Businesses joining Ethex are expected to meet high standards of governance and performance.
In particular you need to be able to demonstrate that social and/or environmental benefits are a central part of your business model, and that transparency is integral to how you run the business.
On behalf of our community of positive investors, we will apply as much due diligence to your social and environmental impact as to your balance sheet and projections.
The following are key requirements:
- Your business must offer a positive social benefit at the heart of its mission.
- Your investment product must be either approved as a financial promotion or exempt, and suitable for the retail ethical investment market.
- Your business needs to be suitably robust and appropriate for the individual investor.
- For investment products, we would normally expect you to pay an annual return that at least keeps pace with inflation, usually at least 2% a year.
If you are not sure about how to proceed we can team you up with one of the experienced social investment advisors we work with.
We expect you to have a well-established board of directors that includes non-executives; an experienced and committed management team; and the ability to report on the social and environmental benefits of the business as well as turnover, profit and loss.
While you should have a strong business model, we know that ethical businesses come in all shapes and sizes. Your legal structure is most likely to be a Limited Company, a Co-operative, a Charity or a Community Interest Company.
The final decision on which businesses can list on Ethex lies with our board of directors.
The Community Shares Standard Mark
If your organisation is considering a community share offer, we recommend you seek endorsement by the Community Shares Standard Mark, although you are not obliged to do so if listing on Ethex.
This is a voluntary form of self-regulation, based on an independent peer review by a licensed practitioner. This review acts as a final check on the quality of a community share offer before it is launched to the public. In an unregulated financial environment, the Standard Mark provides confidence to potential investors as well as to societies and their management committees, to commercial lenders, social investment financial intermediaries and public funding agencies.
Contact our Business Development team for more information on our services:
The Ethex team are here to help from 9am to 5pm
01865 403 304