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Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment
to be very complex and high risk.
What are the key risks?
You could lose all the money you invest
When you invest you will be issued bonds by a subsidiary property company
(a 'Special Purpose Vehicle') that is dedicated to the opportunity you invest in.
This property company makes a loan to the borrower. It is not an ongoing trading vehicle
and does not have other avenues of generating income or returns.
Advertised rates of return aren’t guaranteed. This is not a savings account.
If the issuer does not pay you back as agreed, you could earn less money than expected or
nothing at all. A higher rate of return means a higher risk of losing your money.
If it looks too good to be true, it probably is.
These investments are sometimes held in an Innovative Finance ISA (IFISA). While any
potential gains from your investment will be tax free you can still lose all your money.
An IFISA does not reduce the risk of the investment or protect you from losses.
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
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
You are unlikely to get your money back quickly
CapitalRise investments are illiquid and you need to be prepared
to hold this investment for the full term.
We do operate a Bulletin Board where you can post your investment for sale, but there
is no guarantee of a buyer. CapitalRise charge a fee for this service. Before you invest,
you should consider if you will need access to those funds should your circumstances change.
This is a complex investment
This investment includes loans made to property developers. Developers could misuse the
invested funds without CapitalRise’s knowledge, thereby increasing the risk of default.
Developers may also become unable to complete the scheduled work on time, or at all,
for financial or other reasons.
This makes it difficult to predict how risky the investment is, but it will most likely be high.
- You may wish to get financial advice before deciding to invest.
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.
If you are interested in hearing more about how to protect yourself, visit the FCA’s website
For further information about minibonds, visit the FCA’s website