Risk Information
Risk Summary
Estimated reading time: 2 min
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be very complex and high risk.
What are the key risks?
- You could lose all the money you invest
- You are investing in a debt instrument issued by A.S.K. Partners SPC Limited (SPC) on behalf of ASK Partners Lendco Limited. It is a limited-recourse, funded participation linked to an underlying real estate loan. You do not lend directly to the underlying borrower and do not have direct rights over the real estate or loan security.
- SPC pays you the agreed share of principal and interest it receives from the underlying loan. If the borrower defaults, or recoveries are delayed or insufficient, you could lose some or all of your investment. SPC does not cover any shortfall.
- Advertised returns are not guaranteed. This is not a savings account. A higher advertised return can mean a higher risk of loss.
- If held in an Innovative Finance ISA (IFISA), eligible returns may be tax free, but the IFISA does not protect you from losses. You can still lose some or all your investment.
- You are unlikely to be protected if something goes wrong
- Financial Services Compensation Scheme (FSCS) protection does not cover poor investment performance or the underlying borrower’s failure to repay. Use the FSCS investment protection checker here to learn more
- Financial Ombudsman Service (FOS) protection does not cover poor investment performance. FOS may consider a complaint about an FCA-regulated firm involved with the platform. Learn more about FOS protection here.
- You are unlikely to get your money back quickly
- If the underlying borrower defaults, or if the agent is required to issue enforcement notice, restructuring the loan or a sell the asset, this may delay interest and repayment beyond the stated term.
- The investment is capable of transfer on the secondary market however this is not a guaranteed market and transfer will only be possible if there is another party willing to buy. You are not permitted to transfer your investment outside of the ASK Secondary market. You should expect to hold the investment until the end of the term.
- This is a complex investment
- Your rights are against SPC, not the underlying borrower. You have no direct interest in the underlying loan documents, receipts, property or security. SPC is not your agent, trustee, fiduciary or custodian.
- The investment involves several parties, contractual arrangements and payment priorities. Decisions or changes affecting the underlying financing, enforcement action, associated costs, competing claims, and uncertainty over the amount and timing of recoveries may reduce or delay payments to you.
- You may wish to get financial advice before deciding to invest.
- Don’t put all your eggs in one basket
- Investing in one borrower, real estate project or investment type is risky. Spreading your money makes you less dependent on any one performing well.
- A good rule of thumb is not to invest more than 10% of your money in high-risk investments
If you are interested in learning more about how to protect yourself, visit the FCA’s InvestSmart website.