Key Risks
FCA Mandatory Risk Warning & Risk Summary
Risk Warning
Don’t invest unless you’re prepared to lose all your money invested. This is a high-risk investment. You could lose all the money you invest and are unlikely to be protected if something goes wrong. Take 2 minutes to learn more.
Risk Summary
Estimated reading time: 2 minutes
Due to the potential for losses, this investment is considered to be high risk.
What are the key risks?
You could lose all the money you invest
Investments made by Force Over Mass’s EIS Fund will be in shares in early-stage businesses. Investors in these shares often lose 100% of the money they invested, as many early-stage businesses fail.
You are unlikely to be protected if something goes wrong
Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.
Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it.Learn more about FOS protection here
You won’t get your money back quickly
Even if the businesses the Fund invests your money in are successful, it may take several years to get your money back.
The most likely way to get your money back is if the businesses invested in by the Fund are bought by another business or list their shares on an exchange such as the London Stock Exchange. These events are not common.
Early-stage businesses very rarely pay you back through dividends. You should not expect to get your money back this way.
Don’t put all your eggs in one basket
Putting all your money into a single business or type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well.
A good rule of thumb is not to invest more than 10% of your money in high-risk investments. Find out more here.
The value of your investment can be reduced
The percentage of each investee company that the Fund owns will decrease if the business issues more shares. This could mean that the value of your investment in each investee company reduces, depending on how much the business grows. Most early-stage businesses issue multiple rounds of shares.
These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.
Tax advantages not guaranteed
Whilst it is the Fund’s intention to invest in companies qualifying under EIS legislation, Force Over Mass Capital LLP cannot guarantee that all investments will qualify for EIS relief (or IHT relief) or, indeed, if they do initially, that they will continue to do so throughout the life of the investment.
The tax advantages of investing through the Fund are therefore not guaranteed. The tax treatment depends on the individual circumstances of each investor and may be subject to change in the future.
If you are interested in learning more about how to protect yourself, visit the FCA’s website.
Important Information
Investor Categorisation
This section of the website may contain information that constitutes a financial promotion. It is intended only for persons who are classified under FCA rules as:
- Certified High Net Worth Individuals (per FCA COBS 4.12)
- Self-Certified Sophisticated Investors (per FCA COBS 4.12)
- Elective Professional Clients
- Institutional or Professional Investors
- Eligible Counterparties
If you do not meet one of these categories, you should not proceed. The content is not suitable for retail clients and does not constitute investment advice or a public offer.
These investments are designed for experienced or informed investors who understand the risks involved. They are not suitable for everyone and carry a risk of loss, including the full loss of capital.
By clicking “AGREE”, you confirm that:
- You fall within one of the investor categories listed above.
- You understand that these are high-risk investments and that you could lose all the money you invest.
- You have read and understood our Key Risks page, which outlines the principal risks associated with these investments.
- You will not rely solely on the content of this website when making an investment decision.
If you are unsure whether you meet the eligibility criteria listed above, you should not proceed. We recommend seeking independent financial advice before continuing. You should not attempt to self-certify unless you fully understand the relevant investor definitions and the risks involved. The tax benefits available depend upon your individual circumstances and these benefits may change dependent upon future legislation. You accept that this is a high-risk investment and may not be suitable for all investors.