Investment risks

As with any investment, there are risks. The offer document will cover the risks for individual investments, but it is also important you understand the following general risks.

Your personal decision to invest

Triodos Bank does not provide financial, investment or tax advice to investors. It is your responsibility to decide whether to make a specific investment or not, including carrying out relevant background research and we do not take any responsibility for the consequences of your decision. If you do not understand anything regarding an investment, you should seek independent financial advice from someone authorised under the Financial Services and Markets Act 2000. We recommend that you take tax advice on any investments that you make through this crowdfunding platform.

Your capital at risk

Unlike deposits, the bonds and shares available on this crowdfunding platform are investments directly into a social or environmental business so your capital is at risk and you could lose some or all of your money.

No access to the Financial Services Compensation Scheme

You will not be able to claim against any compensation scheme (including the Dutch schemes mentioned below) if the investments you make through this crowdfunding platform do not perform, meaning they do not make payments or repayments in line with your expectations. Triodos Bank NV is based in the Netherlands and as such, for some of our products and services our UK investors are covered by the Dutch Deposit Guarantee System or the Dutch Investor Compensation Scheme, rather than being covered by the Financial Services Compensation Scheme in the UK. Before it is invested or once the proceeds of investments are returned, your money will be held by our custodian Mangopay S.A. in a client account and subject to separate protections applicable to credit institutions and banks.

Returns not guaranteed

Payment of interest on bonds or dividends on shares is dependent on the success of the business model of the company that is issuing the bonds or shares. Therefore the returns are not guaranteed and you may not get back the full amount invested.

Lack of liquidity

Although the bonds and shares offered on this platform are transferable, they are not listed on a recognised investment exchange. This means there is no established mechanism for an investor wishing to sell their investment to find a buyer, or any guarantee of the price the buyer might be willing to pay. It could be difficult to sell the investments at a reasonable price and, in some circumstances, it may be difficult to sell them at any price.

Need for diversification

Diversification by spreading your money across different types of investments should reduce your overall risk. Investors should only invest a proportion of their available investment funds via the platform due to the high risks involved.

Differing risk profiles

Share offers and bond offers contain different and specific risk factors, which you should consider in full by reading the offer document for that particular investment. These risks relate specifically to the type of investment product and the individual company you are investing in.

Past performance

Past performance is not a reliable indicator of future performance. You should not rely on any past performance as a guarantee of future investment performance.