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RBS 12-Month Oil Total Return Index (USD) (the "Benchmark Index")
The Benchmark Index utilizes a rules-based methodology to provide exposure to a
hypothetical notional investment in a series of 12 light sweet crude oil (WTI)
futures contracts that are traded on the New York Mercantile Exchange. The 12
futures contracts comprising the Benchmark Index on any given day will be the
futures contracts scheduled to expire in the immediately following calendar
month and futures contracts scheduled to expire in each of the eleven months
thereafter. The Benchmark Index is rebalanced on a monthly basis so that each of
the 12 contracts is equally weighted upon each rebalancing. For more information
regarding the RBS 12-Month Oil Total Return Index (USD) methodology please see
the RBS Oil Trendpilot ETN pricing supplement.
Historical Performance (%) -- as of 12/31/12
1-MONTH (%) 3-MONTH (%)
----------------------------------------------------- ----------- -----------
RBS Oil Trendpilot[] ETN Daily Redemption Value(1) -0.04 -5.81
RBS Oil Trendpilot[] Index (USD) 0.01 -5.63
RBS 12-Month Oil Total Return Index (Benchmark Index) 2.10 -1.21
Cash rate on 12/31/12 was 0.09% -- --
SINCE RBS ETN INCEPTION
YEAR-TO-DATE (%) 1-YEAR (%) (9/13/2011) %)
---------------- ---------- -----------------------
-11.53 -11.53 -7.98
-10.77 -10.77 -7.00
-7.43 -7.43 0.51
-- -- --
Source: Bloomberg. The table above presents the actual historical performance of
the RBS ETNs, the Index and the RBS 12-Month Oil Total Return Index over the
speci[]ed periods. It is not possible to invest directly in an index. For
information regarding the performance of the Index, see pages PS-14 to PS-17 of
the pricing supplement of the RBS ETNs []led with the U.S. Securites and
Exchange Commisson (SEC). Past performance does not guarantee future results.
(1) Includes the deduction of the annual investor fee, which accrues on a daily
basis. The annual investor fee will be equal to (i) 1.10% per annum when the
Index is tracking the Benchmark Index, and (ii) 0.50% per annum when the Index
is tracking the Cash Rate.
CERTAIN RISK CONSIDERATIONS: The RBS ETNs involve risks not associated with an
investment in conventional debt securities, including a possible loss of some or
all of your investment. The level of the Index must increase by an amount
suf[]cient to offset the aggregate investor fee applicable to the RBS ETNs in
order for you to receive at least the principal amount of your investment back
at maturity or upon early repurchase or redemption. The RBS ETNs and the Index
do not provide exposure to spot prices of crude oil and, consequently, may not
be representative of an investment that provides exposure to crude oil. The
Index may underperform the Benchmark Index, and is expected to perform poorly in
volatile markets. Even though the RBS ETNs are listed on the NYSE Arca, a
trading market may not develop and the liquidity of the RBS ETNs may be limited
and/or vary over time, as RBS plc is not required to maintain any listing of the
RBS ETNs. The RBS ETNs are not principal protected and do not pay interest. Any
payment on the RBS ETNs is subject to the ability of RBS plc, as the issuer, and
RBS Group, as the guarantor, to pay their respective obligations when they
become due. You should carefully consider whether the RBS ETNs are suited to
your particular circumstances before you decide to purchase them. We urge you to
consult with your investment, legal, accounting, tax and other advisors with
respect to any investment in the RBS ETNs.
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 []led 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 []led 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). RBS Oil Trendpilot[] Index (USD) and RBS 12-Month
Oil Total Return Index (USD) are the property of RBS plc. The Index and the
Benchmark Index are calculated by NYSE Arca, a wholly-owned subsidiary of NYSE
Euronext. The RBS ETNs, which track the Index and may track the Benchmark Index,
are not issued, sponsored, endorsed, sold or promoted by NYSE Arca, and NYSE
Arca makes no representation regarding the advisability of investing in the
securities.
NYSE ARCA MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIMS
ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH
RESPECT TO THE INDEX OR BENCHMARK INDEX OR ANY DATA INCLUDED THEREIN. IN NO
EVENT SHALL NYSE ARCA HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR
TWTI CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE
POSSIBILITY OF SUCH DAMAGES.
Copyright [C] 2013 RBS Securities Inc. All rights reserved. RBS Securities Inc.,
a U.S. registered broker-dealer, member of FINRA and SIPC, is an indirect
wholly-owned subsidiary of The Royal Bank of Scotland plc.
www.rbs.com/etnUS | TOLL FREE: 855-RBS-ETPS | Not FDIC Insured. May Lose Value.
Dated January 15, 2013
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