BNS Bank Nova Scotia Halifax

MARKET-LINKED STEP UP NOTES

Market-Linked Step Up Notes Linked to the EURO STOXX 50 ®  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 two years

Market Measure

The EURO STOXX 50 ®  Index (Bloomberg symbol: “SX5E”)

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, with up to 100% of your principal at risk

Step Up Value

[123% to 129%] of the Starting Value, to be determined on the pricing date

Step Up Payment

[$2.30 to $2.90] per unit, a [23% to 29%] return over the principal amount, to be determined on the pricing date

Threshold Value

100% 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 full downside risk and forgo interim interest payments.

Preliminary Offering Documents

https://www.sec.gov/Archives/edgar/data/9631/000110465916163989/a16-22523_15fwp.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.

·       Your return on the notes may be affected by factors affecting the international securities markets, specifically changes within the Eurozone. The Eurozone is and has been undergoing severe financial stress, and the political, legal and regulatory ramifications are impossible to predict. Changes within the Eurozone could adversely affect the performance of the Index and, consequently, the value of the notes. In addition, you will not obtain the benefit of any increase in the value of the euro against the U.S. dollar, which you would have received if you had owned the securities in the Index during the term of your notes, although the level of the Index may be adversely affected by general exchange rate movements in the market.