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Don’t invest unless you’re prepared to lose all the money you invest. This is a high risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more

COBS 4, Annex 1

 

Estimated reading time: 2 min

 

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

 

1. You could lose all the money you invest

• If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.

2. You are unlikely to be protected if something goes wrong

• Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here. [https://www.fscs.org.uk/check/investment-protection-checker/]

• Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here. [https://www.financial-ombudsman.org.uk/consumers]

3. You won’t get your money back quickly

• Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.

• The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.

• If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.

4. Don’t put all your eggs in one basket

• Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.

• A good rule of thumb is not to invest more than 10% of your money in high-risk investments. [https://www.fca.org.uk/investsmart/5-questions-ask-you-invest]

5. The value of your investment can be reduced

• The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.

• These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.

Risk Warnings

BCI Finance Ltd (“The Firm”) operates in a high-risk investments market and deals in financial instruments that are not retail products. Do not invest unless you are prepared to lose all the money you invest. This is a high-risk investment, and you are unlikely to be protected if something goes wrong.

This Risk Warning has been prepared in accordance with FCA rules on the basis that, before entering into any investment transactions or any related transactions, the investor will ensure that they fully understand the potential risks and returns of the transaction and/or any investment and determine whether the transaction is appropriate for them given their objectives, experience, experience and financial resources.

An investment in the funds managed by the Firm is speculative and involves a high degree of risk. Opportunities for withdrawal/redemption and transferability of interests/shares in the funds are restricted, so investors may not have access to capital when it is needed and an investment in the funds should be considered illiquid. There is no secondary market for the interests/shares of the funds. Leverage may be employed in the portfolios, which can make investment performance volatile. An investor should not make an investment in the funds unless it is prepared to lose all or a substantial portion of its investment. The fees and expenses charged in connection with an investment in the funds may be higher than the fees and expenses of other investment alternatives and may offset profits.

There is no guarantee that the investment objective will be achieved. Moreover, the past performance (if any) of the investment team should not be construed as an indicator of future performance. Any projections, market outlooks or estimates are forward-looking statements and are based upon certain assumptions. Other events which were not taken into account may occur and may significantly affect the returns or performance of the funds. any projections, outlooks or assumptions should not be construed to be indicative of the actual events that will occur.

PLEASE NOTE: THE FOREGOING RISK FACTORS DO NOT PURPORT TO BE A COMPLETE EXPLANATION OF ALL OF THE RISKS INVOLVED IN THE PORTFOLIO’S INVESTMENTS. THE FUNDS MAY BE SUBJECT TO CONFLICTS OF INTEREST.