Financial Services Compensation Scheme (FSCS)
You may have heard of the FSCS (Financial Services Compensation Scheme) with regards to your bank account or savings, but the FSCS also covers investments, mortgages and insurance. With regards to investments, the FSCS provides compensation up to £50,000 (£85,000 as of April 2019), but you are only covered if the company you invested with is unable to pay the claims against it, or if you received negligent investment advice or were a victim of fraud. It is important to remember that investments inherently carry risk and the FSCS does not cover your investments falling in value or the loss to your capital from an investment itself failing. You can read more about the FSCS, specifically with regards to investments and what it covers here. Please be aware that investment offered through Amio Wealth are not covered by the FSCS.
The Financial Ombudsman
The Financial Ombudsman was established in 2000 in order to help settle disputes between consumers and UK-based businesses providing financial services, such as banks, building societies, insurance companies, investment firms, financial advisers and finance companies. However, if you choose to invest in an unregulated product, including those offered through Amio Wealth, you do not have the right to complain to the Ombudsman. While this does not impact upon your investment itself, it is an important fact to be aware of. You can read more about the Financial Ombudsman and the work they do here.
“Non-readily realisable securities”
Our investment offerings are unregulated and are “off-market” – they are what is known as “non-readily realisable securities”. This is the official term for such products as designated by the Financial Conduct Authority (FCA). This classification encompasses investments that are difficult to price, and for which there is no, or only a limited, secondary market. These are primarily corporate investments that are longer-term and involve risk to your capital. It is important to cover this because, by virtue of being unregulated, investments of this type are not covered by the FSCS and as an investor you have no right to complain to the Financial Ombudsman.
Unregulated investments such as our sustainable bond offerings may be a positive addition to your portfolio, enabling you to achieve higher rates of return and invest ethically in a number of exciting green businesses. However, they are not for everyone, these are investments and not savings products and as such carry risk to your capital and returns are not guaranteed. As part of our investment process, potential investors are required to undertake a 3-step appropriateness process in order to ensure the terms and risks are understood.
We believe transparency is intrinsic to any good relationship and you can find out more about the risks involved in our investments by clicking the respective link.
Please be aware that with investment your capital is at risk and returns are not guaranteed. These investments are not covered by the FSCS and security measures are not a guarantee of repayment. This investment is not readily realisable, and you should be prepared to hold it for the full investment term. The past performance is not a guarantee of future performance. You can read more about the general risks of investment on our website and should refer to the offering document for risks specific to this investment. With IFISA investments tax rules apply and are dependent on your individual circumstances. Please click here to view our full disclaimer