When a RE developer has a project in which community investment is sought, an approach will be made to the directors of REIC. The developer must provide a business plan to the board who will evaluate the proposal. If they decide the proposal is robust REIC will provide the developer with a standard share offer document template which the developer would need to complete. A date would be set for a presentation by REIC and the development company followed by the distribution of the share offer document to members of REIC. The members of REIC, if they so wished, would have the opportunity to invest directly in the project offered by the developer. Potential investors would need to bear in mind that investment in new business carries high risks as well as the possibility of high rewards and they are strongly advised by REIC to seek advice from a person authorised under the Financial Services & Markets Act 2000 who specialises in investments of this kind.

It is important to note that members of REIC make an independent decision on the investment opportunity. Members can either invest as an individual or pool resources and make a joint investment.

Company Profiles

Corporate Members of the Club which seek to publish information concerning an investment are known as a Published Relevant Firm under the Articles of Association of the Club.

Published Relevant Firms will be asked to make a contribution to the Club to help provide the Club's services. The Club is non profit making and does not make any profit by such activities.

Published Relevant Firms, their Directors and named advisors are responsible for the information which is made available to members of the Club.

Such information is likely to constitute a Financial Promotion under the Financial Services and Markets Act 2000.

Published Relevant Firms and their advisors should ensure that in providing this information to the Club and members of the Club that they have relevant approvals or exemptions under the Financial Services and Markets Act 2000.

It is not the responsibility of the Club to check whether the information which is provided to it is fair, clear and not misleading or whether the Published Relevant Firm has the relevant approvals or exemptions.

There may be a number of relevant exemptions which may be applicable for Published Relevant Firms in respect of certain types of Financial Promotions issued by certain types of organisations.

Certain one-off written Financial Promotions may also fall within the exemption provided that it is not part of a marketing campaign by a Published Relevant Firm.

For further information:

Click here for the Community RE Handbook written by the solicitor Malcolm Lynch of Wrigleys

Click here for the project outline for community groups or developers seeking investment