Don’t invest unless you’re prepared to lose all the money you invest. These are high-risk investments and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

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Risk summary for non-readily realisable securities which are shares:

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

Last updated: 01 August 2026

What are the key risks?
  1. 1. You could lose all the money you invest

    If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.

  2. 2. 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 or visit: www.fscs.org.uk/check/investment-protection-checker.

    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 Financial Ombudsman Service Protection or visit: www.financial-ombudsman.org.uk/consumers .

  3. 3. You won’t get your money back quickly

    Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.

    The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.

    If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.

  4. 4. Don’t put all your eggs in one basket

    Putting all your money into a single business or type of investment, for example, is risky. Spreading your money across different investments makes you less dependent on anyone to do well.

    A good rule of thumb is not to invest more than 10% of your money in high-risk investments. Read more at FCA InvestSmart Guide or visit: www.fca.org.uk/investsmart/5-questions-ask-you-invest .

  5. 5. The value of your investment can be reduced

    Putting all your money into a single business or type of investment, for example, is risky. Spreading your money across different investments makes you less dependent on anyone to do well.

    The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up 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.

    If you are interested in learning more about how to protect yourself, visit the FCA website: FCA InvestSmart or visit: www.fca.org.uk/investsmart .

    Please find the PDF version of the Risk Summary .

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Thomas Pitre
6TH February 2023
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<span id="hs_cos_wrapper_name" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="text" >PS22/10: The FCA's New Rules.</span>

PS22/10: The FCA's New Rules.

Thomas Pitre
6TH February 2023

 

The Financial Conduct Authority (FCA), our governing body, has introduced new guidelines affecting investments in private businesses, including EIS, SEIS, and Inheritance Tax Portfolios (with the exception of VCTs and AIM ISAs). These modifications are aimed at ensuring only those who fully grasp the inherent dangers are granted the chance to invest.

To comply with the updated regulations, we are making a few alterations. The following serves as a quick rundown of the changes.

It is important to note that the information provided on this website is for seasoned investors only and should not be construed as advice, research, or a personal recommendation to invest. If you are unsure, please seek professional guidance.

 

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What's Different?

  1. Identity Verification: Before accessing the application process for investments, we will verify your identity. Although you can still apply online for all the investment opportunities listed on our website when you click on "Invest Now," we will ask for your email address. This is to determine if you have used our service before. For current Sapphire investors, simply enter the email address we have on file, and you'll be directed straight to the application form. If the email address cannot be matched, you will be considered a first- time investor.
  2. Reflection Period: Only first-time investors are required to wait 24 hours between expressing interest and applying. This provides them with time to contemplate the risks and determine if they still wish to proceed.
  3. Investor Declarations: Starting February 1st, all individuals will need to complete the new
    declarations before applying for investments in private companies, including EIS, SEIS, and Inheritance Tax Portfolios. The declaration will remain valid for a one-year period.
  4. Application Questions: During the application process for investments in private companies, excluding VCTs and AIM ISAs, we will ask several questions to gauge your knowledge and experience. These questions should be straightforward for any seasoned investor and will need to be answered accurately to complete the application.
  5. No Discounts: The FCA has banned any incentives, including reduced initial charges, that
    could encourage investment. Please note that this does not apply to VCTs or AIM ISAs.

The Sapphire guide to SEIS & EIS Funds

Thomas assists in the setting up and management of SEIS/EIS investment funds. Thomas is a student member of the Institute of Directors and has also successfully completed the EISA Organisation's EIS diploma and is an EIS Affiliate. After successfully completing the Investment Management Certificate (IMC), he became an active member of the UK's Chartered Financial Analyst Institute (CFA UK).

Thomas Pitre
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