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Filed pursuant to Rule 433 | Registration Statement Nos. 333-162219 and
333-162219-01
RBS Exchange Traded Notes
RBS NASDAQ-100([R]) Trendpilot[] ETN (TNDQ)
The RBS NASDAQ-100([R]) 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 NASDAQ-100([R]) Trendpilot[] ETNs track the RBS NASDAQ-100([R])
Trendpilot[] Index (USD) which provides:
Trend-following exposure using an objective and transparent methodology to
either the NASDAQ-100([R]) Total Return Index(SM) or the Cash Rate;
NASDAQ-100([R]) Exposure in positive trending markets by tracking the
NASDAQ-100([R]) Total Return Index(SM), the level of which incorporates the
reinvestment of any cash dividends paid on its component securities. The RBS
ETNs do not pay interest or dividends; and Cash Rate Exposure in negative
trending markets by tracking a hypothetical investment in 3-month U.S. Treasury
bills as of the most recent weekly auction.
Illustration of the Trendpilot([]) Index Methodology
The above graph illustrates the operation of the Trendpilot[] Index
Methodology. It does not re[]ect any actual performance of the Benchmark Index
or the Index, and is not an indication of how either 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 satis[]ed, the trend of the Benchmark
Index will be the same as the trend of the Benchmark Index on the immediately
preceeding 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 Benchmark Index trend switches from positive to
negative or from negative to positive, as the case may be.
(1)Benchmark Index Dividend Yield means the sum of the gross dividends paid on
the securities comprising the Benchmark Index (which is a total return index)
over the prior 12 months ending 6/29/2012 divided by the closing level of the
price return version of the Benchmark Index as of 6/29/2012.
Not FDIC Insured. May Lose Value.
RBS ETN Details
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Issuer The Royal Bank of Scotland plc
---------------- ----------------------------------
Guarantor The Royal Bank of Scotland
Group plc
---------------- ----------------------------------
Ticker TNDQ
---------------- ----------------------------------
Intraday TNDQ.IV
Indicative Value
Ticker
---------------- ----------------------------------
CUSIP 78009P143
---------------- ----------------------------------
ISIN US78009P1434
---------------- ----------------------------------
Primary NYSE Arca
Exchange
---------------- ----------------------------------
Maturity 12/13/2041
---------------- ----------------------------------
Benchmark 0.99%
Index Dividend
Yield(1)
---------------- ----------------------------------
Index RBS NASDAQ-100([R]) Trendpilot(TM)
Index (USD) (Bloomberg
symbol: "TPNDQUT Index"),
which tracks the Benchmark
Index or the Cash Rate
depending on the relative
performance of the Benchmark
Index on a simple historical
moving average basis.
---------------- ----------------------------------
Benchmark NASDAQ-100([R]) Total Return
Index Index(SM) (Bloomberg page:
"XNDX Index")
---------------- ----------------------------------
Cash Rate Yield on a hypothetical notional
investment in 3-month U.S.
Treasury bills as of the most re-
cent weekly auction (Bloomberg
page: "USB3MTA Index")
---------------- ----------------------------------
Annual Investor When the Index is tracking the
Fee Benchmark Index: 1.00% per
(accrued on a annum. When the Index is
daily basis) tracking the Cash Rate: 0.50%
per annum.
---------------- ----------------------------------
Repurchase at You may offer your RBS ETNs
your option to RBS plc for repurchase on
any business day on or prior to
12/5/2041, provided that you
offer a minimum of 20,000 RBS
ETNs for any single repurchase
and follow the procedures
described in the pricing
supplement.
---------------- ----------------------------------
Early We may redeem all of the RBS
redemption at ETNs at our discretion at any
our option time on or prior to 12/11/2041.
---------------- ----------------------------------
Daily Upon early repurchase or
Redemption redemption or at maturity, you
Value 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/TNDQ*.
---------------- ----------------------------------
* Information contained on our website is not incorporated by reference in, and
should not be considered a part of, this document.
To []nd out more
Call toll free 855-RBS-ETPS or visit www.rbs.com/etnUS
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NASDAQ-100([R]) Total Return Index(SM)
Top 10 Holdings -- as of 06/30/2012
COMPANY TICKER WEIGHT (%)
---------------------- ------ ----------
Apple, Inc. AAPL 18.79
Microsoft Corporation MSFT 8.84
Google, Inc. GOOG 5.19
Oracle Corporation ORCL 5.08
Intel Corporation INTC 4.61
Amazon.com, Inc. AMZN 3.54
QUALCOMM, Inc. QCOM 3.28
Cisco Systems, Inc. CSCO 3.17
Comcast Corporation CMCSA 2.32
Amgen, Inc. AMGN 1.95
Source: Bloomberg
Historical Performance (%) -- as of 06/30/2012
SINCE RBS ETN
INCEPTION
1-MONTH (%) 3-MONTH (%) (12/8/2011) (%)
------------------------------------------ ----------- ----------- ---------------
RBS NASDAQ-100([R]) Trendpilot[] ETN Daily
Redemption Value(1) -0.03 -7.54 11.55
RBS NASDAQ-100([R]) Trendpilot(TM) Index 0.01 -7.36 12.12
NASDAQ-100([R]) Total Return Index(SM)
(Benchmark Index) 3.67 -4.79 15.23
Cash rate on 06/30/12 was 0.095% -- -- --
The table above presents the actual performance of the Index, the RBS ETNs and
the NASDAQ-100([R]) Total Return Index(SM) (the Benchmark Index) over the
speci[]ed periods. For information regarding the performance of the Index, see
pages PS-40 to PS-44 of the pricing supplement to the RBS ETNs []led 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 Benchmark Index, and (ii) 0.50% per annum when the Index
is tracking the Cash Rate.
NASDAQ-100([R]) Total Return Index(SM) Performance -- as of 06/30/2012
NASDAQ-100([R]) Total Return Index(SM) 1-Year Annual Return Comparison (%)(1)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012-Q2
-------------------------------------- ------ ------ ------ ----- ----- ---- ---- ----- ------ ----- ----- ---- -------
NASDAQ-100([R]) Total Return Index(SM) -36.82 -32.62 -37.52 49.49 10.75 1.89 7.28 19.24 -41.57 54.61 20.14 3.66 15.44
-------------------------------------- ------ ------ ------ ----- ----- ---- ---- ----- ------ ----- ----- ---- -------
Cash Rate (Year-End) 5.70 1.71 1.19 0.89 2.23 3.91 4.88 3.31 0.05 0.11 0.18 0.03 0.10
(1) The table above does not re[]ect any Trendpilot[] Index performance. The
Trendpilot[] Index performance is not the same as the NASDAQ-100([R]) Total
Return Index(SM) performance. The Trendpilot[] Index may underperform the
NASDAQ-100([R]) Total Return Index(SM) over various time periods, and may track
the Cash Rate for extended periods of time in a low interest rate environment.
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 Index may underperform
the Benchmark Index, and is expected to perform poorly in volatile markets.
Liquidity of the market for RBS ETNs may vary over time. 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 plc, 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: The Royal Bank of Scotland plc (RBS plc) and The Royal
Bank of Scotland Group plc (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).
NASDAQ([R]), OMX([R]), NASDAQ OMX([R]), NASDAQ-100([R]), NASDAQ-100 Index([R])
and NASDAQ-100([R]) Total Return Index(SM) are registered trademarks and
service marks of The NASDAQ OMX Group, Inc. and are licensed for use by RBS
plc.
The Index is the property of RBS plc. RBS plc has contracted with The NASDAQ
OMX Group, Inc. (which with its af[]liates and subsidiaries is referred to as
the "Corporations") to calculate and maintain the Index, either directly or
through a third party. Currently, the Index is calculated and maintained by
Standard and Poor's ("S and P") on behalf of The NASDAQ OMX Group, Inc. S and P and the
Corporations shall have no liability for any errors or omissions in calculating
the Index. The RBS ETNs, which are based on the Index, have not been passed on
by the Corporations or S and P as to their legality or suitability and are not
sponsored, endorsed, sold or promoted by the Corporations or S and P. THE
CORPORATIONS AND S and P MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO
THE RBS ETNS.
Copyright [C] 2012 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 and an af[]liate of
RBS NV.
www.rbs.com/etnUS | TOLL FREE: 855-RBS-ETPS | Not FDIC Insured. May Lose Value.
Dated July 3, 2012
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