When issuing IPS withdrawable shares, there is normally an exemption from regulation available. However, to be
confident of staying within the law, we always recommend:
- Arrange for your offer document and other materials to be independently checked to ensure that they are not misleading or inaccurate in any way.
Limit your share issue to one of the following recognised types:
Membership – aimed at your community of interest for the purpose of increasing membership and participation. No detailed offer is necessary, but minimum investments should be low.
Pioneer - raising an approximate amount of funding from close supporters or experienced investors for the purpose of developing a business idea. Returns may be uncertain, and risks should be fully acknowledged.
Time bound – raise funds to a fixed target, and return funds if the target is not met. A detailed offer document provides evidence showing a high likelihood of predictable returns. This can be directed to the general public.
If you are hoping to secure EIS tax relief for investors, secure advance assurance first. For more information, see www.communityshares.org.uk.
The SCS Mailing List
If you are raising investment according to these guidelines, you may wish to make use of the mailing list held by Somerset Co-operative Services CIC. Based on records published by Companies House, but refined through regular communication, the list is made up of people who have previously invested in social enterprises. See information sheet for further information.