Energy Bond

Further:

This opportunity is only suitable for accredited investors (self certified sophisticated or High net worth individuals). All investments carry an element of risk, these risks include capital loss and illiquidity risk due to the absence of a viable secondary market for a particular product. Some investments can experience significant volatility and value fluctuations in a very short space of time, which may present an increased risk of losing your original capital. If you are unsure of these definitions please see the links below.
http://freplc.co.uk/investor-profile/

I can qualify as either a sophisticated or HNW investor, but the average UK investor cannot qualify as either. Although, the average person may still be able to get the product because the status is self-certified and you could lie.

They also say on their home page "Track record from previous bond below".

Without applying for an information pack, the track record information on that page seems to just be "first dividend successfully paid " and that the RICS valuation went up. No indication that subsequent dividends can or will be paid, or that capital will eventually be returned, or that the company responsible for paying out the capital or interest will still remain in business when it comes to cashing out your bond.

The footnotes explicitly state

This is not intended to act as an indication of future performance of any other investment opportunities. Investors may lose all invested capital if the project fails. This promotion is only suitable to accredited UK investors.

So, even if you are an accredited investor or willing to lie to say that you are, in the knowledge that you have no comeback from any compensation scheme, regulator or ombudsman, you should understand that Investors May Lose All Invested Capital.

The bond is not at all backed by the government. Where a project successfully launches and becomes government accredited, the government is paying income to an operating business, but that business may or may not be profitable after costs to build it. The bond in which you are investing is simply a loan to the people who are arranging financing of a business. The fact that there is a 'regulated security trustee' able to confirm that your bond certificate exists and knowing whose bond is whose, does not mean the company will be able to afford to pay back the bond.

So, it's not at all secure. And as stated by the company it is not suitable for, or available to, any investor who can't qualify as an exempt person under relevant Articles of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (“FPO”) by being high net worth or self-cert sophisticated.

The average person should not get involved with these niche, high risk, no consumer protection opportunities. Investing would usually involve misrepresentation on the part of the investor in terms of their suitability and qualification, and is followed by potential loss of life savings if the project does badly. The government does NOT back you investing in this product.

Gadfium wrote: »

Looks like a typical one-page website "honey-pot" to lure in the unwary. And given that Future Renewables PLC was only incorporated last year, I wouldn't be touching that with a bargepole.

b..b..but how can you say you wouldn't touch it with a bargepole when their first investment was really successful ??! It has already allegedly paid one dividend!

Why shouldn't I just fill out the form for an information pack while making the declaration that "I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me to seek advice from someone who specialises in advising on non-readily realisable securities." , and then go crying to the newspapers when it all goes titsup?

Elijah_Bailey wrote: »

Connie,
You should keep this kind of important financial information to yourself so you can buy all the bonds you can afford and reap all the benefits that you richly deserve.

Don't; she might believe you!