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 from 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.
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, you do not have the right to complain to the Ombudsman. While this does not impact upon the security of your investment, 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 notcovered by the FSCS and as an investor you have noright to complain to the Financial Ombudsman.
Unregulated investments such as our 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. As part of our investment process, potential investors are required to undertake a 3-step suitability process.
Enquire today to find out why investors trust us to deliver the returns they are looking for.