Is Abundance regulated?
Yes, Abundance is authorised and regulated by the Financial Conduct Authority (525432).
What is an IRR?
IRR stands for Internal Rate of Return. It is the best way of describing the returns from an investment like a Debenture, which often pays back some of your capital over the life of the investment, and may also be paying out different amounts of income over time. You can find out more about why we use IRR here.
Who can invest on Abundance?
Anyone over the age of 18 and who is a resident of the UK, the EEA (European Economic Area) or Switzerland can invest with us. US citizens cannot invest on Abundance. See the Abundance Terms and Conditions for a full description of eligibility requirements.
What are the fees on Abundance?
You have no fees to pay directly to Abundance if you are based in the UK.
We charge each project raising money on Abundance two fees — one for raising the money and one for managing the investment and investors on a yearly basis. All estimated returns on the website are quoted after these fees have been paid by the project.
If you are a non-UK resident, there may be a charge for making a withdrawal from your account. See Investing from outside of the UK for details.
Can I sell my investment?
Our Debentures are tradeable. If you need to sell your Debentures we operate a free Bulletin Board service to help you find a buyer. You put your investments up for sale, wait for offers and then choose which you would like to accept. Your investments can only be sold if you find a buyer. For more details visit Selling Debentures.
Is there a chance I could lose my money?
Yes, as with any investment, your money is at risk. You can find out more about the risks of investing with Abundance here, and read the Offer Document to find out the specific risks for each project.
Can I invest through a SIPP?
Yes you can invest in a SIPP through our dedicated Abundance Pension, or there are other SIPP providers that will accept our Debentures. Find out more about the Abundance Pension
Can I put Abundance investments in an ISA?
Yes, you can set up an Abundance ISA, which allows you to hold our investments in an Innovative Finance ISA (IF ISA). Find out more about the Abundance ISA.
Is Abundance covered by the Financial Services Compensation Scheme (FSCS)?
Any cash in your Abundance account that has not been invested into projects is held in a segregated client account at HSBC PLC and covered by the FSCS Deposit Protection Scheme. This means if you have cash in your ISA or other Abundance portfolios that you have not yet invested in projects you benefit from FSCS protection up to £75,000.
Please note, the FSCS Deposit Protection scheme covers you for £75,000 per financial institution, so in this case it covers any uninvested cash held in your Abundance account as well as any other money you hold elsewhere in HSBC or any of its subsidiaries.
Once your money is invested into Debentures you are covered under the Financial Services Compensation Scheme (FSCS) on investments. This scheme is different to the FSCS Deposit Protection Scheme described above. Under the FSCS investment scheme investors can claim up to £50,000 of compensation in the case where Abundance goes out of business and Abundance is proven to have have been negligent in carrying out our role.
What are Early Bird and Pledge Bonuses?
In the past, Abundance has offered a yearly bonus to investors who invested early in a project and for those who pledged support before the project launched. These bonuses may not be available on new projects but the Early Bird Bonus (not the Pledge Bonus) is attached to an individual’s investment. Therefore if you buy an investment on the Bulletin Board with an Early Bird Bonus attached, you will receive this bonus for the life of the investment.