A security trustee is a service that can be offered by an FCA Authorised firm, although the activity is not regulated by the FCA. Many debt investments, especially mini bond and loan note issues have a need for a firm to act as a security trustee. A security trustee is an independent entity that sits between the bond holders, (the investors) and the bond issuer, (the borrower). The security trustee’s primary responsibility is that of acting impartially, but representing the interests of the bond holders, especially if a bond issuer fails to meet an interest (coupon) payment.
The UK’s FCA, like much of the rest of the world, is seeking to enable an ecosystem that provides positive economic benefits without excessive risks of fraud. Most regulators have determined ICOs are securities and thus must abide by local and international disclosure requirements.
The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) are government- backed schemes offering great tax efficient benefits to investors in return for investment in qualifying start-up companies seeking early stage equity investment. . Read more