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2 Introduction = This Strategy Features document describes a sterling denominated FTSE 100 Index and S&P 500 Index (each an Index and gether the Indices ) linked investment strategy ( Strategy ) and the associated risks. All capital invested is potentially at risk. You may lose some or all of your investment. As such, this Strategy may only be suitable for invesrs looking for higher potential returns when compared with a similar capital-protected strategy, but who are willing accept that they may not get back all or any of the initial investment. Terms in capitals are defined under Key Dates and Definitions. Please review this document carefully including the sections dealing with the associated risks. The minimum investment is 50,000; investments of larger amounts may be made in multiples of 10,000 thereafter. Additions are not permitted during the term of the Strategy. Coutts has categorised this Strategy as Wealth Generation due the risk your initial investment. Further information on the wealth categories and the risks associated with them are detailed in the Wealth Purpose Category Table at the end of the document. Dual Index Defensive Aucall Strategy VI In Detail The Strategy is a five year investment which provides the potential for an early payout (an Early Repayment ), on the Early Repayment Settlement Dates after one, two, three or four years. On the Early Repayment Dates, we will compare the Closing Levels of both the Indices their respective Starting Index Levels. If, on the first Early Repayment Date (after one year), the Closing Levels of both Indices are at or above their Starting Index Level, then the Strategy will terminate early, and you will receive a fixed return equal at least 9.50% (gross) plus your initial investment. Please see 'Setting the return' for more detail of how the potential fixed return is set. If on the first Early Repayment Date the Closing Level of one or both of the Indices is less than its Starting Index Level, then no payment will be made and the Strategy will continue on the next year. If the Strategy is not terminated early, this process continues each year until the Final Determination Date. If the Closing Levels of both Indices are at or above their respective Starting Index Levels on the second, third or fourth Early Repayment Date, the potential fixed payment will be equal the number of years since the Fixing Date multiplied by at least 9.50% (gross) (i.e % after two years, 28.50% after three years or 38.00% after four years) plus your initial investment. If the Strategy has not been terminated early by the Final Determination Date there are 2 potential outcomes: 1) If the Closing Levels of both Indices on the Final Determination Date are at or above 60% of their respective Starting Index Level, then you will receive a fixed return equal at least 47.50% (gross) plus your initial investment on or around the Maturity Date. 2) If the Closing Level of one or both of the Indices on the Final Determination Date is less than 60% of their respective Starting Index Level, then you will not receive any return and your initial investment will be reduced by an amount equal the percentage fall in the worst performing Index from its Starting Index Level its Closing Level on the Final Determination Date (on a onefor-one basis). For example, if, at maturity, the worst performing Index has fallen by 45%, you would receive back 55% of your initial investment. See the payout diagram on page 6 for an illustration of how the Strategy operates. How the Strategy is delivered Coutts & Co ( Coutts ) will purchase certificates on your behalf that replicate the payoff of the Strategy. A certificate is a contract between an issuer and an invesr where the issuer has an obligation return an amount (which could be zero) at maturity or expiration of the certificate which is linked the performance of an underlying asset. The Issuer of the certificates (the Issuer ) will either be The Royal Bank of Scotland plc or UBS AG, be chosen on the Trade Date according a number of facrs. Coutts is a member of The Royal Bank of Scotland Group. Once invested, the certificates will be held by either an RBS Group nominee company or by a third party cusdian appointed by us. minees and cusdians are used hold investments on behalf of the actual owner (i.e. the client) in order reduce the amount of administration for the client and increase the speed and efficiency of transactions. Please note the Strategy is not sponsored or endorsed by the owners or publishers of the Indices. You will not be invested directly in the companies that make up the Indices. This means that you will not be eligible for benefits such as dividends paid by the companies that make up the Indices. Could You Lose Money?, as capital is not protected, you could potentially lose some or all of your investment. Additionally, your initial investment will not be repaid, nor will any return be paid in the unlikely event that the Issuer were default or go bankrupt. Please make sure you read the section Risk Your Investment. 2

3 Setting the return The potential return of 9.50% is a guide for the purposes of this document and the exact level will be set on the Trade Date according market conditions prevailing on that date. As an indication, as at 16 February 2012, the return that could have been achieved was 10.70% for each year that the Strategy is in issue as calculated by The Royal Bank of Scotland plc, and 10.50% as calculated by UBS AG. However, there is no guarantee that this will be achieved on the Trade Date. If on the Trade Date the return would be set at less than 9.50%, the Strategy will not proceed. We will inform you of the outcome shortly after the Trade Date. Risk Your Investment Market Risk The repayment of initial investment is linked the performance of the Indices as described elsewhere in this document. There can be no assurance as how the Indices will perform. If one of the Indices closes below 60% of its Starting Index Level on the Final Determination Date there will be a loss of some or all of your initial investment. In the theoretical scenario that one of the Indices has fallen 100% (i.e. zero), all of your initial investment would be lost. Economic, political and social facrs can cause adverse fluctuations that may affect the performance of the Strategy. Issuer Risk The Issuer of the certificates underlying this Strategy will be either The Royal Bank of Scotland plc or UBS AG. In the event that the Issuer were default or go bankrupt, you may lose some or all of your initial investment amount and return. The financial position of the Issuer may change over the life of the Strategy. Credit ratings can be a useful way compare the credit risk associated with different product providers and related investments. Credit ratings are assigned by independent companies known as ratings agencies and reviewed regularly. The Royal Bank of Scotland plc s longterm credit rating as at 16 February 2012 from Moody s was A2, rating under review-down (its equivalent rating by Standard & Poor s was A, stable outlook and by Fitch was A, stable outlook). UBS AG s long term credit rating as at 16 February 2012 from Moody s was Aa3, rating under review - down (its equivalent rating by Standard & Poor s was A, negative outlook and by Fitch was A, stable outlook). You should note that Moody s rate companies from Aaa (Most Secure/Best) C (Most Risky/ Worst), while Standard & Poor s and Fitch rate companies from AAA (Most Secure/Best) D (Most Risky/ Worst). These credit ratings are reviewed on a regular basis and are subject change by these agencies. A rating outlook indicates the likely rating trend over a one two-year period. It reflects financial or other trends that have not yet reached the level that would trigger rating action, but which may do so if such trends continue. A stable outlook means that the rating is not likely change in the short term. A negative outlook means that the rating is on watch for a possible downgrade. Rating under review, down means that the rating is being reviewed by Moody s for a possible downgrade. Based on these ratings, it is expected that the Issuer will meet its payment obligations you at the end of the Strategy term, but this is not guaranteed. Please note that in the event of the Issuer defaulting or going bankrupt, compensation will not be available under the UK Financial Services Compensation Scheme. Other Risks Any return you receive may fail beat inflation, which will reduce the purchasing power of your investment by the time the Strategy matures. There is a risk that your return may not be as good as if you had invested in other types of assets. If you withdraw your money early you may get back less than you initially invested. A feature of this Strategy is the possibility of it maturing early. If the investment ends early you will receive your initial investment back plus a fixed return. This fixed return is unlikely fully reflect the growth in the underlying index. Please note that if you have other capital gains in the tax year in which the Strategy matures (either early or at the Maturity Date), there may be a capital gains tax liability depending on the tal amount of gains. As the Aucall Strategy can pay out on any Strategy anniversary, this could be in any of the next 5 tax years. Our House View We forecast that the UK and US equity markets will deliver positive returns over the next five years. While we are cautious on the near-term outlook for these (and other) equity markets, for longer-term invesrs willing smach high levels of volatility and potential further falls in the near term, valuations suggest equities are likely achieve positive returns over multi-year time horizons. In the short term, investment decisions are primarily influenced by momentum, sentiment and macro-economic and political issues. With barely a day going by without euro-zone debt woes, political dysfunction and global recession fears grabbing the headlines, it is easy see why markets are extremely volatile. However, when stretching out the time horizon, valuation is a key facr driving returns. Currently the Price--Earnings ratio of the FTSE 100 and the S&P 500 is back at levels last seen in the depths of the 2008/9 global financial crisis, while their dividend yields once again stands on a par with that from respectively tenyear UK gilts and ten-year US Treasury bonds. Valuations 3

4 at current prices therefore suggest that UK and US equities are attractive over a longer-term investment period, if invesrs are prepared accept continued high levels of volatility and potential further falls in the near term. Past performance should not be used as an indicar of future performance. The Issuer You will be subject, and bound by, the Issuer s terms for the certificates that underlie the Strategy, copies of which are available from Coutts. Issuer documentation typically contains rights for the Issuer vary the terms of the certificates upon the occurrence of specified events which may operate your disadvantage. Examples of such events are disruption or closure of the relevant markets, cessation of any applicable index, settlement disruption and increased costs the Issuer of providing the certificates. In such events, the Issuer may have the right, for example, vary the basis of valuation of, postpone settlement of, or cancel the certificates. There may be a risk your investment in these circumstances. Tax Treatment It is expected, based on current UK tax legislation, that payments made on any investment under the Strategy will be subject Capital Gains Tax for UK resident and ordinarily resident individuals. You should note that UK tax law and regulation may change in the future which could have retrospective effect. Tax treatment depends on your individual circumstances and may be subject change in the future. thing in this Strategy Features or any other information provided you by Coutts or The Royal Bank of Scotland Group in connection with this investment constitutes tax advice you. You should not rely upon any tax information provided here for your personal tax planning purposes as it may not apply your specific circumstances. Coutts recommends that you seek your own independent tax advice. Fees and Costs All fees are included in the cost of the Strategy you. Coutts will receive 1.00% of the initial investment amount. This is equivalent % of the consideration as detailed on the contract note. Thereafter, an annual fee of 0.30% of the initial investment amount is payable Coutts by the Issuer for each year of the life of the Strategy. This is equivalent % of the consideration as detailed on the contract note. The Issuer will also take fees which are built in the construction of the Strategy. The amount of these fees is not readily ascertainable, however further details may be available on request. The Strategy may incur higher costs and offer reduced returns compared a direct investment in the Indices. Liquidity You will not have the right cancel your application once it is made. The Strategy has a fixed term (subject possible early repayment as described in this document). Accordingly it will not be suitable if invesrs need early access their investment. If you wish sell the Strategy early, the Issuer may, under normal market conditions, buy back your interest in the Strategy. However, you may receive less than your initial investment amount dependent on market conditions and the tax treatment may be affected. partial sales may be made. If death occurs during the term of the Strategy, and early withdrawal is required, the amount repaid will depend on the market value of the underlying certificate and may be less than the initial amount invested and the tax treatment may be affected. Alternatively, Coutts may at its discretion agree that the Strategy can continue until maturity. The certificates that comprise the Strategy may be listed on a recognised exchange such as the London Sck Exchange. However, neither the Strategy nor the constituent certificates are traded on an exchange. As a consequence, the certificates will not be as easily tradable as a security traded on an exchange. assurance can be given that there will be a market for the certificates and pricing information for such certificates may be more difficult obtain. Consequently, the liquidity and market prices of such certificates may be adversely affected. Payments under the Strategy You will receive amounts due you within three business days of the Maturity Date or three business days of the Early Repayment Settlement Dates as applicable. This happens unless, due circumstances or events beyond Coutts or the Issuer s control, the calculation or payment of the initial investment or return as at the Early Repayment Date or Final Determination Date is suspended or delayed. If so Coutts will use its reasonable endeavours obtain payment for invesrs of such amounts as soon as reasonably practicable after the Maturity Date or the Early Repayment Settlement Dates, as the case may be. This is not in addition, and does not affect you receiving back, that part of your initial investment and any return you are entitled if you hold the Strategy until maturity. 4

5 Key Dates and Definitions Marketing period ends 22 March 2012 Trade Date 23 March 2012 Fixing Date 23 March 2012 Settlement Date 12 April March 2013 Early Repayment Dates 24 March March March 2016 Early Repayment Settlement Dates 5 business days after the relevant Early Repayment Date Final Determination Date 23 March 2017 Maturity Date 12 April 2017 Your money will only be taken out of your account on the Settlement Date. The Starting Index Level in respect of each Index is the Closing Level of each Index on the Fixing Date. The Closing Level of each Index is reported daily and can be found in the financial press. The FTSE 100 Index is an index of the p 100 UK companies traded on the London Sck Exchange measured by market capitalisation. Market capitalisation is calculated by multiplying the number of shares of a particular company by the current share price. The S&P 500 Index is a market-weighted index of 500 US scks. The index selects its companies based upon their market size, liquidity, and secr in order provide a measure of the performance of the broad domestic US economy through changes in the value of the 500 US scks that it tracks. 5

6 Payout diagram for the Dual Index Defensive Aucall Strategy VI The Payout Diagram below illustrates how the Strategy works, and is assuming the potential fixed return is 9.50% (for each year of the life of the Strategy). See 'Setting the Return' for more detail on how the potential fixed return is set. The Starting Index Levels are set on the Fixing Date. Year 1 (on first Early Repayment Date): above their respective Starting Index Levels? Year 2 (on second Early Repayment Date): above their respective Starting Index Levels? Year 3 (on third Early Repayment Date): above their respective Starting Index Levels? Year 4 (on fourth Early Repayment Date): above their respective Starting Index Levels? Year 5 (on Final Determination Date) : above 60% of their Starting Index Levels? You will receive a fixed payment of 9.50% (gross) of your investment amount plus your investment amount back early. The Strategy will terminate early and you will receive no further payments. You will receive a fixed payment of 19.00% (gross) of your investment amount plus your investment amount back early. The Strategy will terminate early and you will receive no further payments. You will receive a fixed payment of 28.50% (gross) of your investment amount plus your investment amount back early. The Strategy will terminate early and you will receive no further payments. You will receive a fixed payment of 38.00% (gross) of your investment amount plus your investment amount back early. The Strategy will terminate early and you will receive no further payments. You will receive a fixed payment of 47.50% (gross) of your investment amount plus your investment amount back. You will not receive any fixed payment and your initial investment amount will be reduced on a one for one basis in line with the percentage fall in the worst performing Index from its the Starting Index Level its Closing Level on the Final Determination Date. You could lose all or some of your investment. 6

7 Performance of the FTSE 100 Index over the last 15 years Index Level /02/97 08/08/97 08/02/98 08/08/98 08/02/99 08/08/99 08/02/00 08/08/00 08/02/01 08/08/01 08/02/02 08/08/02 08/02/03 08/08/03 08/02/04 08/08/04 08/02/05 08/08/05 08/02/06 08/08/06 08/02/07 08/08/07 08/02/08 08/08/08 08/02/09 08/08/09 08/02/10 08/08/10 08/02/11 08/08/11 08/02/12 Source: Bloomberg, 8 February 2012 Past performance should not be used as an indicar of future performance. Performance of the S&P 500 Index over the last 15 years Index Level /02/97 08/08/97 08/02/98 08/08/98 08/02/99 08/08/99 08/02/00 08/08/00 08/02/01 08/08/01 08/02/02 08/08/02 08/02/03 08/08/03 08/02/04 08/08/04 08/02/05 08/08/05 08/02/06 08/08/06 08/02/07 08/08/07 08/02/08 08/08/08 08/02/09 08/08/09 08/02/10 08/08/10 08/02/11 08/08/11 08/02/12 Source: Bloomberg, 8 February 2012 Past performance should not be used as an indicar of future performance. The graphs above show the hisric performances of the FTSE 100 Index and the S&P 500 Index over the past 15 years (8 February February 2012). During this time, we calculated that there have been approximately 2526 different rolling five year periods. Of these, there were 10 five year periods when one of the Indices fell more than 40% versus its Starting Index Level. 1 year performances of the FTSE 100 and the S&P 500 over the last 5 years 8 February February February February February February February February February February 2012 FTSE100 increase/decrease -8.86% % 18.22% 19.62% -3.54% S&P500 increase/decrease -8.08% % 21.48% 25.34% 1.92% Source: Bloomberg, 8 February 2012 Past performance should not be used as an indicar of future performance. 7

8 WEALTH PURPOSE CATEGORY TABLE Wealth Preservation (capital protected) Wealth Preservation (capital at risk) Wealth Enhancement Wealth Generation Life Enrichment Targeting moderate returns, while seeking preserve the value of your investment. Capital protection subject holding maturity and any counterparty/issuer risk. Targeting moderate returns, while seeking preserve the value of your investment. Securing a minimum level of income. Enhancing the real value of your wealth via a diversified investment strategy. Investing for a balance of income and capital gains. Investing in specific markets with partial capital protection. Generating attractive real returns through higher risk assets and activities. Capital gains dominated returns involving varying degrees of speculation. Acquiring lifestyle assets. Philanthropy. Variable returns depending on the market performance is linked. Fixed term time horizon (typically up 3 years). Illiquid during product term. 100% capital protected structured investments. 100% capital protected structured deposits. Guaranteed Insurance Bonds. Low risk of capital loss. Low volatility. Investments often income orientated with reasonable liquidity. Short medium term time horizon (typically up 3 years). Investment portfolios with a fixed income bias. Liquidity funds. Moderate risk of capital loss. Moderate volatility. Medium long term time horizon (typically 3-8 years). Investments with moderate liquidity. Diversified equity and bond portfolios. Funds of hedge funds. Partially capital protected investments. Higher risk of capital loss in short term. Higher volatility. Long-term investments (typically 8 years +). Use of leverage increase returns. Concentrated exposure financial assets and specific risks. Higher equity content portfolios. Portfolios may be concentrated in a narrow set of investments or a specific theme. Private equity Investments. Leveraged investments. Important: the of the wealth categories above are generic and provide an indicative guide. Individual products in each wealth category will not always display all of the of that wealth category. It is essential that you understand specific risks of individual products as part of any recommendation we make you. Updated: July Investment returns: possibly non financial. Capital risk: variable. Second homes, yachts, car, art and wine collections etc. Interest free loans. Charitable foundations. Venture philanthropy. Social venture capital. 8

9 Important Information This Financial Promotion is issued by Coutts & Co which is authorised and regulated by the Financial Services Authority for investment business in the UK, FSA registration number Coutts & Co registered in England Company Registered Office and main business address, 440 Strand London WC2R 0QS. You should refer the Terms and Conditions as set out in your Coutts Structured Investments Plan Agreement. You should consider carefully whether an investment in this Strategy meet your specific investment objectives, financial situation or particular needs. If in any doubt about an investment in this Strategy, you should seek independent tax, accounting or legal advice. UK tax law and regulation may change in the future which could have retrospective effect. This document is an advertisement and is not a prospectus for the purposes of EU Directive 2003/71/EC (the Directive ) and/or Part VI of the Financial Services and Markets Act A prospectus has been prepared and made available the public in accordance with the Directive. Invesrs should not subscribe for any securities referred in this document except on the basis of information contained in the prospectus. Invesrs may obtain copies of the prospectus through their private banker. thing in this Strategy Features document or any other information provided you by us in connection with this investment constitutes tax advice you. You should not rely upon any tax information provided here for your personal tax planning purposes as it may not apply your specific circumstances. Coutts strongly recommend that you seek your own independent tax advice. This Strategy is not sponsored or endorsed by the owner or publisher of any index. References particular indices in this document are included only indicate the basis upon which performance is calculated, and not indicate any association between Coutts & Co and the third party index provider or endorsement of this product by the index provider. Any expressions of opinion constitute our judgment at the date shown and are subject change. Any information is believed be correct but cannot be guaranteed. Coutts may subsequently launch strategies that reflect changes in its view and market conditions. The analysis contained in this document has been procured, and may have been acted upon, by Coutts & Co and connected companies for their own purposes, and the results are being made available you on this understanding. To the extent permitted by law and regulation, neither Coutts & Co nor any connected company accepts responsibility for any direct or indirect or consequential loss suffered by you or any other person as a result of your acting, or deciding not act, in reliance upon such opinions information or analysis. Coutts & Co, its direcrs and/or employees and/or those of its affiliates may hold positions in any certificates mentioned, and may receive brokerage fees or act as principal or agent in dealings with respect these certificates and currencies. This product is not available in the US or US Persons. References the certificates are included only describe the components upon which the Strategy is based. The Strategy is not in any way sponsored, endorsed or promoted by The Royal Bank of Scotland plc. The Strategy is not in any way sponsored, endorsed, sold or promoted by UBS AG or its affiliates. Neither UBS AG nor its affiliates have created this material nor do they take any responsibility for its content. Neither UBS AG nor its affiliates make any representations or warranties, express or implied, regarding the advisability of investing in the Strategy or as the results of the Strategy. The Royal Bank of Scotland plc. Registered in Scotland Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB. The Royal Bank of Scotland plc is authorised and regulated by the Financial Services Authority. DAISY device, RBS, and THE ROYAL BANK OF SCOTLAND are trade marks of The Royal Bank of Scotland Group plc. (16/02/12) 9