Don’t invest unless you’re prepared to lose all your money.
These are high-risk investments and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more
Consumer duty refers to the responsibility of consumers to make informed and ethical choices when it comes to purchasing goods and services. It encompasses the idea that consumers should consider the impact of their consumption habits on society, the environment, and other stakeholders.
Why should we care, it’s just a little education, whilst pondering about why 15th January is called Blue Monday, I thought why the rainbow is a symbol of hope… and the educational piece came about.
Sturgeon Ventures supports Crosslight Advice and Seonaid Mackenzie is a trustee, this charity is having an impact on our society during these times of hardship www.crosslightadvice.org.
Sturgeon Ventures recently read that the FCA has launched a permanent Digital Sandbox for those involved in a variety of related themes, including – banking, payments, pensions and wholesale sell and buy-sides.
Sturgeon Ventures is pleased to share the latest press release from The Women in Finance Charter Annual Review 2022 and proud to say it has been a signatory to the Charter since its inception in July 2016.
Sturgeon Ventures likes to share great articles on important topics for our industry. See below for a recent article from Osborne Clarke on the issues around sustainable ESG performance or specific ESG-linked activities.
Sturgeon Ventures are pleased to announce that they have won the recent Lawyers Worldwide Awards 2023 for Start-up Compliance Consultancy Firm of the Year – UK.
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Global venture capital trends with Seonaid Mackenzie
On this episode of the Guernsey Finance Podcast, Seonaid Mackenzie, Founder of Sturgeon Ventures LLP, discusses the rise of venture capital (VC) in recent years and identifies – and subsequently analyses – the trends in the VC market.
Risk summary for non-readily realisable securities which are shares
Last updated: 23 January 2024
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 or via the following URL link: 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 or via the following URL link: 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 anyone to do well.
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 or via the following URL link: https://www.fca.org.uk/investsmart.