

a. I instruct the PEP/ISA manager to sell my existing PEP/ISA assets in accordance with the
Date of birth: PEP/ISA transfer request forms, and transfer the amounts realised to Arc Capital and Income plc
to invest in the Arc Fixed Income Plan 2.
Permanent home address: b. I authorise the PEP/ISA Manager to hold my cash subscriptions, Plan investments, interest,
dividends and any other rights or proceeds in respect of those investments and any other cash and
to make on my behalf any claims to relief from tax in respect of Plan investments, and on my writ-
ten request to transfer or pay to me,as the case may be,Plan investments, interest,dividend rights
or other proceeds in respect of such investments or any cash.
Postcode: c. I declare that the information given in this declaration is true and correct to the best of my
knowledge and belief and that I will inform the PEP/ISA Manager without delay of any change in
Phone number: my circumstances affecting any of the information in this form.
d. I declare that I have read and understood the brochure and terms and conditions and I agree
E-mail address: to the terms and conditions under which my investment will be managed. I understand that Arc
Capital and Income does not provide investment advice and confirm that I either do not require
such advice or have received advice on this investment from an Independent Financial Adviser.
2. National insurance number
Do you have a National Insurance (NI) number?   Yes    No Signature:

If ‘Yes’, you must write it here. You should be able to find your NI number on a payslip, form Date:
P45 or P60, letter from the HMRC, letter from the Benefits Agency, or pension order book.
Joint signatures
                  (direct investments only):

3. Investment Date:

Please select plan type Monthly Income   Annual Income Note: When you have filled in and signed this application form, please return it to your
financial adviser or to Arc Capital and Income plc, 22 Lovat Lane, London, EC3R 8EB
Please complete the details and ensure that they are correct. Income payments can ONLY
be made via the BACs system: For financial adviser’s use only

Bank/Building Society: Financial adviser:

Address:

FSA number:
Postcode:
Date of birth:
Name of adviser:
Account name:
Verification of Identity
I confirm that I have carried out the appropriate identity checks and attach the ‘Verifica-
Account Number:              
tion of Identity Certificate’. I have enclosed signed copies of the documentary evidence
with this certificate. I have seen the original documents and any that need a signature were
Sort Code:  —   —  already signed.

Building Society Reference or Roll Number

Signed on behalf of the above:

Existing PEP or ISA transfer request

I confirm that I am transferring a: (Please tick one box only) Name of existing PEP or ISA and address of the plan manager:

PEP     Stocks and shares ISA: Mini     Maxi   

Title (Mr,Mrs, Miss, Ms):

Surname: Plan manager’s phone number:

Surname:

Full first names: Account number of the PEP or ISA:

Date of birth: Approximate value:

Permanent home address and postcode: Existing PEP or ISA plan manager instructions
1. I instruct the manager of the PEP or ISA shown above to give you any information you may
need for the plan, sell any PEP or ISA assets and send a cheque for the proceeds to Arc Capital
and Income plc ‘Client Account’, 22 Lovat Lane, London EC3R 8EB, United Kingdom. If there
is a problem, please contact us on 0845 890 8915.
2. All dividends, interest, and tax credits arising after the transfer, should be made payable to me.
June 2007

Signature Date
Arc Capital & Income plc is authorised and regulated by
the Financial Services Authority.

Issued by Arc Capital & Income plc which is part of the

Arc Fund Management Holdings plc group

August 2007

Arc Capital & Income plc

22 Lovat Lane
London
EC3R 8EB
Tel: 0845 890 8915
Fax: 0845 890 8916
E-mail: info@arccapital.co.uk
Web: www.arccapital.co.uk