Barclays Stockbrokers, the online execution-only retail broker, has rolled out the UK 10 per cent Autocall structured product, which is issued by Royal Bank of Scotland.

The product is available exclusively to Barclays Stockbrokers clients until 27 July. It comes with a maximum five-year term, although investors can redeem it early from from year two, depending on the performance of the FTSE 100 Index of UK equities, Barclay Stockbrokers said in a note.

“This product is for investors with a moderate to positive outlook on the UK equity market over the next two to five years. The potential returns are attractive: 20 per cent after two years; 30 per cent after three years; 40 per cent after four years or 50 per cent after five years,” said Paul Inkster, head of product at Barclays Stockbrokers.

The product is designed to provide investors with a potential fixed return of 10 per cent per year for each year since the start date. If on any of the early redemption dates, the FTSE 100 closes at or above its closing level on the start date then the product will redeem early and pay the return.

If an investor believes that the FTSE 100 Index will stay around the same level or rise moderately over the coming years, the product “offers the potential to make significant returns”, Barclays Stockbrokers said.

If on the final redemption date, the FTSE 100 Index closes below the starting index level and the index has closed below 60 per cent of the starting index level on any business day during the term, investors’ capital will be at risk and they may lose some or all of their investment. However, provided the index closes at or above 60 per cent of the starting index level on each day, investors will receive back their full investment.