Filed pursuant to Rule 433. Registration Statement Nos. 333-184147 and 333-184147-01
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RBS Exchange Traded Notes
RBS Gold Trendpilot[] ETN (TBAR)
RBS ETN Details
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Issuer The Royal Bank of Scotland plc
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Guarantor The Royal Bank of Scotland Group plc
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Ticker TBAR
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Intraday Indicative Value[]Ticker TBAR.IV
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CUSIP/ISIN 78009L407/ US78009L4077
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Primary Exchange NYSE Arca
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Maturity 2/15/2041
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Index RBS Gold Trendpilot[] Index (USD) (Bloomberg symbol: "TPGLDUT
Index"), which tracks either the Price of Gold Bullion or the Cash
Rate depending on the relative performance of the Price of Gold
Bullion.
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Price of Gold Bullion London Gold PM Fixing Price in USD published by the London Bullion
Market Association (Bloomberg page: "GOLDLNPM Index")
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Cash Rate Yield on a hypothetical notional investment in 3-month U.S. Treasury
bills as of the most recent weekly auction (Bloomberg page:
"USB3MTA Index")
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Annual Investor Fee (accrued When the Index is tracking the Price of Gold Bullion: 1.00% per[]
on a daily basis) annum. When the Index is tracking the Cash Rate: 0.50% per
annum.
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Repurchase at your option You may offer your RBS ETNs to RBS plc for repurchase on any
business day on or prior to 2/7/2041, provided that you offer a
minimum of 20,000 RBS ETNs for any single repurchase and follow
the procedures described in the pricing supplement.
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Early redemption at our option We may redeem all of the RBS ETNs at our discretion at any time on
or prior to 2/13/2041. Pursuant to our announced plan to exit the
structured retail investor products business, the likelihood that we
will redeem the RBS ETNs prior to maturity has increased. See
"Recent Developments" on page 4 for more information.
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Daily Redemption Value Upon early repurchase or redemption or at maturity, you will receive
a cash payment equal to the daily redemption value per RBS ETN.
The daily redemption value on the relevant valuation date will be
published on www.rbs.com/etnus/tbar*.
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Ranking and Guarantee The RBS ETNs are unsecured and senior debt obligations of RBS
plc, as the Issuer, and RBSG, as the Guarantor of the Issuer's
obligations under the RBS ETNs. Any payment on the ETNs is
subject to the ability of the Issuer and Guarantor to pay their
respective obligations as they become due.
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* Information contained on our website is not incorporated by reference in, and
should not be considered a part of, this[]document.
To find out more
Call toll free 855-RBS-ETPS or visit www.rbs.com/etnUS
Not FDIC Insured. May Lose Value.
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ETN Overview:
The RBS Gold Trendpilot[] Exchange Traded Notes ("RBS ETNs") are unsecured and
senior obligations of The Royal Bank of Scotland plc ("RBS plc"), and are fully
and unconditionally guaranteed by The Royal Bank of Scotland Group plc ("RBS
Group"). Any payments on the RBS ETNs when they become due at maturity or upon
early repurchase or redemption are dependent on the ability of RBS plc and RBS
Group to pay, and are also subject to market risk.
RBS Gold Trendpilot[] ETNs track the RBS Gold Trendpilot[] Index (USD) which
provides:
Trend-following exposure using an objective and transparent methodology to
either the Price of Gold Bullion or the Cash Rate;
Gold Exposure in positive trending markets by tracking the Price of Gold
Bullion; and
Cash Rate Exposure in negative trending markets by tracking a hypothetical
investment in 3-month U.S. Treasury bills, with the yield determined as of the
most recent weekly auction.
Illustration of the Trendpilot([]) Index Methodology
A positive trend is established:
The Index will track the Price of Gold Bullion
If the Price of Gold Bullion is at or above its historical 200-Index business
day* simple moving average for five consecutive Index business days
A negative trend is established:
The Index will track the Cash Rate
If the Price of Gold Bullion is below its historical 200-Index business day
simple moving average for five consecutive Index business days
A negative trend is established
A positive trend is established
Hypothetical Price of Gold Bullion
Hypothetical 200-Index business day simple moving average
*An "Index business day" is a day on which the principal exchange on which the
components of the Benchmark Index trade is open for regular trading sessions
for at least three hours.
The above graph illustrates the operation of the Trendpilot[] Index
Methodology. It does not reflect any actual performance of the Price of Gold
Bullion or the Index, and is not an indication of how the Price of Gold Bullion
or the Index may perform in the future. The hypothetical illustration above
also does not include any fees, transaction costs or expenses.
If neither of the above conditions is satisfied, the trend of the Price of Gold
Bullion will be the same as the trend of the Price of Gold Bullion on the
immediately preceding Index business day. The Index will implement any trend
reversal at the open of trading on the second Index business day immediately
following the Index business day on which the Price of Gold Bullion trend
switches from positive to negative or from negative to positive, as the case
may be.
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Historical Performance (%) -- as of 12/31/2013
annualized since
QUARTER- Year-to- ANNUALIZED ANNUALIZED ANNUALIZED RBS ETN
TO-DATE (%) date (%) 1-Year (%) 3-Year (%) 5-Year (%) inception (2/17/11) (%)
--------------------------------------------------- ----------- -------- ---------- ---------- ---------- -----------------------
RBS Gold Trendpilot[] ETN Daily Redemption Value(1) -0.11 -3.51 -3.51 -- -- 3.98
RBS Gold Trendpilot[] Index 0.02 -2.95 -2.95 -- -- 4.78
Price of Gold Bullion -9.20 -27.33 -27.33 -5.01 6.73 -4.61
Source: Bloomberg. The table above presents the actual performance of the RBS
ETN Index, and the Price of Gold Bullion over the specified periods. It is not
possible to invest directly in an index. For information regarding the
performance of the Index, see pages PS-12 to PS-16 of the pricing supplement to
the RBS ETNs filed with the U.S. Securities and Exchange Commission (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) 1.00% per annum when the
Index is tracking the Price of Gold Bullion, and (ii) 0.50% per annum when the
Index is tracking the Cash Rate. The per annum cash rate on 12/31/13 was 0.07%
..
Gold Bullion Performance -- as of 12/31/2013
The graph to the left is the historical performance of the Price of Gold
Bullion and its 200-Index business day simple moving average. This illustration
does not reflect any historical Trendpilot[] Index performance.
1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
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Price of Gold
Bullion 22.64 37.01 126.55 15.19 -32.60 14.94 -16.31 -19.38 6.00 18.96 24.53 -15.26 -2.84
Cash Rate
(Year-End) 6.15 9.34 12.07 14.99 11.04 7.98 8.94 7.75 7.02 5.49 5.96 8.22 7.77
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
------------- ----- ----- ------ ----- ------ ----- ------ ------ ----- ----- ------ ------ -----
Price of Gold
Bullion -3.11 -8.56 -5.73 17.68 -2.17 0.98 -4.59 -21.41 -0.83 0.85 -5.44 0.75 25.57
Cash Rate
(Year-End) 6.53 3.91 3.24 3.06 5.57 4.91 5.08 5.43 4.52 5.30 5.70 1.71 1.19
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
------------- ----- ----- ------ ----- ------ ----- ------ ------ ----- ----- ------ ------ -----
Price of Gold
Bullion 19.89 4.65 17.77 23.20 31.92 4.32 25.04 29.24 8.93 8.26 -27.33
Cash Rate
(Year-End) 0.89 2.23 3.91 4.88 3.31 0.05 0.11 0.18 0.03 0.09 0.07
The table above does not reflect any Index performance. The Index performance
is not the same as the performance of the Price of Gold Bullion. The Index may
underperform the Price of Gold Bullion over various time periods, and may track
the Cash Rate for extended periods of time in a low interest rate environment.
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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 12/4/2040. In addition, the implementation of
the RBS Retail Investor Products Exit Plan (as described below under "Recent
Developments") increases the likelihood of our calling the RBS ETNs prior to
maturity.
Strategy Risk: The RBS Trendpilot[] ETN uses a trend-following strategy that
seeks to capitalize on trends in the Price of Gold Bullion based on its closing
level relative to its 200-Index business day moving average. This strategy
differs from one that seeks continuous long-only exposure to a single asset.
The RBS Trendpilot[] ETN Index is expected to perform poorly in non-trending
volatile markets. Movements in the Price of Gold Bullion or the Cash Rate may
have a material and adverse impact on the RBS Trendpilot[] ETN Index's
performance. There is no assurance that the strategy will be successful or that
it will outperform the Price of Gold Bullion or the Cash Rate.
Market Risk: The return on the RBS ETNs will depend on the performance of the
Index (which in turn will depend on the performance of the Price of Gold
Bullion and the Cash Rate) and other market conditions. In particular, the RBS
ETNs are subject to the risk that the Price of Gold Bullion may be affected by
numerous factors including macroeconomic factors such as the structure of and
confidence in the global monetary system, expectations of the future rate of
inflation, the relative strength of confidence in the U.S. dollar, interest
rates, or other events in general. The Price of Gold Bullion has recently been,
and may continue to be, extremely volatile.
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. Any payment on
the RBS ETNs at maturity or upon early repurchase or 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 RBS ETN. Factors that may influence the market price of the
RBS ETNs include: the level of the Index; the performance of, and volatility
in, the Benchmark 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 limited actual history and may perform in unexpected ways: The
RBS Trendpilot[] ETN Index was created by RBS plc, as Index Sponsor, and
established on November 16, 2010. As such, it has limited actual history and
may perform in unexpected ways. 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 complex and 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: The Royal Bank of Scotland plc (RBS plc) and The Royal
Bank of Scotland Group plc (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 Gold Trendpilot[] Index (USD), is the property of The Royal Bank of
Scotland plc, which has contracted with SandP Opco, LLC (a subsidiary of SandP Dow
Jones Indices LLC) ("SandP Dow Jones Indices") to maintain and calculate the
Index. SandP Dow Jones Indices shall have no liability for any errors or
omissions in calculating the Index. SandP([R]) is a registered trademark of
Standard and 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 SandP Dow Jones Indices. "Calculated by SandP Dow
Jones Indices" and its related stylized mark(s) have been licensed for use by
RBSSI and its affiliates. The RBS Gold Trendpilot[] ETNs, are not sponsored,
endorsed, sold or promoted by SandP Dow Jones Indices, SPFS, Dow Jones, their
affiliates or their third party licensors, and neither SandP 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. All rights reserved.
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 January 10, 2014
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