Key Risks

Are you regulated by the FCA?

We are not regulated by the Financial Conduct Authority (the FCA) as our introduction services are not required to be regulated. However, we aim to operate in accordance with the Financial Services and Markets Act 2000 (FSMA) and conform to the FCA’s standards and requirements.

Why do I have to self-certify?

You need to self-certify and confirm the type of investor you are so that we know that you fully understand risks in relation to investments and corporate lending and that you may not recover part or all of your investment. The loan notes are non-transferable and cannot be sold or redeemed before maturity and therefore are only suitable for investors who can wait to get their loan repaid. Interested investors are therefore required to self-certify as High-Net Worth or Self-Certified Sophisticated Investors through our Self-certification page on this website.

How can your investments offer a much higher rate of interest than the high street banks?

The investments we introduce our clients to are profitable businesses which reflect the interest rates they can offer. With low overheads and increased funding from investors these businesses benefit from major economies of scale allowing them fast market expansion. They are effectively giving a portion of their profit away in the form of investor interest but in return they get the capital they need to be profitable.

How do you like to do business?

We have an old fashioned approach and our preference is always face to face. We have clients all over the UK. You can come to us or we are happy to make a home visit to you wherever you are. Alternatively if this is not important to you then everything can be done over the phone.

Are there any hidden fees?

With all the investments there are absolutely no hidden fees.

What are your fees?

Alfred William Consultancy never charge their clients a penny. We introduce clients to products and invoice the product providers directly for a set commission that does not affect the interest our client receives.

What is a bond?

A bond is a debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate. Bonds are used by companies, states and sovereign governments to raise money and finance a variety of projects and activities.

What is a loan note?

Very similar to a bond a loan note is a professionally structured financial instrument; it is a legally binding contract that specifies the direction of the loan, when the loan is required to be repaid and the interest payable. Loan notes have the same security qualities found in a mortgage facility.

What is meant by the term Asset Backed?

An asset backed bond/loan note is a loan that is secured against the borrower's assets. If the borrower defaults on the loan the investor typically has first legal charge over the borrowers’ assets. The assets are used as collateral and can be sold to pay back the loan. It can be thought of as the same way a high street bank would lend a mortgage, the bank offer the capital needed to buy or develop a property and in return the customer offers the house or land as security for the loan.

Why do these businesses not borrow from the bank themselves?

Since the financial crisis of 2008 it has become increasingly difficult for businesses to get the funding they need, the banks are not lending at the rate they used to. Another factor is that an investment bank or a hedge capable of lending the capital required may well ask for interest in addition to an equity stake in the development or business itself.

With a bond or a loan note am I investing in the company?

No this is very different to a stock or a share. You are not investing in the company, you are lending the company money for a fixed period of time at a fixed rate. With a share you own a part of the company and your growth can fluctuate depending on company performance.

Disclaimer

The information presented in this page is provided purely for informational purposes for the UK taxpayer only and is not intended to be, used or considered as a financial advice or recommendation with respect to making decisions on investments. Anyone seeking a financial advice should contact their independent Financial Advisor. Information and opinions presented in this page have been obtained or derived from sources believed by Alfred William Consultancy Limited to be reliable, but Alfred William Consultancy Limited makes no representation, warranty or guarantee as to their accuracy or completeness. Alfred William Consultancy Limited accepts no liability for any loss arising from the use of the material presented in this page. Any comments or statements made herein do not necessarily reflect those of Alfred William Consultancy Limited. Alfred William Consultancy Limited may have issued, and may in the future issue, other communications that are inconsistent with, and reach different conclusions from, the information presented herein. Those communications reflect the assumptions, views, and analytical methods of the persons that prepared them.

Important Information

This website is provided solely for informative purposes and it does not constitute a legal, investment, tax or any other advice nor is it to be relied on when making investment decisions. Alfred William Consultancy Ltd is not able to give advice to prospective investors about the suitability of the investments. Prospective investors are recommended to seek independent specialist tax, financial or any other advice before engaging in any investing activity.

The investment opportunities we provide are available only to persons qualifying or legal entities defined by the local regulator and on the basis that you are not subject to jurisdictional restrictions preventing access to any of the information provided on this website.

All investment opportunities available via Alfred William Consultancy are NOT regulated by the Financial Conduct Authority (FCA) and you will NOT have access to the Financial Services Compensation Scheme (FSCS) and may not have access to Financial Ombudsman Service (FOS).

Investor Categorisation

Investments referred to on this website are considered high risk and therefore are suitable only for certain qualifying classes of investors within the UK as detailed within the the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended): persons described in article 19(5) (investment professionals), persons falling within article 49 of the FPO (‘High net worth companies, unincorporated associations etc’), persons who fall within article 48 of the FPO (‘certified high net worth individual’), persons who fall within article 50 of the FPO (‘certified sophisticated investor’), persons who fall within article 50A of the FPO (‘self-certified sophisticated investor’), and to any other person to whom the communication may otherwise lawfully be made in accordance with the FPO or otherwise.

Restricted Jurisdictions

This website is not intended for or directed at distribution or publication to any person (legal or natural) in any jurisdiction whereby doing so might result in contravention of any regulations or applicable laws. The information provided does not constitute a solicitation or an offer in any jurisdictions in which a solicitation or an offer as such is not authorised or to anyone to whom it isn’t lawful to make solicitation or offer as such. Potential investors should take adequate independent investment advice and educate themselves as to the applicable legal requirements, exchange control regulations and taxes in the countries they reside in, have citizenship in or domicile.

Risk Warning - Loss of capital

All kinds of investments referred to on this website carry out high risks of a loss of part or all the capital invested. The value of assets has the potential to decrease as well as increase and they can potentially be affected by a variety of variables, for example changes in interest rates. An investor might not get back the amount they originally invested. An investor might not receive any income distributions, an example being dividends. Illiquidity of these investments means that it might not be possible to sell the investments immediately or without significant loss in value, and longer term investment horizons are typically involved.

Information within this website has been taken from sources deemed by Alfred William Consultancy to be trustworthy but no warranty is provided that such information is entirely accurate or complete and it should not be relied upon as that. Alfred William Consultancy will not be deemed responsible for any damage or loss of any description which arises, directly or indirectly, and happens from the use of any section of the information given.

Future Performance

Past performance is not a guide or guarantee to future performance, and predictions are not a reliable indication of potential future performances. Any projections of future performance are based on all information known at the time of equity share investment or debt investment, and calculations and opinions of the management of underlying investment opportunities. The value of investments and the money brought in from them might drop as well as go up and might be affected by alterations in interest rates, and you might not get back the same value as your original investment. Investments that are not conducted in home currency may work against you. Any projections are subject to change and are not guarantees and should not be relied upon as such. We do not give investment advice or make any suggestions regarding the feasibility or viability of the investment opportunities, or how appropriate these products are for potential investors.

Risks Relating to Mini Bonds

Some of the investment opportunities involve mini bonds. Mini bonds aren’t deposit based or capital protected, and your investment is at risk of loss. Such bonds are unregulated and illiquid and therefore considered high risk. Interest rates on mini bonds such as these are not comparable to those of bank savings accounts and bonds of this nature can’t be redeemed until reaching maturity. Mini bonds are referred to as non-readily realisable securities, this means you might have to hold them until maturity. Your capital might also be at risk and you could not get back everything that you’ve invested. If you don’t understand the risks, we strongly recommend that you take no further action and leave this part of our website (Loan Notes) or seek independent financial advice.

Illiquidity, Diversification and Exit

All investments available via Alfred William Consultancy, are unregulated, complex, and non-readily realisable issued by smaller companies or start-ups, and you will be exposed to a high risk of losing part, or all capital invested. This means that investors should only invest a small proportion of their available investment capital in multiple asset classes as opposed to a large amount in one or a few, and should balance this with investments into safer, more liquid investments. If the business fails, the company is unlikely to be able to pay you back your investment.

Investments in debt securities are also non-transferrable, which means that should your financial circumstances change, and you needed to sell the bonds, you would be unable to do so. There is also no guarantee that you will receive your interest payments on time.

Investments in early stage equity shares of small and unquoted companies are considered to be high risk and involve risks such as illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio.

Tax

You are responsible for the administering of your tax affairs, which may include capital gains and/or income tax. Your tax treatment depends on your individual circumstances and may be subject to change by HMRC in future. We do not provide tax advice and you should seek independent tax advice before deciding to invest. It is your responsibility to ensure that your tax return is correct and is filed by the deadline and that any tax owing is paid on time.

These Key Risks are general and are not exhaustive. Each investment opportunity is subject to additional and specific risks described in its Investment Memorandum and should also be considered in light of those risks.