No one wants things to go wrong, but there can be numerous unforeseen
events or factors, which can effect the companies into which we invest.
Here are some examples of what can go wrong and what may happen in this
The following risks should be considered material for potential
investors, however, the risks listed below do not necessarily comprise
all those associated with an investment in the Bond and are not set out
in order of priority
How a problem may affect you
Your interest payments may stop or be reduced should a problem occurs
Your capital may not be repaid in full at the end of the term
Should one of the bond issuers go bust
There may be a period of time before your capital is partially or fully
If a bond issuer (the companies we raise funds for) cannot meet its
obligations, then Berkeley Rutherford Ltd and or its SPV subsidiaries
may affect any security or debenture it has over the assets of the
If Berkeley Rutherford Ltd go out of business
If Berkeley Rutherford becomes insolvent, then an administrator may be
appointed. Each SPV is a wholly owned subsidiary of Berkeley Rutherford
Ltd therefore the assets of the SPV less its obligations to repay
investors are owned by Berkeley Rutherford Ltd. Any cash or on-going
profits may be taken by the administrators to repay creditors. The
platform which the company trades is contracted to its host company
Sharein Ltd. Sharein Ltd have contingency to maintain the on-going
running of the platform on behalf of investors.
Any security trustee exists to protect the interest of investors. They
typically have a debenture (first charge) over the assets of both
Berkeley Rutherford Ltd and the SPV companies it owns. The Security
Trustee has rights ahead of anyone else to recover funds on behalf of
Other risk factors
Changes to legislation or restrictions imposed by regulatory bodies
could effect your interest payments or capital.
Insufficient due diligence on companies may result in us not spotting
a potential problem.
If one of the companies we invest in cannot meet its obligations. The
company may not be able to trade or attract enough customers.
If the company takes on additional borrowing or is too ambitious an
cannot meet its commitments.Changes to interest rates may affect companies trading.
Changes to interest rates may affect companies trading.
Large rises in interest rates may effect the attractiveness of your
bond, should cash deposit interest rates exceed the rates you receive
on your bond.
Our bonds are not ready realisable which means that should you need
cash quickly, it may not be possible to sell your bond quickly. You may
need to wait till the term end to receive your capital.
There may be many other factors not mentioned in this section which
could effect either the interest payments or capital repayment of your
When your capital is invested it is not covered by the Financial Services
Compensation Scheme (FSCS). Before
it is invested or once the proceeds of investments are returned, your money
will be held by the money recipient in a client account and subject to separate
protections applicable to credit institutions and banks.
Diversification by spreading your money across different types of investments should reduce your overall risk of financial loss. We highly recommend investors do this to maintain a balanced portfolio. Investors should also consider avoiding putting their money in the same investment as immediate family members. Investors should only invest a proportion of their available investment funds due to the high risks involved.
Where estimations and assumptions have been made to Berkeley
Rutherford or by Berkeley Rutherford or is associated SPV companies,
lots of factors could affect actual performance. Whist we believe that
any predictions are reasonable and based on reasonable date, there is
no guarantee that this document can be relied upon for future
Past performance is not necessarily a guide to future performance.