Frequently Asked Questions

WHAT IS A BOND?


A bond is a simple debt instrument, sometimes referred to as a fixed- interest security or a Speculative Illiquid Security. For this Offer, JH considers that it is appropriate for Sophisticated and High-Net Worth investors who have confirmed they understand the risks of the Bond. As the Borrower is making secured loans some of the risk is reduced, making it more appropriate for debt-based interest.




WHY IS THE TARGET RAISE £5 MILLION?


£5 million is the target amount set by the Issuer. Tranches will be released at the discretion of JH, in line with the requirements of the opportunities.




WHAT IS THE RELATIONSHIP BETWEEN THE ISSUER AND JOHN HOWARD?


The Issuer is owned by P1 Capital Partners. P1 Capital Partners originates, administers and monitors loans on behalf of subsidiary companies including the Issuer. When you register via the John Howard website, the registration is completed on the P1 Capital Partners site who will be hosting these investments




WHAT HAPPENS IF YOU RAISE MORE THAN THE FULL £5 MILLION?


The maximum amount cannot be exceeded because that would breach the terms of the Bond Agreement. JH may issue further bonds or take on secured third party lending in the future to take advantage of other opportunities.




CAN I INVEST THROUGH A SIPP?


It is possible to invest through SIPPs that allow non-standard assets, subject to approval by the SIPP trustees. Please contact JH for more details if you would like to invest through your SIPP, we will be happy to answer any queries you may have.




CAN I INVEST THROUGH AN INNOVATIVE FINANCE ISA?


It is possible to invest in this Bond through the P1CP Innovative Finance ISA (IFISA) by opening an IFISA through the JH / P1CP website. Please note you will only be able to make an investment through your IFISA once you have cleared funds in your IFISA.




WHAT HAPPENS AFTER THE MONEY IS RAISED?


You can log on to the website to see a record of your investments and review new offers as they become available.




WHO ARE SHAREIN?


ShareIn Limited are the company that P1 Capital Partners are working with to deliver their bonds. ShareIn are authorised and regulated by the UK Financial Conduct Authority (FRN 603332).




HOW DO I TRANSFER FUNDS TO?


When you invest or top up your wallet, funds should be transferred to ‘ShareIn Ltd’. ShareIn Ltd holds client monies in segregated accounts. ShareIn Limited (Firm Reference Number 603332) is authorised and regulated by the Financial Conduct Authority. The transfer details will be available at the time of investing.




WHAT DO I DO WHEN I AM READY TO INVEST?


1.Complete your profile by registering www.johnhowardbond.co.uk. This will include telling us what type of investor you are, and us checking that you have understood the risks. 2.Place your order for the Bonds 3.We will then complete the necessary ID checks (We might need to ask you for further information at this stage). 4.Make your payment to the Client Money Account Payments are accepted by bank transfer. As an investor you have a 14-day ‘cooling-off period’ from the date of your order, during which time you are able to withdraw your investment. When the tranche closing date is reached, we will complete the paperwork and security agreement with the Borrower on your behalf. This process normally takes up to a week and we will not transfer funds until we have the signed security agreement. Bond Certificates are then issued and this is when you could start to earn interest. You can download a digital copy of your Bond Certificate from your account by login in at www.johnhowardbond.co.uk.




HOW AM I CATEGORISED AS A "CLIENT" FOR REGULATORY PURPOSES?


In order to invest via this platform you must be categorised as a “client” for regulatory purposes. All investors are required to successfully complete the “Appropriateness Test”. All UK individual investors are treated as retail clients. All UK investors using this platform are eligible to file a complaint to the Financial Ombudsman Service. Investors may be able to claim compensation under the Financial Services Compensation Scheme in cases where they believe they have been mis-sold. However, there is no FSCS cover for investments into the products offered by Alpha Secured Investments. Different regulations apply in different regions and before being able to invest you will be asked to confirm that you meet the eligibility requirements in your particular region.




IS THERE TAX ON MY INVESTMENT?


Payments of interest will be made to you after deducting tax equivalent to the UK basic rate of Income Tax (currently 20%) which we pay to HM Revenues and Customs. The exception to this any John Howard Secured Bonds (“Bond”) that are held in an ISA, which means that any interest paid on the Bond would be tax free. Investors who wish to use some or all of their ISA allowance to invest in this Bond can open an IFISA at www.alpha-investments.co.uk and transfer funds into that account before investing. The annual allowance is currently £20,000 and you can also opt to transfer additional funds in from external ISAs from previous tax years. There is no limit on the amount of existing ISAs that can be transferred into your IF ISA. Bonds can also be held in some SIPP and SSAS wrappers, provided they accept non-standard assets (the Bonds are regulated but not listed, so are classed as non-standard assets). If you would like to invest through a SIPP or a SSAS wrapper, please contact the JH team and we will be happy to help with the approval and investment process. If this Bond is held by an individual or trust outside of an IFISA wrapper or in a SIPP or SSAS it will have income tax deducted at source, details of which will be available at the time interest is paid and annually. Investors are responsible for their own tax reporting. Please note, terms and conditions apply and tax treatment depends on the individual circumstances of each investor.




COULD I LOSE MORE THAN THE AMOUNT INVESTED?


You can lose all the money you invested but nothing more.




WHO CAN INVEST?


People resident in the United Kingdom who are either a “Certified High Net Worth Individual” or “Self-Certified Sophisticated Investor” (as these terms are defined in The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended)). You must not participate in the New Fundraise or make any other investments via the Company’s website if you do not meet any of these criteria and you must not complete the online registration process as an ‘INVESTOR’.




WILL PEOPLE BE ABLE TO SEE IF I INVESTED?


No. John Howard would like to keep their list of investors private.




I AM DOMICILED OUTSIDE OF THE UK AND EU, CAN I INVEST?


For a significant investment, we would be more than happy to enter into separate discussions as to whether we can accommodate this. It will be dependent on your particular circumstances and the regulatory framework in your country of residence. Please contact us at info@johnhowardbond.co.uk if this interests you.




DO YOU CHARGE FEES?


The Issuer (JH) do not charge bondholders any Fees. The Issuer lends money to developers/borrowers secured on a legal charge. JH (or associated entities) may be remunerated or receive a profit share from those borrowers. JH (or associated entities) do not receive fees from bondholders.




WHAT DO WE DO ABOUT CONFLICTS OF INTEREST?


JH will review any possible Conflicts of Interest that could harm investors and manage or eliminate these conflicts if and when they arise.




HOW DO I MAKE A COMPLAINT?


We want to give you superb customer service but sometimes things might go wrong. We can usually resolve most issues straightaway, so please email us on info@johnhowardbond.co.uk or call us on +44 20 3858 7175 to tell us how we can help. What you’ll need to tell us so that we can help you: – Your personal details,
– What’s gone wrong and
– What you want us to do to put things right. We’ll be in touch with you as soon as we can and let you know what will happen next. We’ll try to resolve your complaint within 3 working days of receipt – if we’re unable to do this we will write to you acknowledging that we have received your complaint and the next steps that will be taken. For more complex issues it’s likely that we will need longer to look into what’s happened and we may ask you for further information to help us reach a decision. We’ll give you regular updates. And once we’ve dealt with your complaint, we’ll go back and see what we can learn from your experience. If you’re unhappy with the outcome UK Residents can ask the Financial Ombudsman Service (FOS) to carry out an independent review of your complaint. In any event, you have the right to ask the FOS to review your complaint if we’ve been unable to resolve it within 8 weeks. The FOS can help UK residents with most complaints if you are: – A consumer
– A business employing fewer than 10 persons that has an annual turnover that doesn’t exceed €2 million
– If you are unsure whether the FOS will consider your complaint, please contact them directly for advice. The service the FOS provides is free and impartial and contacting them at any stage of your complaint will not affect your legal rights. The contact details for the FOS are: The Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London
E14 9SR Their phone numbers are +44 (0)300 123 9123 or +44 (0)800 023 4567. You can send an email to: complaint.info@financial-ombudsman.org.uk




WHAT TAX IS PAID ON BOND INTEREST PAYMENTS?


Payments of interest to individual investors will be made after deducting tax equivalent to the UK basic rate of Income Tax (currently 20%) which we pay to HM Revenue & Customs. The exception to this requirement is where interest is paid to investors who hold bonds within an IFISA, in which case interest can be paid without deduction of tax. However it remains your responsibility to declare any interest paid and account for any additional tax that may be due to the appropriate tax authorities.




IS MY INVESTMENT SECURED?


Secured lending on property is not risk-free. There is a risk that if the underlying borrower defaults, or if there is a delay in realising the asset, then the security may not be sold for enough to cover the loan or may result in delayed repayment of investors’ money.