A guide to registering on Ethex

The Ethex community of positive investors is over 20,000 strong and made up of many different types of people, all using their money to help create positive change. We are always happy to welcome new investors, and in this brief article, we will go over the registration process for those who are new to the Ethex platform.

As an ethical investment platform, we take our duty of care to potential new investors very seriously. We want to be sure that we provide all the necessary information upfront because we engage with a wide range of investors who have varying levels of understanding of the nature of the direct investments we offer.

All new investors on Ethex must register with us first, and when you do so, there are a few things you need to be aware of.

1. As Ethex operates under an “enterprise scheme” exemption (read more here under our regulation) it is not required to be regulated by the Financial Conduct Authority (FCA), however, we do align with the FCA’s regime to reflect best practices, and it is important that investors understand how their investment works.

2. Direct investments (into a single organisation) are considered high risk by the Financial Conduct Authority as the potential risk is not spread across a portfolio or fund. But this is also why they are ‘high impact’ in nature, delivering funding directly to organisations and projects where it is needed most.

3. All new investors are required to pass an online appropriateness test, to demonstrate that they fully understand the risks associated with the types of investments we offer.

4. Investors must wait 24 hours after completing the registration process before making their first investment.

The investor appropriateness test can seem daunting to new investors, but it needn’t be. It is very important that anyone making an investment on the Ethex platform is aware of the potential risks involved. It involves answering a number of multiple-choice questions on risk and return. In accordance with Financial Conduct Authority guidelines, you have two chances to pass the test, if you do not pass on the second attempt, you must wait 14 days before trying again.

Although it may be tempting to take the test before thoroughly reading the necessary materials, we strongly advise prospective investors not to do this. We need you to be aware of the nature of the risks involved with investing in the types of products we offer and it’s likely you will not pass the test if you don’t fully understand them.

All the information that you need to correctly answer the questions in the test can be found on the Risk Summary and Risks Page of our website. We have also created a Help Page on our site with further information and helpful ‘how to’ videos that will guide you through registration.