Important Information
Treating customers fairly.
Non-FSA Authorisation Status
Adavo is a value-driven, ethical property business. We endeavour to conduct our business to the highest standards and that means presenting our information in a fair, clear and not misleading fashion. The UK property market, other than sell and rent back transactions, is not a regulated market and as a property firm we are not authorised by the FSA. We are also not authorised from a general investment advice standpoint which is why the only products offered by Adavo are property investments.
We have taken considerable legal advice during the several iterations of our development and have sought high level advice in order to ensure we comply fully with FSA regulations. We intend to comply fully with all regulations at all times and we are committed to operating within the guidelines of the FSA.
Basis of Guarantee
The guarantee from Adavo is based on the business model, property assets and our integrity. The FSA states that a guarantee is only as good as the person or firm that offers it. Our guarantee is firstly secured by the business model. Two important points underpin our guarantee; what we can do with the money and where that money is held. Firstly, the asset is held by the portfolio builder investor. The property is purchased in accordance with the portfolio builder agreement which prevents your capital from being used for any other purpose other than buying a property and its related fees (RICS survey, legal searches etc). Secondly Adavo holds no money on account and only invoices fees set out in the portfolio builder agreement. These two points ensure that all invested capital is either in your bank or in a property.
There is also the integrity aspect of our guarantee. If we do not do what we say then the portfolio builder agreement is severable at the end of the project. We have unlimited liability on each and every project so it would be exceptional detrimental to our own personal finances if we depart from the stated terms and conditions. We do what we say and you have the security of total transparency at all times.
We wish to make it clear that, while investment via our joint ventures or portfolio builder investments are particularly well protected, no guarantee is ever 100% infallible.
Seek Independent Advice
We try to make sure that all the information we present is accurate. It is also a policy to suggest that any individual considering investing with Adavo does not commit more than 50% of their total available capital on the basis of prudence. In order that you come to a considered and suitable decision we strongly recommend seeking independent advice from competent professionals. For the legal validity of our portfolio builder agreement we recommend that you speak with an independent solicitor. We also recommend that you speak with an independent financial advisor regarding the suitability of our portfolio builder property investment for your circumstances and goals. We are more than happy to speak to, or meet with if you prefer, your advisors at any time.
FSCS and the Financial Ombudsman Scheme
Our joint ventures and property investments do not qualify for the Financial Services Compensation Scheme. Under this scheme the first £50,000 of qualifying investments are guaranteed to help protect consumers. Although our portfolio builder property investments do not qualify it is highly likely that a debt free property as an asset offers more protection in a real world sense than £50,000. Even if the property market dropped dramatically the asset alone would make up an 80%-90% guarantee of each project, with Adavo’s own guarantee legally obliged to make up any difference. The fact that property investments are not regulated also means that consumers will not benefit from the Financial Ombudsman Scheme when undertaking the portfolio builder property investment.
Holding Deposits
We do not accept deposits into Adavo Property as a matter of principle. No money is advanced at any point and any capital on account is held in the investors own name. This keeps it separated for accounting purposes with the benefit that in the event of insolvency of the partnership it cannot be use to pay creditors of Adavo. We recognize that we are not authorised to accept deposits and so use this simple structure to conduct our partnerships..
Due Diligence
We propose that potential customers conduct their own due diligence or if not sufficiently comfortable with this that they seek out an appropriate person, preferably an IFA, to perform this process for them. We are entirely transparent and are happy to submit to any checks requested by partners or property investors. Each partner and investor is offered the chance to involve themselves at each stage of the process to maintain an effective check and balance over the investment. This is not an obligation but is suggested as best practice/good order.