It is important that you understand the following general points about holding community shares in St Ives CLT:
As a Registered Society under the Co-operatives and Community Benefit Societies Act 2014, St Ives CLT Ltd is registered with, but not authorised or regulated by, the Financial Conduct Authority. Any money you pay for shares is not safeguarded by any depositor protection or dispute resolution scheme. In particular, you have no right of complaint to the Financial Ombudsman Service, nor any access or entitlement to the Financial Services Compensation Scheme.
An investment in community shares is an at-risk investment in a trading business, not a loan or a deposit, and rates of return are not guaranteed. This investment should be considered as a medium to long term investment with a primarily social objective. Your shares may not be readily convertible to cash should you need to withdraw them.
As a member and shareholder of St Ives CLT you could, if the business is unable to meet its debts or other liabilities, lose some or all of your investment held in shares. However, your liability is limited to the amount that you have paid for your shares. Whilst it is the Society’s intention to pay interest on shares at the rate advertised in this document, community shares do not enjoy any capital growth. You may apply to the Society to withdraw your share capital (from three years from the date at which this share offer closes), and if funds are available, subject to Directors’ decision, shares may be redeemed at face value only.