bigfoot12
Member of DD Central
Posts: 1,817
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Post by bigfoot12 on May 17, 2016 7:08:56 GMT
From the Seedrs FAQ page...
'Are Seedrs investments safe?'
'No........in most cases money will not be returned to investors.'
That's a pretty stark warning, but clearly truthful. Syndicate Room is similar "Most startups fail, and if you invest in a business through SyndicateRoom, it is significantly more likely that you will lose all of your invested capital than that you will see a return of capital or a profit. You should not invest more money through the platform than you can afford to lose without altering your standard of living." I was trying to remember how I got through the Seedrs vetting process as I am neither high-worth nor sophisticated. You probably did an online survey to demonstrate your knowledge and then promised to put less than 10% of your wealth into risky illiquid assets. Assuming that you have made at least two investments you are then free to call yourself sophisticated under the FCA rules!
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Post by yorkshireman on May 17, 2016 10:10:18 GMT
Yes, some people need to be protected from themselves when it comes to anything relating to money.
Therefore the onus should be on the platform, investment vehicle or product provider to make the risks absolutely clear with no jargon or financial gobbledegook and be in plain English rather than Swahili, in turn there should be an obligation on the FCA to ensure this happens, nothing to do with being a HNWI or sophisticated investor.
In fact a HNWI could possibly be someone with more brass than wit (more money than sense)
Common sense and Caveat Emptor should apply.
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