CALCULATED BY ALTL
S & P DOW JONES LISTED
INDICES Custom NYSE
ARCA.
Selected RisK COnsideratiOns
Investing in the RBS ETNs involves a number of risks. Some of the risks
relating to the RBS ETNs are summarized here, but we urge you to read the more
detailed explanation of risks described under "Risk Factors" in the applicable
pricing supplement.
You may lose all or a significant portion of your investment: The RBS ETNs are
not principal protected. If the level of the Index decreases, or does not
increase by an amount sufficient to offset the investor fee, you will receive
less, and possibly significantly less, at maturity or upon early repurchase or
redemption than your original investment in the RBS ETNs. The RBS ETNs involve
risks not associated with an investment in conventional debt securities.
Credit risk of RBS plc and RBS Group: The RBS ETNs are unsecured and
unsubordinated obligations of RBS plc, as issuer, and are guaranteed by RBS
Group. You are dependent on RBS plc's ability to pay all amounts due on the RBS
ETNs, and therefore you are subject to the credit risk of RBS plc and to
changes in the market's view of RBS plc's creditworthiness. In addition,
because the RBS ETNs are guaranteed by RBS Group, you are also dependent on the
credit risk of RBS Group in the event that RBS plc fails to make any payment or
delivery required by the terms of the RBS ETNs.
Issuer redemption: RBS plc has the right to redeem or "call" the RBS ETNs, in
whole but not in part, at its sole discretion at any time from the initial
settlement date to and including 9/3/2042. In addition, the implementation of
the RBS Retail Investor Products Exit Plan increases the likelihood of our
calling the RBS ETNs prior to maturity.
Strategy Risk: The Index uses a systematic relative strength strategy to select
which of the three Underlying Indices it will track for a given calendar month.
Because the relative strength score takes into account the performance of each
Underlying Index over certain past periods, it may not capture the short-term
trends of any Underlying Index or successfully select the best-performing
Underlying Index in the following month. There is no assurance that the
strategy will be successful or that the Index will outperform any Underlying
Index. The relative strength score is not predictive of superior relative
performance in the following month.
Market Risk: The return on the ETNs will depend on the performance of the Index
(which in turn will depend on the performance of the Underlying Indices) and
other market conditions. In particular, the ETNs are subject to the risk that
large-capitalization U.S equities may underperform other segments of the equity
market or the equity market in general.
A trading market for the RBS ETNs may not develop: Although the RBS ETNs are
listed on NYSE Arca, Inc., there is no guarantee that the listing will be
maintained or that a secondary market will develop. RBS plc is not required to
maintain any listing of the RBS ETNs.
No Interest Payments: You will not receive any interest payments on the RBS
ETNs.
Restrictions on your ability to offer RBS ETNs for repurchase by us: You must
offer at least 20,000 RBS ETNs to us for any single repurchase and satisfy the
other requirements described in the applicable pricing supplement for your
repurchase offer to be considered.
Actual trading price or market price may vary significantly from indicative
value and daily redemption value: The indicative value is meant to approximate
the intrinsic economic value of the RBS ETNs from time to time. redemption is
based on the daily redemption value, which is determined by the calculation
agent. If you purchase or sell RBS ETNs in the secondary market, you will pay
or receive the market price of an ETN. Factors that may influence the market
price of the RBS ETNs include: the level of the Index; the index components in
the Underlying Index; supply and demand for the RBS ETNs; economic, financial,
political, regulatory or judicial events that affect the level of the Index;
and the actual or perceived creditworthiness of RBS plc and RBS Group.
The Index has very limited actual history and may perform in unexpected ways:
The Index was created by RBS plc, as Index Sponsor, and established on August
28, 2012. As such, it has very limited actual history. The historical
performance of the Index should not be taken as indication of future
performance.
Uncertain Tax Treatment: Significant aspects of the tax treatment of the RBS
ETNs are uncertain. You should consult your own tax adviser about your own
situation.
The RBS ETNs are not suitable for all investors. You should carefully read the
relevant pricing supplement and prospectus, including the more detailed
explanation of the risks involved in any investment in the RBS ETNs as
described in the "Risk Factors" section of the pricing supplement, before
investing.
IMPORTANT INFORMATION: RBS plc and RBS Group have filed a registration
statement (including a prospectus) with the U.S. Securities and Exchange
Commission (SEC) for the offering of RBS ETNs to which this communication
relates. Before you invest in any RBS ETNs, you should read the prospectus in
that registration statement and other documents that have been filed by RBS plc
and RBS Group with the SEC for more complete information about RBS plc and RBS
Group, and the offering. You may get these documents for free by visiting EDGAR
on the SEC's web site at www.sec.gov. Alternatively, RBS plc,
RBS Securities Inc. (RBSSI) or any dealer participating in the offering will
arrange to send you the prospectus and the pricing supplement at no charge if
you request it by calling 1-855-RBS-ETPS (toll-free).
RECENT DEVELOPMENTS: On June 13, 2013, we announced that we would be exiting
the structured retail investor products business that is responsible for
issuing and maintaining the RBS ETNs, and that we expect to move such business
into a runoff organization which will go through a process of restructuring and
/ or business sales (the "RBS Retail Investor Products Exit Plan"). The
implementation of the RBS Retail Investor Products Exit Plan increases the
likelihood that the RBS ETNs will be redeemed by us prior to maturity. We plan
to continue to maintain and issue the RBS ETNs, but our plans could change. We
cannot give you any assurances as to any minimum period of time that you may
hold the RBS ETNs before we redeem them at our option.
RBS US Large Cap Alternator Index[TM] (USD), is the property of The Royal Bank of
Scotland plc, which has contracted with S & P Opco, LLC (a subsidiary of
S & P Dow Jones Indices LLC) ("S & P Dow Jones Indices") to maintain and calculate
the Index. The S & P 500([R]) Index, S & P 500 Low Volatility Index([R]) and S & P
500([R])
Equal Weight Index[TM] (including the total return versions) are the exclusive
property of S & P Dow Jones Indices and have been licensed for use by S & P Dow
Jones Indices in connection with the Index. S & P Dow Jones Indices, its
affiliates and their third party licensors shall have no liability for any
errors or omissions in calculating the Index. S & P([R]) is a registered
trademark of Standard & Poor's Financial Services LLC ("SPFS") and Dow
Jones([R]) is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow
Jones"). These trademarks have been licensed to S & P Dow Jones Indices.
S & P([R]), S & P 500([R]), S & P 500 Low Volatility Index([R]), S & P 500([R]) Equal
Weight Index[TM], S & P 500 Equal Weight Index[TM]and S & P 500[R] EWI[] are trademarks
of SPFS and together with "Calculated by S & P Dow Jones Indices" and its related
stylized mark(s) have been licensed for use by RBSSI and its affiliates. The
RBS US Large Cap Alternator [] ETNs, are not sponsored, endorsed, sold or
promoted by S & P Dow Jones Indices, SPFS, Dow Jones, their affiliates or their
third party licensors, and neither S & P Dow Jones Indices, SPFS, Dow Jones,
their affiliates or their third party licensors make any representation
regarding the advisability of investing in such RBS ETNs.
Copyright Copyright [C] RBS Securities Inc.
RBS Securities Inc. is a U.S. registered broker-dealer, member of FINRA and
SIPC, and an indirect wholly-owned subsidiary of The Royal Bank of Scotland plc
and The Royal Bank of Scotland Group plc.
www.rbs.com/etnUS | TOLL FREE: 855-RBS-ETPS | Not FDIC Insured. May Lose Value. Dated October 11, 2013
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