Your questions, answered.
The Bonds are non-readily realisable, secured, fixed interest, transferable, debt instruments issued by the Company. To secure the obligations of the Company, each of the Company, Creative Litigation Funding Solutions (UK) Ltd (HoldCo) and Creative Litigation Funding Solutions (Jersey) Ltd (LitCo) has entered into a fixed and floating charge over all its present and future assets pursuant to the Group Security Documents. The Bonds allows Bondholders to lend money to the Company in exchange for interest payments. The Bonds pay a fixed rate of interest that does not change over its life. The original full face value of each Bond is returned 5 years after it is issued. The Bond is secured on the assets of the Company, Creative Litigation Funding Solutions (UK) Ltd and Creative Litigation Funding Solutions (Jersey) Ltd. The Security Trustee holds the security on behalf of Bondholders pursuant to the Security Trust Deed.
The UK Government introduced the Innovative Finance ISA (IFISA) on 6th April 2016. This new type of ISA allows individuals to use some (or all) of their annual ISA investment allowance to invest into debentures such as the Bonds, and then to receive all the interest earned tax-free. It is important to understand that with an IFISA your capital is at risk and it is important you read the associated risks with this investment in the section entitled “Risk Factors” of this Information Memorandum. Tax treatment depends on the individual circumstances of each investor and may be subject to change in future.
Yes, in order to transfer the balance from existing cash or stocks and shares ISAs to the IFISA simply complete the Application, which can be found on the Website. The ISA manager we work with will then contact your existing ISA manager and send to you a document pack to review, sign and return in order to arrange the transfer on your behalf. You should also check with your current provider to determine if you will be charged any exit fees.
A subscription for the Bonds should enable you to potentially achieve: (a) a higher return than you are likely to receive from your bank account, which reflects the additional risk. Please see the Section headed Risk Factors to find out more about the risks associated with subscribing for the Bonds; (b) to potentially diversify your investment portfolio by investing in another asset class, if you do not already have similar debt instrument and have other investments; (c) Competitive annual returns, (1) benefit from bond terms with a fixed interest rate at 8%; (2) a low minimum investment amount of £2,000.
Individuals aged 18 or over or firms, trusts, and foundations based in the UK and other select overseas territories, except the USA. You must pass any anti-money-laundering and due diligence checks that we run and be one of the following types of Bondholders: • Existing clients of a financial advisor who is regulated by the Financial Conduct Authority; • Persons who meet the criteria for being an elected professional client in accordance with the FCA’s Conduct of Business Rules (which are regulatory rules relating to investment advice) (“COBS”) 3.5; • Persons who qualify as certified high net worth individuals in accordance with COBS 4.7.7; • Persons who qualify as certified sophisticated Bondholders in accordance with COBS 4.7.7; Persons who confirm that they will only invest 10% of their net assets in non-readily realisable securities in accordance with COBS 4.7.10 (restricted Bondholders).
The terms of the Bonds are set to pay interest at a fixed rate of 8% per annum. Interest will be calculated on a simple basis and paid to each Bondholder on the Redemption Date or repurchase of the Bond. A fee for the IFISA Plan Manager will be deducted from interest payments due to Bondholders. The fees payable are detailed in the Just ISA Terms and Conditions.
Any amount of Bonds can be purchased subject to a minimum per Application of £2,000 until the subscription limit is met.
There is currently no charge for investing in the Bonds.
Click on the ‘Sign in’ box in the top-right of the Website homepage. Sign in with your username and password (if you have forgotten your password, see ‘I have forgotten my password. What should I do?). The dashboard will show you how much you have invested. Here you can invest more, view important documents, and change your account details.
Please read fully and carefully consider the section entitled Risk Factors in the IM.
The Bonds are secured investments and FSCS protection does not apply to them. Therefore, if the Company were to become insolvent or go out of business, holders of Bonds may lose all or part of their investment in the Bonds and no government or other body would be required to compensate them for such loss. There are two types of relevant FSCS protection that apply to Bondholder: deposits and investments. Deposit protection applies when money belonging to Bondholders is held in the Client Account. With investments in Bonds, this occurs initially when investor money is transfered to us by way of the ISA Manager to make an investment and when interest repayments and the repayment of capital are being held on behalf of Investors. While the money is in a Client Account (which is likely to be a short period) it is protected by the FSCS deposit protection which is currently £85,000 per person. Investment scheme protection may be available in cases where loss is incurred by factors such as misspelling or misrepresentation incurred as a result of the arrangement of the investment on the ISA manager’s part, or on the part of its appointed representatives. The FSCS investment protection is currently up to £50,000 per person. The FSCS is a fund of last resort to cover any claims Bondholders might have against a firm that is in default. However, this will only be applicable to the IFISA Plan Manager and not to the Company itself. For more detail on the FSCS and their eligibility criteria see their website.
In the first instance of any concerns that you may have with the Company please contact our customer services team at info@ justisa.co.uk so that we can investigate your complaint fully. Please ensure that you include all of the following information: your full name and address, your investment details, what has happened / gone wrong, and how you would like us to put it right. A member of the team will acknowledge receipt of your email and will investigate the matter thoroughly before responding fully within five working days. In the event you feel that we have not resolved your concern satisfactorily, you may be entitled to complain directly about the Company, the operator of the platform, or the IFISA Plan Manager (which has approved the Memorandum) for the purpose of FSMA 2000), the operator of the Client Account, directly to the Financial Ombudsman Service. For more detail on the Ombudsman and their eligibility criteria see their website:
The Company (or the IFISA Plan Manager on its behalf) is responsible for ensuring that interest is being paid to Bondholders. Interest payments are paid directly into the Bondholder’s Account.
Bonds are non-readily realisable securities and while they are transferable there is no secondary market for these bonds.
The Company pays you a fixed rate of interest on the basis that, except in exceptional circumstances (see ‘What happens to my Bonds if I die?) your money stays invested for the whole of the agreed term. There is no current secondary market for bonds. We will look at early redemption applications on an exceptional basis and will endeavour to help Bondholders where possible but it is important that you understand that you are committing your money for the term of the Bond you select. This is also covered in the Risk Factors section.
If you die while owning Bonds, your investment can be transferred to an authorised person acting on behalf of the estate. If you are acting on behalf of the estate of a deceased investor who owns Bonds, please email [email@example.com ].
The Company has a right to redeem the Bonds prior to their Redemption subject to the payment of principal Interest outstanding on the Bonds up to their Redemption Date and [an additional payment of three month’s Interest (by way of compensation for early repayment)].
You have the right to cancel your investment account within 14 days after the date you receive an e-mail from the IFISA Plan Manager to confirm that you have had your ISA application accepted. After this, you generally cannot get your investment back until the end of the term (see Can I get my investment back early?). To cancel within the first 14 days, please email, telephone or write to the IFISA Plan Manager in accordance with the Just ISA Terms and Conditions.
You can request for your password to be reset from the Website.
You can do this on your personalised dashboard.