Disclosure Document

Disclosures required under Guernsey Financial Services Commission’s Conduct of Business Rules and other Laws.

 

Disclosures pertinent to all Clients

RAW Capital Partners Limited was incorporated in September 2012 and has been licensed by the Guernsey Financial Services Commission under the Protection of Investors Law since January 2013. It is licensed for the regulated activities of promotion, subscription, management, dealing and advising for category 1 and 2 investments.

RAW Wealth Management Limited was incorporated in October 2017 and has been licensed by the Guernsey Financial Services Commission under the Protection of Investors Law since January 2018. It is licensed for the regulated activities of promotion, subscription, management, dealing and advising for category 1 and 2 investments.

RAW Capital Partners Limited and RAW Wealth Management Limited (Together the “Managers”)

 

Financial Advice

The Managers do not provide financial advice to Retail Investors as defined in the Licensees (Conduct of Business) Rules (2014).

 

Data Protection

The Managers will share client data with other group companies and third-party contractors as required for those parties to perform their duties. We do not share data with external marketing companies or organisations. See detailed Privacy Statement.

 

Stock Lending

The Managers will not enter into any stock lending arrangements on the Clients assets without their express prior consent.

 

Investment Risks

Investments can go down as well as up. Even in a rising market there will always be short term volatility which means that if the portfolio needs to be realised there is no guarantee that the Client will get back all the money invested. No guarantee of investment performance or income generation is given. Past performance is no guarantee of future performance. Some of The Managers ‘investment programs are systematically managed. The algorithms for such programs have been tested against historic data but there is guarantee that the same results would be generated in similar market conditions in the future.

Certain investment programs we run, may have very high levels of concentration risk increasing the overall risk of capital loss to the Account.

The Private Opportunities investment program invests in early stage private equity investments and may have very high levels of concentration risk increasing the overall risk of capital loss to the Client as well as being very illiquid. Private equity investments have the potential to lose 100% of their value.

 

The Managers seek to mitigate investment risks by identifying opportunities with clear potential for success; and/or medium to longer term investment opportunities and holding those investments for longer periods with lower turnover in the portfolio than some other managers. The Managers also undertake limited diligence on prospect company before investing.

 

Execution Risk, Best Execution and Aggregated orders

There is a risk that the Managers or its brokers may not be able to execute a desired trade at or close to the expected price which could negatively impact the value of the Account. The Managers try to avoid placing trades when there is likely to be limited liquidity in the investments beings traded. The Managers typically place deals with a broker for execution on the opening or closing of the market.  Should the Managers decide, they may place orders at other times of the day with or without limit orders to the broker.

The timing of placing trades can have a significant impact on the returns of the Account. This can be particularly so during times of higher volatility in the markets.

The Managers monitor the performance of brokers in placing trades. Prior to placing an aggregated order, the Manager will inform the broker of all Accounts participating in such order, and the number of contracts each Account is to receive. The Manager will use the allocation procedures of the clearing broker for any aggregated order resulting in a split or partial fill.

Best execution is achieved by using a single broker. The Managers do not receive any research, retrocessions or similar from the broker.

 

Currency Risk

Subject to the Clients investment restrictions, the Managers may invest in assets denominated in a currency other than the valuation currency of the Account. This would give rise to currency exposure through the movement of foreign exchange rates. The Managers may or may not choose to hedge such currency positions in part or in whole.

The Managers may also actively take currency positions through the use of foreign exchange contracts, currency forwards or other derivatives. Any currency exposure could have a negative impact on the Account value in the valuation currency if currency rates change regardless of the performance of underlying investments. Where the Managers consider there may be a significant currency risk to the Account it may consider using hedging techniques to mitigate such risks.

 

Suitability

Because of the investment risks outlined above, some investments may only be considered appropriate for Professional Investors or Eligible Counterparties.

In determining the suitability of an investment(s) for a client, the Managers will rely on the completeness and accuracy of information provided by the Client.

 

Technology Risks and Business Continuity

The Managers are reliant on access to data feeds, market information and the internet to operate normally. Disruption to communications may cause delays in trading which may impact the price at which investments are bought or sold. The Managers have various contingencies in place to mitigate such risks but it is impossible to eliminate all such risks. The investment industry is seeing an increasing incidence of cyber-attacks on business. It is possible that such an attack on the Managers could disrupt our ability to manage the Account and place trades in the way we would otherwise have wished.

The Managers seek to mitigate the technology risks through the outsourcing of its IT requirements to a specialist company that implements industry standard firewalls, virus protection and data back-up.

 

Fraud Risk

The Managers and / or the Broker or other counterparties may be the subject of attempted fraud. Such fraud could potentially occur against the Account or the Managers or other service provider impacting on the ability of that company to operate or even remain solvent.

The Managers have financial controls in place to help prevent fraud which include having a limited number of authorised signatories to its accounts and every transaction requiring two authorised signatories to be approved. The Managers have also outsourced financial accounting to a specialist firm of accountants which helps to provide additional independent oversight of its financial records. The accounts of the Managers are audited each year.

 

Conflicts of Interest

From time to time it is possible that one or both parties to an agreement may be in a conflicted position. The Manager’s policy on dealing with conflicts of interest is “that the Company and staff must seek to avoid or manage conflicts of interest. Where a conflict arises, staff should ensure fair treatment to all its Clients by disclosure, internal rules of confidentiality, declining to act, or otherwise. Staff should not unfairly place its interests above those of its Clients and, where a properly informed Client would reasonably expect that the firm would place his interests above its own, the Company should live up to that expectation.”

 

Client Monies

Client Monies will be held in a designated client account when not invested.  Clients will not receive interest on any balance held in the client account.

Where client transactions on the client account result in an amount of £20 or less remaining on the client account, for example after the purchase of shares, this amount (or higher if relevant bank charges would negate the benefit) will not be returned to the client and will be for the benefit of The Managers.

Where funds are being returned to a client, they will only be returned to an account in the name of the client. No third-party payments will be made.

 

Collection of Fees

Fees will be calculated in accordance with the client agreement which will normally be collected from the Account within 2 weeks of the due date. Where fees are denominated in a currency different to the currency of cash held the Account, the Account will bear any foreign exchange risk.

 

Complaints Procedure

Client complaints should be made in writing and sent by email to info@rawcapitalpartners.com. All complaints should include the Client name and Account number. All Client complaints will be referred to the Compliance Officer and Clients should receive an initial response within 2 working days.

 

Definitions

Account – the Account maintained by the Managers for the Client.

Client – a person entering in to an agreement with the Managers

Eligible Counterparties - any entity licensed for Dealing, Managing or Advising under POI Law; a bank, insurance company or collective investment scheme; a pension scheme or its management company; other similar entity.

Professional Investors – a person who - regularly invests in collective investment schemes, company shares or other private investments of such size that they can reasonably be expected to understand the risks involved of such transactions; provides a certificate from a financial advisor indicating that he has obtained independent financial advice; has been a non-clerical employee of a professional investor firm for more than 3 years.

Retail Investors - a client who is not a Professional Client or an Eligible Counterparty.

Terms – Terms and Conditions outlined for example in a term sheet or other agreement.

January 2018

 

 

 

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