FCA Guidance on “High Return Investments”

IMPORTANT ADVICE AND GUIDANCE FROM THE FCA WHEN CONSIDERING “HIGH RETURN INVESTMENTS”

At Clarion we strive to provide investors with the most transparent information as possible in regards to any investment introductions we conduct. As such we believe it is imperative that any prospective investor is provided with as much information as possible prior to considering whether an investment is right or suitable for you.

Predominantly Clarion provides introductory services for established SME companies seeking expansion investment capital for their businesses. With any investment transaction there will always be a level of risk. To suggest otherwise is simply disingenuous. Investing in SME companies can carry a significant degree of risk and is not suitable for any investor whom is strongly risk adverse. Whilst some offerings that we may introduce on behalf of the clients and companies we represent may seek to mitigate investor risks in some way, whether it be structuring an investment to provide security in favor of an investor in the event of insolvency or any other method, it is important to understand that with any investment that there may be a risk of capital loss.

Ultimately whilst investments in SME businesses can be highly attractive due to their proposed interest rates and returns. This is directly linked to the increased risk you may encounter in comparison to something as simple as a high street savings account or managed investment portfolio.

In January of 2020 the Financial Conduct Authority (FCA) in the UK released an online publication for prospective investors who may be interested in considering investments of this nature. This (we feel) was important and appropriate information to make available to prospective investors who may be considering higher return investment products, and as such, in our professional capacity at Clarion we would like to echo this guidance for anyone considering investing in SME businesses.

In this regard we would like to draw your attention to this public release from the FCA via a link to their official website; https://www.fca.org.uk/consumers/high-return-investments.

We would also like to ensure that in reading this, if you are considering investments in SME businesses that you fully review the relevant pages on our website. In particular;

• https://www.clarion-invest.com/risk-warning

• https://www.clarion-invest.com/eligibility

We want to make investing in SME businesses a fun an exciting prospect for any investors considering broadening their portfolio into these areas, but more importantly we wish to ensure that any prospective client is doing so in full consideration of the risks and rewards associated with such.

We hope this information will be considered and taken gladly and hope that you appreciate our acting as transparently as possible in bringing this to your attention.