Filed Pursuant To Rule 433

 

Registration Statement No. 333-200089

 

MARKET-LINKED STEP UP NOTES

 

 

 

 

Market-Linked Step Up Notes Linked to the S&P 500® Index

 

 

This graph reflects the hypothetical return on the notes, based on the mid-point of the range(s) set forth in the table to the left. This graph has been prepared for purposes of illustration only.

Issuer

 

The Bank of Nova Scotia (BNS)

Principal Amount

 

$10.00 per unit

Term

 

Approximately four years

Market Measure

 

The S&P 500® Index (Bloomberg symbol: “SPX”)

Payout Profile at Maturity

 

·         If the Market Measure is flat or increases up to the Step Up Value, a return equal to the Step Up Payment

·         If the Market Measure increases above the Step Up Value, a return equal to the percentage increase in the Market Measure

·         1-to-1 downside exposure to decreases in the Market Measure  beyond a 10% decline, with up to 90% of your principal at risk

Step Up Value

 

[120% to 126%] of the Starting Value, to be determined on the pricing date

Step Up Payment

 

[$2.00 to $2.60] per unit, a [20% to 26%] return over the principal amount, to be determined on the pricing date

 

Threshold Value

 

90% of the Starting Value

 

Investment Considerations

 

This investment is designed for investors who anticipate that the Market Measure will increase over the term of the notes and are willing to take downside risk below a threshold and forgo interim interest payments.

 

Preliminary Offering Documents

 

https://www.sec.gov/Archives/edgar/data/9631/000110465916100849/a16-3523_12fwp.htm

 

Exchange Listing

 

No

 

 

You should read the relevant Preliminary Offering Documents before you invest.

Click on the Preliminary Offering Documents hyperlink above or call your Financial Advisor for a hard copy.

 

Risk Factors

Please see the Preliminary Offering Documents for a description of certain risks related to this investment, including, but not limited to, the following:

·                   Depending on the performance of the Market Measure as measured shortly before the maturity date, your investment may result in a loss; there is no guaranteed return of principal.

·                   Payments on the notes are subject to the credit risk of BNS, and actual or perceived changes in the creditworthiness of BNS are expected to affect the value of the notes. If BNS becomes insolvent or is unable to pay its obligations, you may lose your entire investment.

·                   The initial estimated value of the notes on the pricing date will be less than their public offering price.

·                   If you attempt to sell the notes prior to maturity, their market value may be lower than both the public offering price and the initial estimated value of the notes on the pricing date.

·                   You will have no rights of a holder of the securities represented by the Market Measure, and you will not be entitled to receive securities or dividends or other distributions by the issuers of those securities.

 

Final terms will be set on the pricing date within the given range for the specified Market-Linked Investment. Please see the Preliminary Offering Documents for complete product disclosure, including related risks and tax disclosure.