fixed term deposits with potential returns linked to the stock markets.

oFFshore limited
edition deposits (oleds)
FiXed term deposits With
potentiAl returns linked
to the stock mArkets.
Closing date for applications
12 September 2011.
An AlternAtive pAth to potentiAl
stock mArket relAted returns.
If you’re looking to build or protect your wealth in times
of low interest rates and rising inflation, you may have
considered investing directly in the stock markets. But
what about the extra risks involved?
At Lloyds TSB International we’ve designed our Offshore
Limited Edition Deposits (OLEDs) with the expertise of our
market analysts specifically to help you complement your
savings portfolio with exposure to stock market related
investments, while also aiming to minimise the risk that you
could lose money. Read on to find out more…
Capitalised terms used throughout this brochure have their meanings explained in the Terms and Conditions,
which are located in the application document inserted in the back of this brochure.
Contents.
Page 4
What are OLEDs?
Page 5
OLED options at a glance.
Page 6
Which individual stock or stock market and why?
Page 8
OLED 1:
5 year sterling growth deposit
with 3 year early maturity feature.
Page 10
OLED 2:
5 year sterling income deposit.
Page 12
OLEDs 3 & 4:
5 year sterling & US dollar growth deposits.
Page 14
Questions and answers.
Page 17
Are OLEDs right for me?
Page 18
What to do now.
3
WhAt Are
oleds?
oLeDs are limited edition fixed term deposits which
are available in a range of terms and aim to pay a return
linked to the performance of specific stock markets or
stocks. Dependent on their performance, any return will be
reflected in the value of your oLeD at maturity, or paid on
an annual basis, depending upon which oLeD you choose.
of course, there is the potential of very little or no return
above your original Capital and, as a consequence, the
purchasing power of your money at maturity could be
significantly affected by inflation.
But however big or small your return may be, OLEDs
are also designed to be cautious. That’s why they are
structured to always repay at least your original Capital at
the end of the term, regardless of the performance of the
underlying stocks or stock markets, so long as you hold the
deposit for the full term.
Here at Lloyds TSB International we know that our
customers have differing requirements and so our current
selection of OLEDs include the choice for potential capital
growth, available in sterling and US dollar options, or
a possible annual income available in sterling - so your
choice will depend upon your individual needs.
There’s a minimum deposit requirement of £10,000
or US$20,000 – no maximum and an optional Early
Depositor’s Bonus when you deposit your funds before
19 September 2011 (see page 15 for more details).
If Lloyds tsB offshore Limited as the deposit taker
became bankrupt or was unable to make payments
under the oLeD when due, you may get back less than
you are owed or nothing at all. If you are an eligible
type of depositor and satisfy the relevant criteria, your
oLeD will be covered by the relevant island depositors’
compensation scheme. see page 16 for details.
LIMIteD oFFeR DePosIts.
OLEDs have a closing date for subscriptions, although we
may withdraw them earlier if they become fully subscribed.
So if you’re interested in applying, you should act quickly to
ensure you don’t miss out. The closing date for our current
OLEDs is 12 September 2011.
oled options
At A GlAnce.
to help choose the most suitable oLeD for you we’ve
summarised them here so you can see all of your options
at a glance. Read on – you’ll also find full details of how
each oLeD works further on in the brochure.
oLeD 1
MAXIMUM POTENTIAL RETURN
OF UP TO 42% OF YOUR CAPITAL
(AeR 7.26%*).
oLeD 3
MAXIMUM POTENTIAL RETURN
OF UP TO 46% OF YOUR CAPITAL
(AeR 7.86%*).
A 5 year sterling growth deposit designed to repay your
Capital at maturity. Depending upon there being positive
performance of the FTSE 100 index over the deposit term,
it offers a maximum potential return of 42% (AeR 7.26%)*.
If the performance of the FTSE 100 is nil or negative then
only your Capital will be repaid at maturity. There’s also a
3 year early maturity feature. See page 8 for full details.
A 5 year sterling growth deposit designed to repay your
Capital at maturity. This deposit is linked to a basket of
UK, USA and Eurozone stock market indices and offers
the potential for a maximum return of 46% (AeR 7.86%)*.
The return payable is based upon the performance of the
basket of indices over the deposit term. If however the
basket performance is nil or negative then only your Capital
will be repaid at maturity. See page 12 for full details.
oLeD 2
POTENTIAL ANNUAL RETURN
EQUIVALENT TO 10% OF
YOUR CAPITAL.
A 5 year sterling income deposit designed to repay your
Capital at maturity. It offers the potential of an annual return
of 10% depending upon the performance of 3 individual
UK stocks, therefore the maximum potential return is 50%
(AeR 8.44%)* over the deposit term. It also has a special
bonus feature whereby if any annual return payment is
not paid there’s the opportunity for it to be recouped on
any subsequent year during the deposit term. There’s the
possibility of very little or nil return over the deposit term
depending upon the stocks’ performance. See page 10 for
full details.
oLeD 4
MAXIMUM POTENTIAL RETURN
OF UP TO 46% OF YOUR CAPITAL
(AeR 7.75%*).
A 5 year US dollar growth deposit designed to repay your
Capital at maturity. This deposit is linked to a basket of UK,
USA and Eurozone stock market indices and offers the
potential for a maximum return of 46% (AeR 7.75%)*.
The return payable is based upon the performance of
the basket of indices over the deposit term. If however
the basket performance is nil or negative then only
your Capital will be repaid at maturity. See page 12 for
full details.
oLeD KeY DAtes.
Last date for receipt of applications
12 September 2011
Last date for receipt of cleared funds
19 September 2011
Deposit Start Date
26 September 2011
Deposit Repayment Date
03 October 2016
* AER stands for Annual Equivalent Rate and illustrates what the rate of return would be if the return was paid and
compounded once each year.
5
Which individuAl stock
or stock mArket And WhY?
We’ve linked our 5 year sterling and Us dollar growth
oLeDs to stock market indices and our 5 year sterling
income oLeD to three individual UK stocks. the table
below sets out the relevant indices and individual
stocks so you can see what will drive the performance
of each oLeD.
oLeD
oLeD 1
5 year sterling growth
deposit with 3 year
early maturity feature
oLeD 2
5 year sterling
income deposit
oLeD 3
5 year sterling
growth deposit
oLeD 4
5 year US dollar
growth deposit
LInKeD stoCK
MARKet InDICes oR
InDIVIDUAL stoCKs
FTSE 100
HSBC HOLDINGS PLC.
GLAXOSMITHKLINE PLC.
VODAFONE PLC.
FTSE 100
EURO STOXX 50®
S&P 500®
FTSE 100
EURO STOXX 50®
S&P 500®
We’ve chosen these particular stock markets and stocks
based upon the forecasts of our expert market analysts.
To follow is some further information which supports why
each has been selected and linked to our current suite
of OLEDs.
Important note: These comments are the opinion of Lloyds
TSB and should not be relied upon as fact. In particular, no
responsibility or warranty is given as to the accuracy of any
financial information or as to the potential for achievement
or reasonableness of any forecasts, projections, prospects
or returns.
Ftse 100.
The FTSE 100 is the index measuring the performance of
the UK stock market, tracking the share prices of the 100
largest companies by market capitalisation listed on the
London Stock Exchange.
Our view is that UK company stocks will rise significantly in
the next few years, as the economic recovery slowly gathers
pace and consolidates. Remembering also that the UK stock
market has a large international element, the stronger pace
of the global economic recovery will be an additional boost
to the FTSE. Low interest rates, a fading of the negative
effects of fiscal tightening and the beneficial effects of fast
growth in the rest of the world, should be helping the top
tier of UK-based firms to see a strong upturn in revenue and
hence in their share prices.
eURo stoXX 50®.
The EURO STOXX 50® represents the performance of
50 companies representing a selection of market sector
leaders in the Eurozone.
Our forecast is that economic growth in the Eurozone, led by
Germany, will average close to 2% over the next four years.
Whilst this may not sound like much it will be sufficient to
support the equity market and comes despite the continuing
issues facing the so-called peripheral economies.
s&P 500®.
The S&P 500® (Standard & Poors) is a capitalisation weighted
index of 500 United States companies from leading
industries. The index represents a broad cross section of
the US equity market including common stocks traded and
quoted on the New York Stock Exchange, the American
Stock Exchange or the NASDAQ National Market System.
US economic growth will be the strongest of the developed
economies in the years ahead. Its economic recovery is set
to gather pace and the reforms to health care and the fiscal
deficit will eventually help that profile. In this scenario, the
S&P will do well, helped by a weaker currency and strong
growth in the rest of the world.
HsBC HoLDInGs PLC.
VoDAFone PLC.
HSBC is Europe’s largest bank and third largest in the world
having emerged from the financial crisis a relative winner
due to the strength of its balance sheet and growing focus
on Asia. The company also maintained a dividend policy
when the majority of the sector suspended payouts and this
is again starting to grow. The relatively new management
team of Douglas Flint (Chairman) and Stuart Gulliver (CEO)
must demonstrate the ability for HSBC to grow revenues and
exploit the strong presence in emerging markets especially
Asia against a backdrop of changing regulation, manage
risk, especially in the US business and address the expanding
cost base to ensure increased profitability. Rising costs have
been a feature of recent results and a key area of concern
and the recent strategy day included cost control initiatives
targeting savings of $2.5-3.5bn in order to fund investment
and bring the cost income ratio into the target range of 4852%. Management also reiterated other targets in terms of
returns on investment and stated the desire to invest further
in retail banking in markets offering scale, whilst not ruling
out disposals of non-strategic assets. In time HSBC should
be able to exploit their strengths and drive profitable growth
across the business.
Vodafone is a market leader in mobile telecommunications
with significant presence including subsidiaries and joint
ventures in Europe, the Middle East, Africa, Asia Pacific and
the US. The company is well placed therefore to benefit
from the trend of mobile data associated with the growth
in smart phone usage as well as continued mobile take-up
in emerging markets. Recently the company has embarked
on a series of non-core asset sales including the sale to
Vivendi of their SFR stake in France, with some of the returns
supporting share buyback initiatives. The forthcoming results
could see a slight de-acceleration of the recent quarterly
trend of organic sales growth but we do not foresee any
deviation from the previous guidance of 1-4% growth in
organic service revenues, stable margins and cash flow
generation of £6-7bn per annum until 2014. We also expect
the prospect of higher dividend payments from the Verizon
Wireless venture to be a driver for increased dividends from
2012 onwards providing further support for the share price.
GLAXosMItHKLIne PLC.
GlaxoSmithKline is one of the world’s leading pharmaceutical
companies focusing on six major disease areas: asthma, virus
control, infections, mental health, diabetes and digestive
conditions. The company is becoming increasingly viewed
as offering revenue growth as it emerges from the patent
cliff* and the threat of generic competition (in leading
blockbuster drugs) facing the sector. This not only includes
growth in both emerging markets and consumer healthcare
but also the pipeline of new drug opportunities. Already
this year three new products including Benlysta (lupus) have
been approved, with a further 12 prospects in late stage
development. This includes Relovair, the next generation
of asthma treatment Advair, which should support sales in
their market leading respiratory franchise. Management also
remain increasingly focused on cost reduction and improving
shareholder returns through dividend growth and share
buybacks. This is welcomed by shareholders who previously
were faced by the reality of rising Avandia related legal
charges and under performance in the share price.
Important note: There are certain circumstances in which the
indices or Individual Stock(s) to which your OLED is linked
may change, or result in calculations being adjusted from
time to time. This would be due to a change in the FTSE
100, EURO STOXX 50® and S&P 500®, or in the case of the
Individual Stock(s), a change in market conditions or other
specified events. The circumstances in which such changes
may be necessary are set out in the Terms and Conditions,
Clause 3, Part B. The Terms and Conditions can be found
within the Application Document, which is inserted in the
back of this brochure.
* “Patent cliff” is an accepted term in the Pharmaceutical sector and relates to the expiry of patents on a number of key drugs
for the large pharma companies expected to peak between 2011-13. The patent provides exclusivity and protects from
generic competition and can last up to 10 years depending on the product with the peak of patent expiry reflecting the raft
of drugs that were launched previously.
7
oled 1.
5 YeAr sterlinG GroWth deposit
With 3 YeAr eArlY mAturitY FeAture.
KeY FeAtURes.
• F
ull repayment of your Capital as long as your
deposit is held to maturity.
• M
aximum potential return of up to 42%
(AeR 7.26%*) of your Capital at maturity.
• 5 year deposit term.
• Linked to the FTSE 100 index.
• E
arly maturity feature after 3 years, which repays
your Capital plus 18% (AeR 5.67%*) if triggered.
• Minimum deposit amount £10,000.
• O
ptional Early Depositor’s Bonus for deposits
received before 19 September 2011
(see page 15 for details).
• If the performance of the FTSE 100 is nil or
negative then only your Capital will be returned
at maturity.
Please note: If you withdraw your deposit before the OLED
has reached maturity you may receive back considerably
less than your original deposit. Lloyds TSB Offshore Limited
is obliged to repay your Capital in full on the Repayment
Date. The deposits described in this brochure are not
guaranteed by any third party.
HoW Does It WoRK AnD
WHAt MIGHt I Get BACK on
tHe RePAYMent DAte?
This deposit is designed to run for a maximum of 5 years but
it has the added benefit of an early maturity feature whereby
the deposit will mature after 3 years, if the FTSE 100 has risen
by 9% or more from its closing level on the original start date
of 26 September 2011. See (2) below for full details.
If the early maturity feature is not triggered then at the end
of the 5 year term you’ll receive back your original Capital
plus 120% of any positive performance of the FTSE 100,
subject to a maximum of 42%.
Should there be nil or negative performance then you’ll receive
back only your original Capital on the Repayment Date.
1) on the Deposit start Date (26 september 2011):
The official closing level of the FTSE 100 will be
recorded as at the close of business on 26 September
2011. This will be referred to as the FTSE 100 Start Level
and will be noted against your deposit.
2) early maturity feature after 3 years (26 september 2014):
If at the close of business on 26 September 2014 (the
Early Maturity Observation Date) the official closing level
of the FTSE 100 is 9% or greater than the FTSE 100 Start
Level, your deposit will mature early and on 03 October
2014 you will receive back your original Capital plus 18%
(AeR 5.67%*). If the FTSE 100 does not show a rise of
9% or more as described above, then the early maturity
feature will not trigger and the deposit will continue to
run for its full 5 year term, as described below. The table
opposite demonstrates this.
3) on the Final observation Date (26 september 2016):
The official closing level of the FTSE 100 will be noted
on 26 September 2016. This will be known as the
FTSE 100 Final Level. The FTSE 100 Final Level will
then be compared to the FTSE 100 Start Level in order
to determine the FTSE 100 Performance. If, after this
comparison, the figure is positive it will be multiplied by
120%, in order to calculate the final return in addition
to Capital up to a maximum of 42%. If the FTSE 100
Performance is negative then you’ll receive back only
your original Capital amount. Under either scenario the
Repayment Date will be 03 October 2016.
The table opposite demonstrates this.
Ftse 100 Performance
as described in 2) & 3)
opposite
Repayment
calculation
total amount payable
on the relevant
Repayment Date
9% or greater
As the early maturity feature has been triggered,
the deposit will mature early and be repaid in
full on 3 October 2014
18% (AeR 5.67%*)
Less than 9%
As the early maturity feature has not been triggered,
the deposit will continue to run for the full 5 year term
N/A
40%
40% x 120% = 48% (exceeds maximum of 42%)
42% (AeR 7.26%*)
25%
25% x 120% = 30%
30% (AeR 5.38%*)
18%
18% x 120% = 21.60%
21.60% (AeR 3.98%*)
9%
9% x 120% = 10.80%
10.80% (AeR 2.07%*)
5%
5% x 120% = 6%
6% (AeR 1.17%*)
2%
2% x 120% = 2.40%
2.40% (AeR 0.47%*)
0%
N/A
Capital only
-4%
N/A
Capital only
-15%
N/A
Capital only
After 3 years
After 5 Years
Please note: The table above is for illustrative purposes only and is purely a guide to how the FTSE 100 may perform over
the 5 year deposit term.
* AER stands for Annual Equivalent Rate and illustrates what the rate of return would be if the return was paid and
compounded once each year.
9
oled 2.
5 YeAr sterlinG income deposit.
KeY FeAtURes.
• F
ull repayment of your Capital as long as your
deposit is held to maturity.
• L
inked to the performance of three individual
UK stocks.
• 5 year deposit term.
• P
otential annual return equivalent to 10% of
your Capital.
• Minimum deposit amount of £10,000.
• O
ptional Early Depositor’s Bonus for deposits
received before 19 September 2011 (see page
15 for details).
• There is a possibility of very little or no return
over the deposit term depending upon the
stocks’ performance.
1) on the Deposit start Date (26 september 2011):
The official closing price of each Individual Stock is
observed. Each of these will be known as the Stock Start
Level for the relevant Individual Stock.
2) on each relevant Annual Calculation Date
(as detailed in the table opposite):
The official closing price of each Individual Stock
will be recorded. Each of these will be known as the
Annual Stock Level for the relevant Individual Stock.
We’ll then compare each Annual Stock Level with the
relevant Individual Stock’s Stock Start Level. If after this
comparison all three Individual Stocks’ Annual Stock
Levels are equal to, or greater than, 98% of each relevant
Individual Stock’s Stock Start Level, you’ll receive a return
of 10% on the relevant Annual Return Payment Date.
If however one or more of the three Individual Stocks’
Annual Stock Level is less than 98% of each relevant
Individual Stock’s Stock Start Level then no return will be
paid for that year. You may receive an additional return
according to the Bonus Feature (see “What is the Bonus
Feature and how will it affect the Annual Returns?”).
Please note: If you withdraw your deposit before the OLED
has reached maturity you may receive back considerably
less than your original deposit. Lloyds TSB Offshore Limited
is obliged to repay your Capital in full on the Repayment
Date. The deposits described in this brochure are not
guaranteed by any third party.
3) on the final Annual Return Payment Date
(03 october 2016):
You’ll receive back your original Capital and, if
applicable, any Annual Return payable for that year (as
described in 2 above).
HoW Does It WoRK AnD
WHAt MIGHt I Get BACK on
tHe RePAYMent DAte?
WHAt Is tHe BonUs FeAtURe
AnD HoW WILL It AFFeCt tHe
AnnUAL RetURns?
This deposit is designed to run for 5 years. It’s linked
to three large well known UK companies with proven
track records, which have been selected by our expert
market analysts:
If on any Annual Calculation Date all three Individual Stocks’
Annual Stock Levels are equal to or greater than 98% of
each Individual Stock’s Stock Start Level then, in addition to
the return of 10% which will be paid in that year (described
in point 2), any previously missed returns will also be paid
on that year’s Annual Return Payment Date.
HSBC plc, GlaxoSmithKline PLC and Vodafone Group PLC.
Each of these will be known as an Individual Stock.
Each year we’ll measure the performance of each of the
three companies’ stocks and provided all three stocks
have remained above a 98% level of their original Stock
Start Level you’ll receive an Annual Return of 10% for that
year. Plus, as a Bonus Feature, should an Annual Return
not be payable, there is the potential of it being paid on a
subsequent Annual Return Payment Date.
Should the performance of any of the stocks be below
98% of their original Stock Start Level on each Annual
Calculation Date over the entire deposit term, you’ll receive
back only your original Capital on the Repayment Date.
Whilst there’s no limit on how many times the Bonus
Condition can be met, any previously missed Annual
Returns will only be paid once.
The chart opposite illustrates how each Individual Stock
may perform over the term of the deposit.
KeY DAtes.
Annual Calculation Date
as described in step 2 opposite
Annual Return
Payment Date
Year 1
26 September 2012
03 October 2012
Year 2
26 September 2013
03 October 2013
Year 3
26 September 2014
03 October 2014
Year 4
28 September 2015
05 October 2015
Year 5
26 September 2016
03 October 2016
Please note: The chart below is for illustrative purposes only and is purely a guide to how the Individual Stocks may perform
over the 5 year term.
* AER stands for Annual Equivalent Rate and illustrates what the rate of return would be if the return was paid and
compounded once each year.
11
oleds 3 & 4.
5 YeAr sterlinG & us dollAr
GroWth deposits.
KeY FeAtURes.
• F
ull repayment of your Capital as long as your
deposit is held to maturity.
• A choice of sterling or US dollar.
• M
aximum potential return of up to 46% of your
Capital at maturity. (AeR 7.86%* for sterling OLED
and AeR 7.75%* for US dollar OLED).
• Linked to an equally weighted basket of the FTSE
100, EURO STOXX 50® and S&P 500® indices.
• 5 year deposit term.
• M
inimum deposit amount – £10,000 for sterling
OLED and $20,000 for US dollar OLED.
• O
ptional Early Depositor’s Bonus for deposits
received before 19 September 2011 (see page
15 for details).
• If the basket performance is nil or negative then only
your Capital will be repaid at maturity.
Please note: If you withdraw your deposit before the OLED
has reached maturity you may receive back considerably
less than your original deposit. Lloyds TSB Offshore Limited
is obliged to repay your Capital in full on the Repayment
Date. The deposits described in this brochure are not
guaranteed by any third party.
HoW Does It WoRK AnD
WHAt MIGHt I Get BACK on
tHe RePAYMent DAte?
Both the sterling and US dollar deposits are linked to a
trio of indices. At the end of the 5 year term you’ll receive
back your original Capital plus 115% of any positive
combined performance of the indices basket subject to
a maximum of 46%.
Should the basket performance be nil or negative then
you’ll receive back only your original Capital on the
Repayment Date.
1) on the Deposit start Date (26 september 2011):
The official closing level of the FTSE 100, EURO STOXX
50® and S&P 500® will be recorded as at the close of
business on 26 September 2011. These three levels will
be known as the Index Start Levels for each index.
2) on the Final observation Date (26 september 2016):
The official closing level of the FTSE 100, EURO STOXX
50® and S&P 500® will be noted as at the close of
business on 26 September 2016. These levels will be
known as the Index Final Levels. For each index, the
Index Performance level will be calculated. The Index
Performance level is the difference between the Index
Final Level and the Index Start Level, expressed as a
percentage of the Index Start Level for each index. The
Average Basket Performance is the simple arithmetic
average of the Index Performance levels. If the Average
Basket Performance is positive, then it will be multiplied
by 115% in order to calculate the final return in addition
to Capital, up to a maximum of 46%. If the Average Basket
Performance is negative, then you’ll receive back only
your original Capital amount. Under either scenario the
Repayment Date will be 03 October 2016.
The table opposite demonstrates this.
Average Basket
Performance as
described opposite
Repayment
calculation
total amount
payable on the
Repayment Date
sterling
AeR*
Us dollar
AeR*
50%
50% x 115% = 57.50%
(exceeds maximum of 46%)
46%
AeR 7.86%*
AeR 7.75%*
25%
25% x 115% = 28.75%
28.75%
AeR 5.18%*
AeR 5.11%*
18%
18% x 115% = 20.70%
20.70%
AeR 3.83%*
AeR 3.78%*
9%
9% x 115% = 10.35%
10.35%
AeR 1.98%*
AeR 1.96%*
5%
5% x 115% = 5.75%
5.75%
AeR 1.12%*
AeR 1.10%*
2%
2% x 115% = 2.30%
2.30%
AeR 0.45%*
AeR 0.44%*
0%
N/A
Capital only
N/A
N/A
-4%
N/A
Capital only
N/A
N/A
-15%
N/A
Capital only
N/A
N/A
Please note: The table above is for illustrative purposes only and is purely a guide to how the Average Basket Performance
may look over the 5 year deposit term.
* AER stands for Annual Equivalent Rate and illustrates what the rate of return would be if the return was paid and
compounded once each year.
13
Questions
And AnsWers.
HoW Do oLeDs CoMPARe WItH
oRDInARY DePosIt ACCoUnts?
CAn I ACCess MY MoneY
BeFoRe tHe DePosIt MAtURes?
These OLEDs are linked to the performance of the FTSE
100, EURO STOXX 50® and S&P 500® indices or three
Individual Stocks depending on which you decide to
select. So, if the FTSE 100, EURO STOXX 50® and S&P
500® indices or three Individual Stocks perform/s poorly
you may receive back less than you would normally have
earned from an ordinary deposit account. With OLEDs
there is also the potential of no return above your original
Capital. This means that the purchasing power of your
money at the Repayment Date could be significantly
affected by inflation. Additionally, unlike an ordinary
deposit account you cannot withdraw your money early
from an OLED without incurring charges – please see the
next question for details on this.
OLEDs are fixed term deposits designed to run the full term.
In an emergency or a case of extreme need we may consider,
at our absolute discretion, a request from you to withdraw
your deposit and to close your OLED before the relevant
Repayment Date but we will be under no obligation to agree
to your request. In the event that your deposit is repaid
before the relevant Repayment Date, you acknowledge that
you may receive back less than your original deposit. This is
because the value is affected by factors including how long
you’ve held the OLED for, prevailing interest rates, market
conditions and the level of the relevant index or Individual
Stocks, which may fall as well as rise. Plus, the value of the
shares in the companies making up the relevant index may
be affected by currency fluctuations. In addition, a fixed £500
administration fee will be charged. Please refer to Clause 4,
Part B within the Terms and Conditions for more details.
ARe tHeRe AnY CHARGes?
Any management costs are included within the OLED and
there are no additional subscription charges. If you don’t
hold your OLED for its full term, a fixed £500 administration
fee will be charged. Please refer to Clause 4, Part B within
the Terms and Conditions for more details.
WHAt Is A CALL ACCoUnt
AnD WHAt’s It FoR?
When we accept your application for an OLED, we’ll open
a Call Account for you if you don’t already hold one with
us. We’ll then transfer the sum you want to deposit into
your OLED into this Call Account, adding to it any Early
Depositor’s Bonus you are entitled to. We’ll then transfer
your money into your OLED on the deposit Start Date.
The Call Account is also where your maturing deposit
amount and any annual return (if applicable) will be paid
on the deposit Repayment Date or relevant Annual Return
Payment Date.
HoW Does tHe eARLY
DePosItoR’s BonUs WoRK?
Applications received with cleared funds prior to 19
September 2011 will earn interest at 0.40% per annum
for sterling deposits and 0.25% per annum for US dollar
deposits until 26 September 2011. Please note that the
interest rate for the Early Depositor’s Bonus is subject to
change depending on the prevailing market conditions
that exist up to 26 September 2011.
If you take advantage of the Early Depositor’s Bonus
your funds will be committed to your chosen OLED and
your application cannot be cancelled before or after the
Start Date of the Deposit.
Please note that the Early Depositor’s Bonus and Call
Account fall within the scope of the European Union
Savings Tax Directive.
For more on this, please see Clause 5, Part B in the
Terms and Conditions within the application enclosed
with this brochure.
HoW WILL I KnoW HoW MY
oLeD Is PeRFoRMInG?
Once we’ve opened your account, we’ll send you
confirmation containing all the key information. Throughout
your OLED’s term, we’ll send you annual updates detailing
how your OLED is performing. Then, shortly after maturity,
we’ll let you know the return payable.
WHAt ABoUt tAX?
Under current rules any return on your OLED in addition
to your original Capital is paid without the deduction of
tax. For clients who are residents of EU member states, the
return above Capital for all OLEDs does not fall within the
scope of the Channel Islands and Isle of Man regulations
that introduced measures equivalent to those set out
within the European Savings Tax Directive. Therefore it is
important that you disclose details of any return to your
local tax authority should you need to do so.
early Depositor’s Bonus
For clients who are not residents of EU member states,
the Early Depositor’s Bonus paid to the Call Account is
paid without deduction of tax. If you are a resident of an EU
member state, this is within scope of the Channel Islands
and Isle of Man regulations that introduced measures
equivalent to those set out within the European Union
Savings Tax Directive. Please refer to Clause 5, Part B in
the Terms and Conditions detailed within the application
enclosed with this brochure.
It is your obligation to seek independent tax advice if you
are uncertain or have any concerns with regard to any local
tax implications. It is your responsibility to disclose details
of any return to your local tax authority should you need
to do so.
15
WHAt ABoUt DePosItoRs’
CoMPensAtIon sCHeMes?
WHAt IF I WAnt to
MAKe A CoMPLAInt?
United Kingdom
If you want to make a complaint about this contract or
the service you receive from us, please follow the steps
shown in our ‘How to Voice your Concerns’ brochure,
which is available from any Lloyds TSB International branch.
Alternatively, you can write to us about your concerns at
PO Box 160, 25 New Street, St Helier, Jersey JE4 8RG.
Rules and regulations made under the Financial Services
and Markets Act 2000 for the protection of depositors,
including the Financial Services Compensation Scheme, do
not apply to the financial services business of companies
within the Lloyds Banking Group carried out from offices
outside the United Kingdom. You will not be covered by
the Financial Services Compensation Scheme should you
purchase an OLED.
Guernsey
The Guernsey branch of Lloyds TSB Offshore Limited
is a participant in the Guernsey Banking Deposit
Compensation Scheme. The Scheme offers protection
for qualifying deposits up to £50,000, subject to certain
limitations. The maximum total amount of compensation is
capped at £100,000,000 in any 5 year period. Details are
available from:
Website: www.dcs.gg
Telephone: +44 (0)1481 722756
Post: PO Box 380, St Peter Port, Guernsey, GY1 3FY.
Jersey
Lloyds TSB Offshore Limited is a participant in the Jersey
Banking Depositor Compensation Scheme. The Scheme
offers protection for eligible deposits of up to £50,000.
The maximum total amount of compensation is capped
at £100,000,000 in any 5 year period. Full details of the
Scheme and banking groups covered are available on the
States of Jersey website (www.gov.je) or on request.
Isle of Man
The Isle of Man branch of Lloyds TSB Offshore Limited is
a participant in the Isle of Man Depositors’ Compensation
Scheme as set out in the Depositors’ Compensation
Scheme Regulations 2010.
You should also note that you may not be eligible for
compensation under a deposit protection guarantee
scheme available in your country of residence. If in doubt,
contact your local banking regulator, visit their website or
seek independent advice.
Are oleds
riGht For me?
every customer is unique, with individual needs and a
different appetite for risk. that’s why, before applying for
an oLeD, it’s important that you’re aware of the risks and
commitment involved. Using the checklists here will help
you decide if one or more of these oLeDs are the right
choice for you.
oLeDs CoULD Be RIGHt FoR YoU IF:
• y ou have a minimum £10,000 or US$20,000
to deposit.
• you are over 18.
• y ou won’t need to access your money for the full term
and can wait 5 years to get your money back.
• y ou understand that there are other products which
will pay a fixed rate of interest for similar periods but
you are prepared to risk receiving no return should
you decide to deposit your money into an OLED. If
you receive no return, this means that the purchasing
power of your money at the Repayment Date could
be reduced significantly by the effects of inflation.
• y ou accept that if you withdraw early you may get
back substantially less than your original deposit.
• t ypically, although not exclusively, you have some
experience or knowledge of investment markets
and you wish to deposit some (but not all) of your
Capital for the full term of the selected OLED,
as part of a diversified approach to savings and
investments. We don’t provide any advice or make
any recommendations as to the suitability of these
deposits for you or your circumstances.
• y ou understand your deposit is not invested directly
in the companies that make up the FTSE 100, EURO
STOXX 50® or S&P 500® indices or the Individual
Stocks. Therefore you will not receive any dividend
payments from them.
For oLeD 1:
• y ou understand that your maximum return is capped
at 42% and this is the most you will receive regardless
of how well the underlying index performs.
• y ou believe that the FTSE 100 index will rise but also
appreciate that it may fall over the next 5 years, which
means you could receive only your Capital amount at
maturity.
For oLeD 2:
• y ou understand that the number of stocks that the
performance is linked to is three. This means that if
the share price of only one out of the three stocks falls
to less than 98% when compared to the Stock Start
Level on each of the five Annual Calculation Dates,
then you’ll only receive back your Capital at maturity.
For oLeDs 3 & 4:
• y ou believe that the related indices will rise but also
appreciate that they may fall over the next 5 years,
which means that you could receive only your Capital
amount at maturity.
• y ou understand that your maximum return is capped
at 46% and this is the most you will receive regardless
of how well the underlying indices performs.
YoU MAY PReFeR AnotHeR oF oUR MAnY ACCoUnt oPtIons IF:
• y ou may need access to your money over the next
5 years.
• y ou want a regular income or fixed rate of interest
from your deposit.
• y ou won’t have enough funds, after submitting
your application, for any unexpected costs or
emergencies.
• y ou don’t want to risk receiving a zero return above
your original Capital after 5 years.
17
WhAt to do noW.
If you’re ready to apply for an oLeD now or want to
find out more, we make everything simple. You can
apply by post or go online – whichever’s easier for you.
either way, you’ll need to get your application to us no
later than 12 september 2011.
APPLY onLIne
Visit lloydstsb-offshore.com/oled to apply directly online,
or to download an application.
APPLY BY Post
Just complete and return the enclosed application to your
local Lloyds TSB International representative. You also need
to provide us with your deposit amount – here’s how:
If you’re a Lloyds tsB customer.
We can take your deposit directly from your account up
to 19 september 2011. If so, you’ll need to ensure the
funds are cleared by this date or you may miss out on your
chosen OLED. To take advantage of our Early Depositor’s
Bonus, just ask us to debit your account earlier.
If you’re not a Lloyds tsB customer
or you’re sending funds from elsewhere.
For sterling deposits, please enclose a cheque made
payable to yourself with your completed application.
For US dollar deposits, please send a banker’s draft
payable to yourself along with your application. Either way,
you need to make sure that we receive your cheque or
banker’s draft no later than 05 september 2011, to allow
time for the funds to clear.
neeD soMe HeLP?
For more details on any OLED or if you need help
with your application, please contact your local
Lloyds TSB International representative – they’ll be
happy to help you.
lloydstsb-offshore.com
Issued by Lloyds TSB Offshore Limited.
JERSEY OFFICE:
Lloyds TSB Offshore Limited, PO Box 351, 25 New Street, St. Helier, Jersey JE4 8RG.
GUERNSEY OFFICE:
Lloyds TSB Offshore Limited, PO Box 123, Sarnia House, Le Truchot, St. Peter Port, Guernsey GY1 4EF.
ISLE OF MAN OFFICE:
Lloyds TSB Offshore Limited, PO Box 351, Peveril Buildings, Peveril Square, Douglas, Isle of Man IM99 2RZ.
Tel: 0845 6015168 if calling from UK and 08702 402281 if calling from outside UK. Fax: +44 (0)1624 618677.
Lloyds TSB Offshore Limited is incorporated in Jersey, and its registered office and principal place of business is PO Box 160, 25 New Street, St Helier, Jersey JE4 8RG. Registered in
Jersey, number 4029. Regulated by the Jersey Financial Services Commission..
The Guernsey branch of Lloyds TSB Offshore Limited is licensed to conduct banking, investment and insurance business by the Guernsey Financial Services Commission under
the Banking Supervision (Bailiwick of Guernsey) Law 1994, the Protection of Investors (Bailiwick of Guernsey) Law 1987 and the Insurance Managers and Insurance Intermediaries
(Bailiwick of Guernsey) Law 2002.
The Isle of Man branch of Lloyds TSB Offshore Limited is licensed by the Isle of Man Financial Supervision Commission and registered with the Insurance and Pensions Authority in
respect of General Business.
Lloyds TSB Offshore Limited is a Jersey registered company that is a wholly owned subsidiary of Lloyds TSB Bank plc. Lloyds TSB Bank plc is incorporated in the United Kingdom,
regulated by the UK Financial Services Authority and is part of the Lloyds Banking Group. Lloyds TSB Offshore Limited places funds with Lloyds TSB Bank plc. Prospective depositors
should satisfy themselves as to the financial standing of Lloyds TSB Offshore Limited and its parent based upon publicly available information. An abridged version of Lloyds TSB
Offshore Limited’s latest annual financial statements is available on our website at lloydstsb-offshore.com
Lloyds TSB Offshore Limited is not, and is not required to be, authorised under the Financial Services and Markets Act 2000 of the United Kingdom and therefore is not subject to the
rules and regulations of the Financial Services Compensation Scheme made under that Act for the protection of depositors.
This brochure has been approved by Lloyds TSB Private Banking Limited which is authorised and regulated by the Financial Services Authority registration number 122626.
Lloyds TSB Offshore Holdings Limited has registered the business name of Lloyds TSB International in Jersey and the Isle of Man and has licensed it to Lloyds TSB Offshore Limited.
Complaints involving the Isle of Man branch of Lloyds TSB Offshore Limited that it cannot settle should be referred to the Financial Services Ombudsman Scheme for the Isle of Man.
The information contained in this brochure does not constitute an invitation to buy or the solicitation of an offer to sell securities or accept deposits or to provide any other products
or services in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation, nor should it be construed to constitute any investment advice.
Legislation or regulations in your home jurisdiction may prohibit you from entering into such a transaction with us. We reserve the right to make final determination on whether you
are eligible for any products or services.
Residents or Nationals of certain jurisdictions may be subject to exchange controls and should seek independent advice before entering into any transactions with us.
The paid up capital and reserves of Lloyds TSB Offshore Limited was £709m at 31 December 2010.
Telephone calls may be recorded and monitored.
OB2371 / 06 11