Downing Bonds are classified under FCA regulations as either Non-Readily Realisable Securities (NRRS) or Speculative Illiquid Securities (SIS), depending largely on the business issuing the bond.

• Speculative Illiquid Securities (SIS): If the business makes loans or investments or develops property outside of its own Group (i.e., there is an element of onward lending), it is likely to be classified as a SIS. In this case, only high-net-worth individuals or sophisticated investors are allowed to invest.
• Non-Readily Realisable Securities (NRRS): If the business is a normal trading business that does not make loans or investments or develop property outside of its own Group, the bond is likely to be classified as an NRRS. In this case, everyone can invest, although restricted investors are capped at 10% of their net investible assets.

The bonds offered on our platform are high-risk, illiquid, not listed on a regulated stock market, and are hard to value independently. All the bonds are transferable, but as there is no established secondary market, you should assume that you need to hold your bonds for the full term.

For further information about minibonds, visit the FCA’s website here: www.fca.org.uk/consumers/mini-bonds