Investing in non-readily realizable and/or non-transferrable securities (illiquid) involves high risks. The value of your investment can go down as well as up and you are at risk of losing all funds invested should something go wrong. Any historical performance of investment opportunities is NOT a guide for future performance and any projections of future performance are based on all information known at the time of share investment or debt investment, and calculations and opinions of the management of underlying investment opportunities. Any projections are subject to change and are not guaranteed and should not be relied upon as such. Risks include the total loss of your share investment or debt investment. All investment opportunities introduced to by KCS are NOT regulated by the Financial Conduct Authority (FCA) and you will NOT have access to the Financial Ombudsman Service (FOS) and/or the Financial Services Compensation Scheme (FSCS). Please refer to the Key Risks section below for a more comprehensive description of the various potential risks involved. You SHOULD read those BEFORE you make any investment decision. All investors should seek independent professional advice before deciding to invest.
Unregulated investment opportunities in complex instruments are considered high risk. Therefore, we can only deal with exempt, sufficiently knowledgeable and experienced investors who are High Net Worth Individuals or Sophisticated Investors, who pass our knowledge and experience test and understand the risks involved. If you do not meet these criteria, you must NOT take any further action and leave this site.
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. KCS 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 KCS Property 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).
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.
Prospective investors will also be required to pass our knowledge and experience test and be capable of evaluating investment decisions independently.
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.
The information on this website is not for distribution and does not constitute any kind of offer to sell or the solicitation of any offer to buy any securities in the United States of America to or for the advantage of any United States person (either living in the United States of America or partnerships or corporations organised under those laws hereof). None of the products available from this site have been registered in the United States of America under the Investment Company Act of 1940 and interests therein aren’t registered in the United States under the Securities Act of 1933.
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 KCS 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. KCS 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.
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 and Loan Notes
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 website or seek an independent financial advice.
Risks Relating To (S)EIS Qualifying Investment Opportunities
There are circumstances in which an investor could cease to qualify for the taxation advantages offered under (S)EIS schemes. If any companies cease to carry on a Qualifying Trade during the three-year period, this would prejudice its qualifying status under the (S)EIS schemes. Further, if the funds made available to a company are not used within 24 months, a company would be in breach of these rules and tax reliefs would be withdrawn. This may result in the individual being required to repay any (S)EIS relief already claimed, as described below. Any provisional assurance from HM Revenue & Customs that a company and its activities qualify under the (S)EIS is never a guarantee that these provisional assurances or formal (S)EIS clearances will not be subsequently withdrawn. In those circumstances, subscription monies will not be returned to investors. Returns to investors will be lower in the event that a company fails to obtain EIS tax relief or if it is subsequently withdrawn, in which case the (S)EIS income tax relief and capital gains tax deferral/reinvestment relief referred to below would not be granted. A failure of a company to meet the qualifying requirements for the (S)EIS could result in Investors being required to repay the appropriate income tax relief received, depending on whether relief has been claimed under (S)EIS schemes on subscription to a company and interest on the same; a liability to capital gains tax on a disposal of shares in a company; and any gain covered by capital gains tax deferral relief becoming crystallized. A sale of shares in a company within the three years after the date of issue will result in income tax relief made available upon investment in those shares being withdrawn and a liability to capital gains tax on disposal (both the gain on the disposal of the shares and any gain deferred under capital gains tax deferral/reinvestment relief). Investors are advised to take appropriate independent professional advice on the tax aspects of their investment as it is possible for investors to lose their (S)EIS tax reliefs and/or capital gains tax reinvestment relief and/or Inheritance Tax Relief by taking or not taking certain steps. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
Any changes in legislation or HMRC practice may affect the value of an investment in a company. In particular, those Investors who choose to defer a gain may face a higher capital gains tax liability when the deferred gain comes back to charge following an exit from a company. The value of the tax reliefs will depend on the individual circumstances of investors and may be subject to change in future. In addition, the availability of tax relief depends on a company maintaining its qualifying status.
Illiquidity, Diversification and Exit
All investments available via KCS, are unregulated, complex, and non-readily realizable 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.
Each investment is a long-term commitment and you should only invest an amount that you are willing to lose.
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.
If you have any further questions – please contact your KCS adviser