Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

Estimated reading time: 2 min

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

1. You could lose all the money you invest

If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.

2. You are unlikely to be protected if something goes wrong

Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker

HERE  [www.fscs.org.uk/check/investment-protection-checker/]

Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA- regulated firm, FOS may be able to consider it. Learn more about FOS protection

HERE [https://www.financial-ombudsman.org.uk/consumers]

3. You won’t get your money back quickly

Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.

The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.

If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.

4. Don’t put all your eggs in one basket

Putting all your money into a single business or type of investment for example, is risky.

A good rule of thumb is not to invest more than 10% of your money in

High-Risk Investments. [https://www.fca.org.uk/investsmart/5-questions-ask-you-invest]

5. The value of your investment can be reduced

The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.

These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

If you are interested in learning more about how to protect yourself, visit the FCA’s website

HERE [https://www.fca.org.uk/investsmart]

How to invest in an EIS with WealthMe - FOR ALL EXISTING WEALTHME INVESTORS

1. Once you have chosen the EIS(s) that you are interested in, click on the 'More info' button on the right.

2. Press the 'Download Pack' button at the bottom of the product page to download and read the prospectus & brochure for each of the EIS offers that interest you.

3. Once you have chosen the EIS(s) that you wish to apply for, then please call us on 033 33445522 so that we can add the application(s) to your client portal.

How to invest in an EIS with WealthMe - FOR ALL NEW WEALTHME INVESTORS

1. Please call us on 033 33445522 so that we can set you up on our client portal.

2. Once we have set up your secure portal folder, we will begin the regulatory checks, as required by the Finacial Conduct Authority FCA. This is to ensure that you have the correct profile to invest in these high risk investments.

3. We will conduct relevant checks eg AML checks.

4. We will ask you to complete the necessary forms, eg 'Appropriateness Questionnaires', 'Investor categorises', 'disclaimers' etc.

5. Once completed, we will assess if these investments are appropriate for you.

6. If successful, we will add the product documentation and application in your folder for completion.

7. PLEASE NOTE - a minimum 24 hour cooling off period is required for first time investors. At least 24 hours must elapse during the above process.

Table heading explanations:

• Initial Charge: Initial charges are up front charges applied by the product provider on your investment.
• Total Rebate: Loyalty bonus and/or early bird discount, which may be offered by the product provider.
• Financial Conduct Authority FCA New changes - We are now unable to offer discounts on EIS/SEIS investments and/or IHT portfolios as the FCA has banned any incentives to invest, including savings on the initial charges that could encourage someone to invest in these investments.
• WealthMe Arrangement fee: The arrangement fee is paid by the product provider from the Initial and/or trail commission.

For full details on the rebates and charges of each product please click “More Info”.

If you wish to invest in an EIS which is not on our website, then please call us on 03333445522 and we will endeavour to assist you.

We cannot guarantee processing late applications.