Crowd2Fund has two core plans in the event of a wind down. This plan consists of a hard wind down and a soft wind down.
The soft wind down is a situation where Crowd2Fund decides to wind down the company. This means that the operation of the business would lie with Crowd2Fund. This would mean:
The hard wind down would be a scenario in which Crowd2Fund has to wind down due to external factors. This would mean:
In both wind down plans Crowd2Fund would use its capital reserve (held separately) to ensure that no matter which plan is initiated, the wind down is orderly. Additionally, it is important to remember that all loan contracts are between our investors and our borrowers, so if Crowd2Fund ceased to trade, the contracts would still be valid.
Should the wind down require the assistance of a third party, our living will partner EQ would take over and manage all operations, including but not limited to ISA transfers, repayments, collections, and the run off of the portfolio.
EQ are authorised by the FCA and hold the same permissions as Crowd2Fund.
In the event of failure, it is possible that the loans may cease to be managed before they mature. Anyone involved in the continued management and administration of the loan book (such as administrators) may not be subject to the same regulatory requirements as the firm and therefore there is a possibility that regulatory protections may be reduced or no longer available. Additionally, investors are entitled to their money held in the client account however any money outstanding would not be obtainable until received by the firm (or the living will partner) and returned to investors.
Investors will be informed via email should Crowd2Fund enter a wind down scenario.
Past performance and forecasts are not reliable indicators of future results. Your capital invested is not covered for compensation in the event of a loss by the FSCS. Tax treatment will depend on the individual circumstances and may be subject to change. Please see our Risk section before making an investment decision.