Appointed Representative (AR):
A bond is form of debt-based investment where there is a “promise to pay” the original investment back to the individual or entity who lent this money, usually with an additional interest payment(s) being paid after an agreed-upon period of time.
Some bonds may be ‘asset backed’, meaning there is a physical asset generating money to pay investors’ interest. An asset backed bond may also be ‘secured’, meaning that bondholders have the right to demand that the asset be sold to repay their investment.
Most bonds offered on ShareIn’s clients’ platforms are ‘unlisted’, meaning that they are not traded on a recognised exchange.
Bonds fall under the FCA’s definition of debentures (see link under ‘Resources’ at right).
Crowdfunding is a method of funding a project or organisation by pooling the money of individual investors. It can provide a number of benefits beyond the financial aspect including marketing, audience engagement, and feedback. There are a number of types of crowdfunding but the 3 main categories are:
- Reward or donation-based crowdfunding (these are not investments)
- Loan crowdfunding (often referred to as peer-to-peer loans or P2P)
- Investment crowdfunding (The process whereby people i.e. the 'crowd' invest in a company in exchange for an investment in that company). It could be a share (equity) or a bond or a debenture.
When you buy equity, you own part of the company and become a shareholder. Companies ‘issue’ shares in order to raise money – for example, if they issue 1 million shares at a value of £1 each, they raise £1 million! When the company goes on to make money, or grows in value, the shares grow in value, making the shareholders' initial £1 worth more. Obviously share can drop in value also!
Equity can only be ownership of a company, not of an actual physical asset. Some of our clients are involved in property but in this case the underlying asset is owned by a company called a Special Purpose Vehicle (SPV), and investors own equity in the SPV, not the underlying asset.
The FCA isthe Financial Conduct Authority in the United Kingdom. They are an independent regulatory agency and are accountable to the UK Treasury. The FCA work to ensure that businesses operate in accordance with financial regulations, keeping investors safe from harmful practice.
ShareIn are directly authorised and regulated by the FCA (FRN 603332), meaning we have direct permission to carry on a range of investment related activities, and our Appointed Representative (AR) clients can also undertake these permissions. Supervising an AR is an area which the FCA pays particular attention to. We take on the full responsibility for an AR’s actions, compliance and competence.