Risk and Security
Like any investment, there are always factors that should be considered before you make a decision to invest.
This does not mean that all SIPP and SSAS providers will accept the Bonds, but it is worth asking your provider if you would like to hold it within your own SIPP or SSAS.
The Bond is not protected against loss by the Financial Services Compensation Scheme.
The impact of actions, inactions or retrospective legislation in jurisdictions in which the Company operates may adversely affect its activities.
- Contractions in the UK economy or increases in inflation resulting from domestic or international conditions (including movements in domestic interest rates and reduced economic activity);
- Increases in the Company’s expenses (like cost of goods and services);
- New or increased government taxes, duties or changes in taxation laws;
- Fluctuations in equity markets in the UK and internationally. A prolonged and significant downturn in general economic conditions may have a material adverse impact on the trading of the Company and its financial performance.
The Company may be dependent on the skills of senior people with particular expertise or contacts. Deprival of their services – whether it is through them changing job, or through illness or death – could impact the business.
The Company may for any individual project consider it in the interest of the project and the returns to the Company to accept bank lending should it be available. If this is the case, then the bank would have first charge over the asset of the project so the Company may in some circumstances find it difficult, time consuming or ultimately may lose the ability to realise its security or charge.
The Security Trustee cannot guarantee return of any monies in the event of default. Note also that the Security Trustee has no role in the day to day management of the Company.