Important Risk Warnings
What are the key risks? You could lose all the money you invest
- If Blue Diamond fails, you are likely to lose 100% of the money you invested.
- Checks on the businesses you are investing in, such as how well they are expected to perform, have not been carried out by the BD platform you are investing through. You should do your own research before investing.
You are unlikely to be protected if something goes wrong
- The Channel Islands Financial Ombudsman (CIFO) will not be able to consider complaints related to this firm. Learn more about CIFO protection: https://www.gfsc.gg/consumers/complaints/ombudsman
You won’t get your money back quickly
- Investments in private companies are not listed or traded on a public markets . This means that it may be difficult to sell your investment when you wish to do so and there is no guarantee that you will find a buyer at the price you are willing to sell for.
- Even if Blue Diamond is successful, it will likely take several years to get your money back. You are unlikely to be able to sell your investment early.
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. Spreading your money across different investments makes you less dependent on any one to do well.
The value of your investment can be reduced
- As your investment is shares, 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.
- 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.
The tax reliefs for investing in private companies may be subject to change
- The tax treatment of all investments depends upon individual circumstances and on compliance with the relevant rules which may be subject to change.
- This website is intended to provide general information regarding the BD platform and is not intended to, nor does it, constitute investment or other professional advice or a recommendation to buy, sell, hold or solicit any investment, security or other financial instrument or product. You should consult suitably qualified professional advisers before making any investment decision or taking, or omitting to take, any action which might affect your personal finances or business affairs.
The investments do not have a prospectus which has been subject to approval by a regulatory authority
- Investments in private companies are not listed or traded on a public markets . As there is no offer to the public and no public trading, private companies are not required to seek approval from a regulatory authority for a prospectus or listing document.
If you are interested in learning more about how to protect yourself, visit the GFSC’s website: https://www.gfsc.gg/consumers/investment