The Bank of Nova Scotia filed a free writing prospectus on October 28, 2026, for a term sheet describing Market Linked Securities auto-callable with contingent coupon and memory feature, linked to the common stock of Broadcom Inc., due May 10, 2029, under Registration No. 333-298611.

Key Highlights

  • Underlying stock: The securities are linked to the common stock of Broadcom Inc. (Bloomberg Ticker: AVGO), according to the filing.
  • Contingent coupon rate: At least 12.85% per annum, to be determined on the pricing date of November 5, 2026.
  • Face amount: $1,000 per security, with denominations in any integral multiple of $1,000.
  • Downside threshold and coupon threshold: Both set at 65.00% of the starting price, meaning investors retain principal at maturity only if the ending price is at or above that level.
  • Estimated value at pricing: The filing states that if the securities priced on October 28, 2026, the estimated value would be between $932.57 (93.257%) and $962.57 (96.257%) per $1,000 face amount.
  • Automatic call eligibility: Securities may be automatically called beginning at the sixth calculation day, approximately six months after the issue date of November 10, 2026, through April 2029.
  • CUSIP / ISIN: 06419TX86 / US06419TX867.

Structure and Key Terms of the Broadcom-Linked Auto-Callable Securities

According to the filing, The Bank of Nova Scotia is offering Principal at Risk Securities under its Senior Note Program, Series A, with a stated maturity date of May 10, 2029. The pricing date is expected to be November 5, 2026, and the issue date November 10, 2026, both subject to change. The securities carry a face amount of $1,000 per security and are distributed through Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC. The filing discloses that Wells Fargo Securities will receive a discount of up to 2.325%, that dealers including Wells Fargo Advisors, LLC may receive a selling concession of up to 1.75%, and that Wells Fargo Advisors may receive a distribution expense fee of 0.075%.

The contingent coupon, if paid, is calculated monthly as ($1,000 multiplied by the contingent coupon rate) divided by 12. The memory feature means that if a coupon is missed because the stock closing price fell below the coupon threshold price of 65.00% of the starting price, those unpaid coupons accumulate and are paid on the next calculation day when the closing price meets or exceeds the threshold. If the securities are automatically called, investors receive the face amount plus any final and previously unpaid contingent coupon payments. The call settlement date is three business days after the applicable calculation day.

The filing states that if the securities are not called and the ending price on the final calculation day (expected to be May 7, 2029) is less than the downside threshold price of 65.00% of the starting price, investors receive $1,000 multiplied by the performance factor, which equals the ending price divided by the starting price. The filing cautions that in this scenario investors "will lose more than 35.00%, and possibly all, of the face amount." The filing also notes that investors "will not participate in any appreciation of the Underlying Stock." Scotia Capital Inc., an affiliate of the Bank, is named as calculation agent.

What Was Disclosed

The Bank of Nova Scotia filed a term sheet for auto-callable, contingent coupon securities linked to Broadcom Inc. common stock, maturing May 10, 2029, with a contingent coupon rate of at least 12.85% per annum, a 65.00% downside threshold, and an estimated value of $932.57 to $962.57 per $1,000 face amount.