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Mikey
03-02-2015, 05:16 PM
A local Compliance Officer has tracked down the rule that's relevant to the Hibs share issue...........


There are several rules regarding promoting non readily realisable securities. The rule the Hibs advisers are using is as follows:
COBS 4.7.8
A firm may communicate or approve a direct-offer financial promotion relating to a non-readily realisable security to or for communication to a retail client if:
(1) the firm itself will comply with the suitability rules (■ COBS 9) in relation to the investment promoted; or
(2) the retail client has confirmed before the promotion is made that they are a retail client of another firm that will comply with the suitability rules ( ■ COBS 9) in relation to the investment promoted; or
(3) the retail client is a corporate finance contact or a venture capital contact.

In this situation they are using rule 2 above so you are confirming if the investment is suitable. The COBS 9 rules stated above are the normal suitability rules that you would use for any investment you were advising the client about.

The other firm also want you to sign the document to state 'you have undertaken an assessment of the suitability of an investment in Hibernian by this Potential Applicant and has deemed them to be suitable to invest in non-readily realisable securities of this type.'

This means you need to make sure the investment is suitable for the client, matches their attitude to risk and their circumstances. So you do need to give advice as to the suitability of the purchase of the shares and not just suitability from an affordability point of view. Normally this type of investment would only be suitable for high net worth individuals with a high ATR.

Also, there are specific qualifications relating to advice on shares, which this would be classed as. One of the exams is the CII's J12 securities advice and dealing, another is the CII's certificate in securities advice and dealing.

It does back up IFAs not being awkward or asking for money. Their livelihood is on the line if they don't play by the rules, basically if you don't have the licence to give advice on specific shares they would lose their other licences and be out of a job.


There's more here under the Non-readily Realisable Securities section (4.7.7).....

http://fshandbook.info/FS/html/handbook/COBS/4/7

Danderhall Hibs
03-02-2015, 05:46 PM
A local Compliance Officer has tracked down the rule that's relevant to the Hibs share issue...........



It does back up IFAs not being awkward or asking for money. Their livelihood is on the line if they don't play by the rules, basically if you don't have the licence to give advice on specific shares they would lose their other licences and be out of a job.


There's more here under the Non-readily Realisable Securities section (4.7.7).....

http://fshandbook.info/FS/html/handbook/COBS/4/7


Cheers Mikey.

I think they should make current shareholders speak to an IFA as well. It's so complex and minefieldish that I wouldn't want anyone to get stung.

I'm sure we can all agree on that.

NAE NOOKIE
03-02-2015, 06:09 PM
I'm thinking of going down this route ... I would imagine that an IFA would only have a problem later on down the line if a punter complained when the shares didn't make money, but I would guess that there will be few buyers who are not buying through emotion so the chances of that happening must be very slim indeed.

This all depends on how much an IFA would charge to in effect rubber stamp a document. If for example I have to fork out £100 to buy £250 worth of shares, which I know are worthless without needing the advice of anybody to that affect, never mind an IFA, then its hardly going to be worth it.

This is all in my opinion of course .... I am not qualified to give financial advice.

lapsedhibee
03-02-2015, 06:15 PM
Normally this type of investment would only be suitable for high net worth individuals.

Oh well that's me out. Pity.

PatHead
03-02-2015, 09:20 PM
I'm thinking of going down this route ... I would imagine that an IFA would only have a problem later on down the line if a punter complained when the shares didn't make money, but I would guess that there will be few buyers who are not buying through emotion so the chances of that happening must be very slim indeed.

This all depends on how much an IFA would charge to in effect rubber stamp a document. If for example I have to fork out £100 to buy £250 worth of shares, which I know are worthless without needing the advice of anybody to that affect, never mind an IFA, then its hardly going to be worth it.

This is all in my opinion of course .... I am not qualified to give financial advice.

Problem is that we are not allowed to rubber stamp a document.

If I could I would do it but it just is not worth the risk in this day of litigation and at the danger of deregulation

erin go bragh
03-02-2015, 09:33 PM
What a lot of nonsense . Its going to stop loads of folk buying say £200 worth of shares . Im certainly no paying £300 to get £200 worth of shares .

Ggtth

jacomo
03-02-2015, 09:36 PM
Normally this type of investment would only be suitable for high net worth individuals.

Oh well that's me out. Pity.

It's ok. We live in abnormal times. :wink:

Andy74
03-02-2015, 09:50 PM
Problem is that we are not allowed to rubber stamp a document.

If I could I would do it but it just is not worth the risk in this day of litigation and at the danger of deregulation

Chances of the FCA getting involved in selling of Hibs shares or anyone taking their own action against an IFA is non existent though.

hibby6270
03-02-2015, 10:41 PM
Chances of the FCA getting involved in selling of Hibs shares or anyone taking their own action against an IFA is non existent though.

Regrettably the day of the age of bureaucratic financial silliness that we currently live in. :boo hoo::rules:

Most folk on this forum will be aware of the alleged PPI mis-selling by banks. You'll all have had a phone call (or a thousand) telling you you're due some cash. A similar situation is what the IFA has to avoid.

An IFA is legally obliged to ensure that any advice they give, or sign their name against, is a full assessment of the individual's financial circumstances and that the individual understands exactly what they are investing in.

Yes - I think most of us realise that buying shares whether direct or via HSL means it would be very unlikely to yield any financial return in the future. However, the IFA cannot be seen to be negligent in the advice they give and that covers them from any future action that an individual may think they have a case to take an IFA to task for said advice.

The bottom line general advice regarding the purchase of shares is always "the value of shares can go down as well as up". In the case of Hibs shares, it's almost certain the value will go down, even become worthless in financial terms, but anyone who does invest will do so in the knowledge that they are backing the football team and the good of the club. Plus you will technically "own" a very small part of the club and IMHO that's what makes it worthwhile.

Weststandwanab
03-02-2015, 10:43 PM
What a lot of nonsense . Its going to stop loads of folk buying say £200 worth of shares . Im certainly no paying £300 to get £200 worth of shares .

Ggtth

Spot on !



Chances of the FCA getting involved in selling of Hibs shares or anyone taking their own action against an IFA is non existent though.

More chance of me being Pope tonight.

As I have said before I could “blow” excuse the pun £200 on a bet on Hibs with not an I.F.A. In sight but apparently if I want to “invest” £200 in shares in hibs I need an I.F.A.

But more, much more than this, there is a disclaimer in the second paragraph os the “prospectus” which says this is “not a prospectus”.

If it is not a prospectus then there is no need for an I.F.A. !

PatHead
03-02-2015, 11:11 PM
As I have said before I could “blow” excuse the pun £200 on a bet on Hibs with not an I.F.A. In sight but apparently if I want to “invest” £200 in shares in hibs I need an I.F.A.

But more, much more than this, there is a disclaimer in the second paragraph os the “prospectus” which says this is “not a prospectus”.

If it is not a prospectus then there is no need for an I.F.A. ![/QUOTE]

There is no doubt that you could go down the bookies and lose £200. Unfortunately the IFA is signing to say he has given advice and must have an audit trail to back this up and a specialist qualification. That is how you get your non prospectus. It is frustrating but it is the rules and not a lot can be done about it.

malcolm
04-02-2015, 08:00 AM
There is no doubt that you could go down the bookies and lose £200. Unfortunately the IFA is signing to say he has given advice and must have an audit trail to back this up and a specialist qualification. That is how you get your non prospectus. It is frustrating but it is the rules and not a lot can be done about it.

Ok the 'non prospectus' is a financial promotion and the IFA is being asked to approve that it is effectively safe for the hibs fan to read it. The audit trail and assessment of suitability - yes that is all correct but that does not mean that the assessment can't be a very straightforward affair. A huge dollop of common sense is being missed from the whole scenario - if the buyer spending £200 is not in their mind making a financial investment, knows there is no market to resell it with no dividend income and is 100% buying an emotional stake in their club, then the assessment of suitability is done bar confirming they are not funding it via wonga etc. The club could have allowed a self certification route but perhaps thought it safer to go down the IFA 'tick box' route but perhaps did not expect a 'sorry I'm not getting out of bed for an investment of less than£500k' or 'I need to spend 8 hours writing up an in depth suitability record as if the purchase was a punt on some 'sophisticated' hedging instruments' attitude to be prevalent :wink:

The risk to an IFA or Hibs of applying common sense is arguably pretty insignificant and for the latter the attraction of not having hundreds of small investors may have swayed the decision

Bristolhibby
04-02-2015, 08:05 AM
What a lot of nonsense . Its going to stop loads of folk buying say £200 worth of shares . Im certainly no paying £300 to get £200 worth of shares .

Ggtth

When you think about it, and accept this is an emotional purchase not one to make money, why not?

Sure, the extra £100 irks as I'd rather it went to Hibs, but the value of the shares is meaningless because nobody wants to make any money off of them.

J

Andy74
04-02-2015, 09:02 AM
Regrettably the day of the age of bureaucratic financial silliness that we currently live in. :boo hoo::rules:

Most folk on this forum will be aware of the alleged PPI mis-selling by banks. You'll all have had a phone call (or a thousand) telling you you're due some cash. A similar situation is what the IFA has to avoid.

An IFA is legally obliged to ensure that any advice they give, or sign their name against, is a full assessment of the individual's financial circumstances and that the individual understands exactly what they are investing in.

Yes - I think most of us realise that buying shares whether direct or via HSL means it would be very unlikely to yield any financial return in the future. However, the IFA cannot be seen to be negligent in the advice they give and that covers them from any future action that an individual may think they have a case to take an IFA to task for said advice.

The bottom line general advice regarding the purchase of shares is always "the value of shares can go down as well as up". In the case of Hibs shares, it's almost certain the value will go down, even become worthless in financial terms, but anyone who does invest will do so in the knowledge that they are backing the football team and the good of the club. Plus you will technically "own" a very small part of the club and IMHO that's what makes it worthwhile.

My point is this isn't PPI. This is the minor purchase of a football club's shares.

There is no danger that there will be any FCA enquiry into selling of Hibs shares and no danger that the fan will complain about the IFA.

Yes regulation and litigation has gone mad but people can still take a risk based approach to dealing with it.

Mind you a lot of people now make their money hiding behind this stuff instead of finding practical ways to work more sensibly around these issues.

Devonhibs
04-02-2015, 09:43 AM
Has anyone actually taken advice yet and able to give a real figure for this advice?

PatHead
04-02-2015, 12:30 PM
My point is this isn't PPI. This is the minor purchase of a football club's shares.

There is no danger that there will be any FCA enquiry into selling of Hibs shares and no danger that the fan will complain about the IFA.

Yes regulation and litigation has gone mad but people can still take a risk based approach to dealing with it.

Mind you a lot of people now make their money hiding behind this stuff instead of finding practical ways to work more sensibly around these issues.

Most IFAs I know do not have (or want) a qualification allowing them to give advice on Individual shares so there is no way to work around those issues.

ahibby
04-02-2015, 12:56 PM
Daft rule in our situation and will put many off buying direct shares. No way am I going to pay say £100 for advice that I don't need. I declare to the world that I would be happy to frame and hang my share certificate in my loo above the toilet paper knowing perfectly well that the toilet paper below is worth more than the shares. What's the problem!

Bad Martini
04-02-2015, 12:58 PM
From a financial services perspective, the regulations are the regulations. The requirement to know your customer and conduct business with due dilligence is inherent upon all financial institutions and those selling said products...its just a fact, borne from many being "shafted" by dubious practices of old.

There is a need to follow protocol here too, go through the gubbins and finalise the process to ensure the "stamping" can be done.

HOWEVER, did anyone (Hibs?) consider tapping up a friendly IFA, suggesting they'd put a few hundred/thousand punters their way, all with the same need (afforementioned practices) and all needing same advice and asking for a reduction in the IFA fee? I bet they'd do it for volume...and potential future business from wise Hibbys seeking future financial advice of the independent nature, ken, likesay? :greengrin:aok:

Anyhows, cheap advice aside, there's always the HSL route...

Seveno
04-02-2015, 01:38 PM
Most IFAs I know do not have (or want) a qualification allowing them to give advice on Individual shares so there is no way to work around those issues.

That is exactly what I was told by my IFA. He was going to have a word with a mate that does deal in the buying and selling of shares but I am increasing coming round to the HSL route, even if it is presently chaired by Kenny McAskill.

Weststandwanab
04-02-2015, 01:45 PM
Has anyone actually taken advice yet and able to give a real figure for this advice?

I took advice, it took about 30 seconds and, as I have posted before,it cost not a lot and I now have my prospectus that states “this is not a prospectus”.

erin go bragh
04-02-2015, 01:54 PM
I took advice, it took about 30 seconds and, as I have posted before,it cost not a lot and I now have my prospectus that states “this is not a prospectus”.

How much is not a lot WW . Any chance of who did yours could do mine / others . Cheers

Ggtth

HUTCHYHIBBY
04-02-2015, 01:55 PM
I took advice, it took about 30 seconds and, as I have posted before,it cost not a lot and I now have my prospectus that states “this is not a prospectus”.

Is it a secret or are you eventually going to tell us what the monetary value of not a lot is?

hibby6270
04-02-2015, 02:36 PM
One of the IFAs listed on the "unbiased.co.uk" website is just a few doors along the road from me in Salamander Place. I'm going to pop in and find out what exactly is involved to get the form signed.

Like most of you I'm not interested in having a full financial assessment carried out. I have a few hundred quid I can spare/use to buy shares and already understand the potential pitfalls.

I just want the form countersigned to allow me to progress and if that means paying a fee, I'll find out what that it is and then weigh up whether it makes sense to purchase direct or use the HSL option given the small amount in the grand scheme of things that I'm prepared to shell out.

I'll report back.

An afterthought. If anyone buys concert tickets (even Hibs tickets over the phone), there is always a "booking fee" added to the cost of the ticket. You might not like it or agree with what's charged but it's part and parcel if the overall cost of the ticket. Just comparing this to the cost of shares plus IFA fee. Both a necessary evil that we have to accept to get what you want.

MB62
04-02-2015, 02:42 PM
If there is an IFA that is a :hnet: member, would it be possible to set up something that he/she could sign for us and charge each individual £20 or something, (maybe even a charity donation).

I won't be paying for any IFA at £100 a time or more, so I just won't be buying shares.

Weststandwanab
04-02-2015, 02:48 PM
How much is not a lot WW . Any chance of who did yours could do mine / others . Cheers

Ggtth

I can if you P.M. me.





Is it a secret or are you eventually going to tell us what the monetary value of not a lot is?

I think the clue was in that phrase. I do not wish to presume what I was charged would be the same for everyone else as I have known the I,F.A. for many years.

Lago
04-02-2015, 03:43 PM
Really don't think anyone is buying Hibs shares with a view to making a profit, so there is a basic rule of thumb, don't spend more than you can afford to lose. To buy shares its relatively straight forward, open a trading account with a firm who cover Hibs share listing and place your order. Remember in most cases your trading account will have management fees associated with it, usually charged monthly.
So if your prepared to do that ok, but probably best stick to HSL route.

overdrive
04-02-2015, 04:05 PM
Really don't think anyone is buying Hibs shares with a view to making a profit, so there is a basic rule of thumb, don't spend more than you can afford to lose. To buy shares its relatively straight forward, open a trading account with a firm who cover Hibs share listing and place your order. Remember in most cases your trading account will have management fees associated with it, usually charged monthly.
So if your prepared to do that ok, but probably best stick to HSL route.

The shares aren't being listed though as the Club (company) is remaining as a private limited company - we are not floating on a stock exchange. It isn't like going out and buying shares in Tesco or Rolls-Royce. The shares are only available to buy direct from the Club and to do this you need a form signed by an IFA.

NAE NOOKIE
04-02-2015, 05:41 PM
I went into an IFA's office in Galashiels this afternoon .... and I quote:

"Oh yes, we had somebody in yesterday asking about this, I've been in the business for 20 years and no IFA in his right mind will sign this off"

Getting fed up of this now .... My preferred route was buying direct, but its just beginning to look like a giant pain in the backside, looks like HSL for me now.

emerald green
04-02-2015, 05:53 PM
I went into an IFA's office in Galashiels this afternoon .... and I quote:

"Oh yes, we had somebody in yesterday asking about this, I've been in the business for 20 years and no IFA in his right mind will sign this off"

Getting fed up of this now .... My preferred route was buying direct, but its just beginning to look like a giant pain in the backside, looks like HSL for me now.

The bit in bold. Why did he/she say that? Did he/she give a reason?

Tyler Durden
04-02-2015, 06:37 PM
Most IFAs I know do not have (or want) a qualification allowing them to give advice on Individual shares so there is no way to work around those issues.

Out of interest, what's the process for Hibs checking the validity of the IFA approval?

NAE NOOKIE
04-02-2015, 06:39 PM
The bit in bold. Why did he/she say that? Did he/she give a reason?

Basically because shares in any football club, never mind Hibs, can hardly be seen as a sound money making investment. The impression I got was that he saw signing the form as him advising a client to invest in a company he had no confidence in as being financially advantageous to that client.

He was well aware that I didn't care about the financial implications, but his professional integrity not to mention the possibility, no matter how improbable, of comeback later on down the line made it impossible for him to help and as I said, he made it very clear that no other IFA would be likely to either.

lapsedhibee
04-02-2015, 07:21 PM
Basically because shares in any football club, never mind Hibs, can hardly be seen as a sound money making investment. The impression I got was that he saw signing the form as him advising a client to invest in a company he had no confidence in as being financially advantageous to that client.

He was well aware that I didn't care about the financial implications, but his professional integrity not to mention the possibility, no matter how improbable, of comeback later on down the line made it impossible for him to help and as I said, he made it very clear that no other IFA would be likely to either.

Simply bizarre, if that really was his view.

Lago
04-02-2015, 07:29 PM
The shares aren't being listed though as the Club (company) is remaining as a private limited company - we are not floating on a stock exchange. It isn't like going out and buying shares in Tesco or Rolls-Royce. The shares are only available to buy direct from the Club and to do this you need a form signed by an IFA.
Fair enough, but equally no one is buying them in the hope of profit, so it is still a matter of deciding what you can afford to spend (and lose) and go through an appropriate IFA.

macca70
04-02-2015, 07:38 PM
There's some Hibby IFA's I know that would not go anywhere near this. Not even as a favour for family/friends.

There's 2 main reasons:

1) The potential lifelong financial liability the IFA carries should 'Misadvised Share Purchase' be a future area of concern for the FCA. Regardless of whether someone wants to claim against the IFA, the FCA could easily insist on all share purchase sales via an IFA to be reviewed to ensure there is a squeaky clean file and audit trail.

2) The time that would have to be put in to carryout the full compliant process, is not worth the advisers time for a quick £50. If an adviser is following correct procedures, this would take 3/4/5 hours work. Post 'Retail Distribution Review', advisers only operate on a fee basis, they cannot be paid commission from any company and therefore the fee for advice comes directly from the client so time is money.

Overall, if you get an adviser to stamp the form for a small fee then it can only be that they have not fulfilled the full advice process.

NAE NOOKIE
04-02-2015, 07:46 PM
Simply bizarre, if that really was his view.

Don't think its bizarre at all. Its an IFA's job to advise any client of the pitfalls of any investment and to warn them off anything unlikely to make them a profit or lose them money.

lapsedhibee
04-02-2015, 07:51 PM
Don't think its bizarre at all. Its an IFA's job to advise any client of the pitfalls of any investment and to warn them off anything unlikely to make them a profit or lose them money.

Bizarre that he viewed signing the form as being equivalent to recommending the purchase. It's nothing of the sort.

Andy74
04-02-2015, 08:09 PM
Don't think its bizarre at all. Its an IFA's job to advise any client of the pitfalls of any investment and to warn them off anything unlikely to make them a profit or lose them money.

Not really. They would quickly be able to assess whether a £200 was affordable.

PatHead
04-02-2015, 08:56 PM
Don't think its bizarre at all. Its an IFA's job to advise any client of the pitfalls of any investment and to warn them off anything unlikely to make them a profit or lose them money.

Only if they are authorised to advise on Individual Shares. A separate exam has to be sat to comply.

mca
04-02-2015, 09:24 PM
Do we really Need a Stamp on the Share letter to Buy Shares ????

What if you just get the Jobcentre to stamp it !!! :wink:

Argylehibby
05-02-2015, 08:57 PM
Regrettably the day of the age of bureaucratic financial silliness that we currently live in. :boo hoo::rules:

Most folk on this forum will be aware of the alleged PPI mis-selling by banks. You'll all have had a phone call (or a thousand) telling you you're due some cash. A similar situation is what the IFA has to avoid.

An IFA is legally obliged to ensure that any advice they give, or sign their name against, is a full assessment of the individual's financial circumstances and that the individual understands exactly what they are investing in.

Yes - I think most of us realise that buying shares whether direct or via HSL means it would be very unlikely to yield any financial return in the future. However, the IFA cannot be seen to be negligent in the advice they give and that covers them from any future action that an individual may think they have a case to take an IFA to task for said advice.

The bottom line general advice regarding the purchase of shares is always "the value of shares can go down as well as up". In the case of Hibs shares, it's almost certain the value will go down, even become worthless in financial terms, but anyone who does invest will do so in the knowledge that they are backing the football team and the good of the club. Plus you will technically "own" a very small part of the club and IMHO that's what makes it worthwhile.

As I was driving home from work tonight there was an advert on Radio Forth saying "If you have been given bad investment advice you may be able to claim compensation, text ............." Maybe now some folk will understand why an IFA isn't willing / able to rubber stamp the form.

hibby6270
06-02-2015, 12:28 PM
As I was driving home from work tonight there was an advert on Radio Forth saying "If you have been given bad investment advice you may be able to claim compensation, text ............." Maybe now some folk will understand why an IFA isn't willing / able to rubber stamp the form.

My point exactly.

The suggestion that PPI mis-selling was the same as an IFA not giving proper advice wasn't what I was meaning. I was merely trying to highlight the comparison was potentially the same should some scallywag Hibby decide sometime in the future they were misadvised about buying the shares. An IFA can't risk their reputation by just waving it through as though it didn't matter.

Andy74
06-02-2015, 12:59 PM
My point exactly.

The suggestion that PPI mis-selling was the same as an IFA not giving proper advice wasn't what I was meaning. I was merely trying to highlight the comparison was potentially the same should some scallywag Hibby decide sometime in the future they were misadvised about buying the shares. An IFA can't risk their reputation by just waving it through as though it didn't matter.

No but you'd expect an IFA to be able to establish quite quickly whether anyone a was able to spare £200 and they were aware they won't get their cash back.

If the IFA process doesn't allow for that then thats quite poor.

Bad Martini
06-02-2015, 01:24 PM
Can someone confirm what the IFA is actualy signing here? I've not seen the form.

If they are signing to state they have carried out a full due dilligence investigation into the clients' circumstances and in their professional opinion, the client (being fully aware of the risks i.e. total loss of investment) is willing to proceed, then the IFA is stating he has done this, considering the clients' overall financial position, and the client is aware.

This being the case, I see no issue with any IFA signing this. That IS what they are meant to do anyway.

Can someone suggest the difference in this and an IFA advising on someone looking to invest in a stocks and shares ISA, where the POSSIBILITY exists for the client to lose the lot and/or get back less than they invested?

IF, however, the IFA is signing stating this is a good investment for the client on a financial basis, then I can understand why no IFA will sign it as clearly investing money that is very much guaranteed NEVER to return the funds invested, is clearly not in the clients interest financially.

However, are we seriously suggesting this situation has never cropped up before? Someone hasnt had bona fide advice from an IFA, maybe coming into some cash .......... then blowing the ****ing lot on something really stupid, AGAINST, the advice of the IFA?? Surely we're not the first bams to invest money we'll never see again? :cb:greengrin

:aok:

southsider
06-02-2015, 01:32 PM
Cheers Mikey.

I think they should make current shareholders speak to an IFA as well. It's so complex and minefieldish that I wouldn't want anyone to get stung.

I'm sure we can all agree on that.

Rubbish. Namby-pamby state going mad. I am a grown man and if this goes tits-up it is MY fault. I can bet what I like at the bookies or on line but if I want to buy a few shares in MY football club then I need someone to hold my hand. (With a fee, of course)

lapsedhibee
06-02-2015, 04:19 PM
Rubbish. Namby-pamby state going mad. I am a grown man and if this goes tits-up it is MY fault. I can bet what I like at the bookies or on line but if I want to buy a few shares in MY football club then I need someone to hold my hand. (With a fee, of course)
Woosh!

Eyrie
06-02-2015, 07:13 PM
Can someone confirm what the IFA is actualy signing here? I've not seen the form.

If they are signing to state they have carried out a full due dilligence investigation into the clients' circumstances and in their professional opinion, the client (being fully aware of the risks i.e. total loss of investment) is willing to proceed, then the IFA is stating he has done this, considering the clients' overall financial position, and the client is aware.

This being the case, I see no issue with any IFA signing this. That IS what they are meant to do anyway.

Can someone suggest the difference in this and an IFA advising on someone looking to invest in a stocks and shares ISA, where the POSSIBILITY exists for the client to lose the lot and/or get back less than they invested?

IF, however, the IFA is signing stating this is a good investment for the client on a financial basis, then I can understand why no IFA will sign it as clearly investing money that is very much guaranteed NEVER to return the funds invested, is clearly not in the clients interest financially.

However, are we seriously suggesting this situation has never cropped up before? Someone hasnt had bona fide advice from an IFA, maybe coming into some cash .......... then blowing the ****ing lot on something really stupid, AGAINST, the advice of the IFA?? Surely we're not the first bams to invest money we'll never see again? :cb:greengrin

:aok:
Here you go -


STATEMENT BY THE POTENTIAL APPLICANT
I wish to be considered as a Potential Applicant and receive a copy of the Information Memorandum.
In making this decision I confirm that I am not less than 18 years of age and that I have taken advice
from the IFA noted below who is authorised by the Financial Conduct Authority to give financial
advice. On receipt of the Information Memorandum I confirm I will read this carefully and if required
take further advice from an IFA on the suitability of the investment taking into account my personal
circumstances before making any application. I also confirm I have not, and will not invest, more than
10% of my net investible financial assets in non-readily realisable securities.
Signed: ________________________________ Date: ___________________
PRINT NAME: _____________________________

STATEMENT BY THE INDEPENDENT FINANCIAL ADVISER
In counter-signing this letter and/or affixing its stamp the authorised adviser warrants and represents
to NCM Fund Services Limited and Hibernian that the advisor has undertaken an assessment of the
suitability of an investment in Hibernian by this Potential Applicant and has deemed them to be
suitable to invest in non-readily realisable securities of this type. The Adviser also confirms the person
named above meets the standard evidence set out within the guidance for the UK Financial Sector
issued by Joint Money Laundering Steering Group (as amended).

So the IFA isn't being asked to comment on the investment itself, only on the applicant's suitability to invest. There looks to be no obligation for the applicant to consult the IFA regarding the contents of the memorandum.

Danderhall Hibs
06-02-2015, 08:03 PM
Rubbish. Namby-pamby state going mad. I am a grown man and if this goes tits-up it is MY fault. I can bet what I like at the bookies or on line but if I want to buy a few shares in MY football club then I need someone to hold my hand. (With a fee, of course)

:hilarious