Before you commit to purchasing a Development Share Bond please note that The Midcounties Co-operative Limited (the ‘Society’) follows a Code of Practice and has to provide a statement to its members about the nature of their share holding investment and any change affecting it. The statement, which is set out below, applies equally to Development Share Bonds given that they are a part of the Society’s share capital.
As a member you are a shareholder of The Midcounties Co-operative Limited. If the Society is unable to meet its debts and other liabilities, you will lose the whole amount held in shares, hence it is known as risk capital. This may make it inappropriate as a place to invest savings.
The Financial Services Compensation Scheme, which applies to bank and building society accounts and to some investments, does not apply to your share account or to Development Share Bonds. The Society, unlike banks and building societies and investment firms, is not authorised and supervised by the Financial Services Authority (although it may be registered by it). Therefore you cannot claim compensation under this Scheme in the event of the Society not being able to pay out your share capital or Development Share Bond.
You may withdraw money from your share account at any time unless the board of directors have removed this facility under the Society’s rules. Interest is not payable for early withdrawal of Development Share Bonds.
Withdrawable share capital does not characterise an investment in the conventional sense. The withdrawable share capital held in your share account may receive interest but the shares do not increase in value. It is primarily for the purpose of supporting your Society rather than making an investment.
The Financial Ombudsman Service does not apply to your share account or your relationship with the Society but under the Society’s rules any dispute is to be submitted to an arbitrator agreed by the parties or in the absence of agreement to be nominated by the Chief Executive of Co-operatives UK Limited. The arbitrator’s decision will be binding and conclusive on all parties.
If you have any questions regarding the Code please address them to:
The Secretary - The Midcounties Co-operative,
Warwick Technology Park,