The money paid for shares is not safeguarded by any depositor protection scheme such as the Financial Services Compensation Scheme (FSCS).
Foundation East is not an authorised institution under the Financial Services and Markets Act 2000 or deposit protection scheme for investors.
The withdrawable shares are a risk investment for the purpose of the relief of poverty through the promotion of enterprise. The issue of shares by Foundation East does not constitute an offer to the public under section 85 Financial Services and Markets Act 2000 since it is not an issue of transferable securities nor is it a Controlled Investment by virtue of paragraph 16(3) of schedule 1 of the Financial Services and Markets Act 2000 (Financial Promotion) order.
Note that the shares are not tradeable and the full value would not be returned if the risks to income described were to materialise.
Foundation East has a strong balance sheet and income from its existing loan book. It has always paid back money invested or lent in accordance with the relevant terms of its facilities and will take any commercially practicable steps to protect the investment made under this share offer.