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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.
– 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.
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.
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.
LEGAL & REGULATORY NOTICE
The content of this promotion has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on this promotion for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested.
This communication is exempt from the general restriction in section 21 of the Financial Services and Markets Act 2000 (“FSMA”) on the basis that it is directed only at individuals who qualify as: (i) high net worth individuals within the meaning of Article 48 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended by the Financial Services and Markets Act 2000 (Financial Promotion) (Amendment and Transitional Provision) Order 2024); or (ii) self-certified sophisticated investors within the meaning of Article 50A of that Order.
Any person who is in any doubt about the investment to which this communication relates should consult an authorised person specialising in advising on investments of the kind in question. Any person who does not fall within one of these categories must not rely on or act on the contents of this communication.
Any investment of this kind is speculative and involves a high degree of risk, including the possible loss of all capital invested. The protections afforded to retail clients under FSMA do not apply. The Financial Services Compensation Scheme and the Financial Ombudsman Service offer no protection in relation to this investment.
Communicated by Boutique Spirits Co Limited. Company Registration Number 16381427. Registered office: 86-90 Paul Street, London EC2A 4NE, United Kingdom.
2025 © Boutique Spirits Co Limited. Company Registration Number 16381427
2025 © Boutique Spirits Co Limited. Company Registration Number 16381427
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