The sale of community shares is not regulated by the Financial Conduct Authority because investors are deemed to be investing for social returns, not financial gain. This is good news for community ventures, which would otherwise face prohibitively expensive regulations when marketing community shares. However, it comes at a cost to community investors who have no right of complaint to the Financial Ombudsman Service and cannot apply to the Financial Services Compensation Scheme.

Community shares are more risky than keeping your money in a savings account with a bank or building society, where currently the first £50,000 is fully protected. You can lose everything you invest in a community shares offer. This is why it is important to look carefully at a community share offer before deciding to invest. More information on the risks is explained in the Share Offer Document. It is important that you read all Share offer Document fully before deciding whether to invest or not.

We would advise you to take appropriate independent financial and other advice