Investment protection



  • Is there any form of financial protection with FI. I have seen that portfolios can be as much as £400k. I don't mean protection against bad investment decisions, I mean similar to bank balance insurance?



  • I don't know of any but I'd be very interested if there was. I'm not sure if there are any insurance providers that would cover in the event of FI failure. Does anyone know of possible insurers that might offer a product to cover against platforms such as betfair or something along these lines?



  • FI is regulated by the gambling commission so I would imagine the funds are protected in the same way as with the bookies. There'll be a ring fenced client account at the very least I would have thought



  • @Pierrey2129 Hi I have found the information since my post. The deposits are held in a separate account from the general trading monies for the business. There are three levels of protection and FI are Medium. It falls short of guaranteeing your balance if the worst happens but I think most of the major betting companies are registered as Medium protection. My only worry is that I don't tend to leave large amounts in my betting accounts but FI is a format that means you will leave it there for long periods. I am probably being over cautious but my nature is to over research.



  • @NewUser56900 Thanks for sharing your research, this is good to know. I didn't realise that most bookies don't protect against the company's insolvency tbh but then again I used to bet with 365, Betfair and Paddy exclusively so I guess I never really saw it as a risk. The medium protection sounds like protection against the misuse of funds i.e. held separately from the companies funds, can't be invested / earn interest, possibly held by a third party with costs suffered by the vendor.

    To be completely frank. This is a high risk game and your capital is exposed much more than it would be with a bank or traditional trading platform. But with great risk comes the potential for great reward. Put it this way - the highest yielding 3yr treasury bond at the minute yields 28% p.a (Turkey). That product guarantees a return of 28% each year with your capital returned at the end, assuming they haven't defaulted. Compare that to the UK equivalent which offers 0.75% p.a and you can see the difference in each products risk profile.

    Since I rejoined at Xmas 2017 the index has grown by 150%+ with a lot of that growth being in the last month. I would rather hold my moneu in here than in Turkey so as risk vs reward goes I'd say FI is way ahead of the curve.

    Don't invest money you can't afford to lose entirely would be my advice. And don't invest short term thinking you'll need the cash in a months time, because you might be looking to withdraw just as there is a blip in the market.

    This happened to me when Barca got knocked out by Roma last year. I got caught with a large amount invested in premium players and they all took a tumble just as I was looking to divest. It wasn't pretty and as a result I've reduced my investment to a more comfortable level.



  • Is there anyway to know how the company are doing? And why are they not protecting our funds fully? It is just making people more hesitant to investing



  • I believe they are a ltd company so companies House for previous years accounts. How much this shows I believe depends on the size of the company and filing requirements but it's been a long time since I used companies house.



  • @KingZ there is never a 100% protection. If you keep it at a bank and the bank closes and the government cannot help because he has a lot of debt then you loose everything. FI is a very healthy company! So I wouldnt worry it. And btw: you always need to trust someone. Its the case on the road, and at home with your wife etc.....



  • @NewUser38991

    The FSCS guarantees the first £85k you have with each bank.

    Plus as we saw in 2008, the Government is highly unlikely to let any major bank go bust anyway.



  • @ocs123 we have seen in greece and cyprus what can happen....



  • @NewUser38991 In case of Greece there was a bail out. Dont get confused!



  • Seems to me that FI themselves should negotiate an insurance package with an insurer that could then be offered for sale to investors like me. If they did it, it would be much more cost effective.



  • @NewUser90157 said in Investment protection:

    I believe they are a ltd company so companies House for previous years accounts. How much this shows I believe depends on the size of the company and filing requirements but it's been a long time since I used companies house.

    Registered in Jersey

    "Football INDEX is provided by BetIndex Ltd which is licensed by Jersey Gambling Commission and by UK Gambling Commission, remote Operator License Number: 000-043061-R-322161-006"



  • @Dave-C
    Because they are registered in jersey there's no financial information about them in the public domain



  • @NewUser38991

    What on earth has Greece and Cypress got to do with it?



  • @ocs123 i just pointed out that UK bank accounts are also not 100% secure/protected. The UK government has a lot of debt too. And the FSCS is backed by the UK government. If the government cannot fulfill this protection , than problems could arise like in Cyprus.... i dont say thats very likely but nothing is 100 % secure/protected. Risk is everywhere....



  • @NewUser156205

    There is some financial info on Seedrs but it's not current

    https://www.seedrs.com/football-index/sections/idea



  • @Dave-C
    That's an interesting insight into the business model. I am sure that the business will be profitable and financiaĺly sound. Don't think they are helping investors to feel safe though by not publishing financial results



  • @NewUser156205 said in Investment protection:

    @Dave-C
    That's an interesting insight into the business model. I am sure that the business will be profitable and financiaĺly sound. Don't think they are helping investors to feel safe though by not publishing financial results

    Assume FI is located in Jersey primarily for tax reasons (all the betting companies are off shore nowadays to the extent possible). As a consequence FI doesn't need to publish its accounts but I don't think that's why they've gone off shore


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