All persons who register as an ‘investor’ on this website should carefully read the following warnings before making any investment.
All investment products carry risks. The relevant Offer Document will cover risks specific to an individual offer. Please bear in mind the following general risks involved when investing through Downing’s crowdfunding platform:
Your personal decision to invest
A decision to invest in a company is a personal decision by you and no responsibility for the consequences of that decision is accepted by Downing LLP (“Downing”) or by any of its partners, directors, agents, employees or other members. To invest through Downing’s crowdfunding platform on www.downingcrowd.co.uk (the “Platform” you need to understand the following important risks:
You are not covered by the Financial Services Compensation Scheme Deposit protection scheme
The Financial Services Compensation Scheme (FSCS) deposit protection scheme does not apply to Downing Crowd Bonds. It does, however, apply to funds held in the client money account prior to investment in Downing Crowd Bonds or once the proceeds of that investment are returned from the borrower.
The client money account is held by Thompson Taraz Depositary Limited at the Royal Bank of Scotland plc. Downing LLP is authorised and regulated by the FCA and is responsible for arranging and promoting the Downing Crowd Bonds. Under the FSCS investment protection scheme there may be circumstances in which investors can claim up to £50,000 of compensation where Downing LLP is unable or unlikely to honour legally enforceable obligations against it (e.g. claims for fraud or misrepresentation).
However, investors will not be able to claim under the FSCS simply because a bond fails to repay capital or pay interest. This is unlikely to significantly affect the risk of investing in the Downing Crowd Bonds. For more details on the FSCS and its eligibility criteria: click here .
Capital at risk and returns not guaranteed
Bonds are investments not deposits and investors’ capital is at risk. Downing will seek to minimise risks but investors should be aware that the returns are not guaranteed and you may not get back the amount invested.
As an investor you should be aware that no established market exists for the trading of the bonds in private companies (which the companies that are listed on the platform are), and such bonds are not easily realisable. It must be appreciated that there could be difficulty in selling such investments at a reasonable price and, in some circumstances, it may be difficult to sell them at any price.
Diversify your portfolio
We highly recommend investors to maintain a balanced portfolio. Diversification by spreading your money across different types of investments should reduce your overall risk. Investors should only invest a proportion of their available investment funds via the platform due to the high risks involved.
Downing recommends that you take your own tax advice on any investments which you make via the Platform.
Downing does not provide advice or make personal recommendations. If you are in any doubt about the action you should take or the contents of a particular Offer Document, you should seek advice from an independent financial adviser authorised under the Financial Services and Markets Act 2000.
Past performance is not a reliable indicator of future performance. You should not rely on any past performance as a guarantee of future investment performance.