What can go wrong?
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
- There may be a period of time before your capital is partially or fully recovered
Should one of the bond issuers go bust
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 issuer.
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 investors.
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 bond.
- When your capital is invested it is not covered by the Financial Services Compensation Scheme (FSCS).
- 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 performance.
- Past performance is not necessarily a guide to future performance.