Principal-protected Notes Regulations

Marginal note:Information — early redemption

12 Before redeeming or purchasing a principal protected note before its maturity on the request of an investor, an institution must disclose to the investor

• (a) the value of the note on the last business day before the day that the investor requests the redemption or purchase, or the value of the note based on the last available measure of the index or reference point on which the interest is determined;

• (b) the amount of any penalty or charge;

• (c) the net amount that the investor would have received for the redemption or purchase after deducting the amount referred to in paragraph (b) from the value of the note referred to in paragraph (a); and

• (d) when and how the value of the note will be calculated, and the fact that the value of the note may differ from the value referred to in paragraph (a).