We're all enjoying making money at the moment in this soaring market, myself included. We want this to continue, but most of us who've been trading for 5 months or more, know that a flat/bear market will arrive eventually.
This is a wonderful product with unrivalled returns compared to the risks. But how long can it last? Critics of FI believe this is a glorified pyramid or ponzi scheme, where those who join first, make the most money and there's a constant need to recruit more members to avoid collapse. I'm not sure FI is one of those.
However, there's a little red flag. They've chosen to register the company in Jersey, where financial transparency obligations and regulations are light. It's well known that many dodgy companies have chosen Jersey to register their business. That in itself, means nothing in regard to FI.
It is very difficult to obtain financial information about a company in Jersey. I've been researching in the past week on how to obtain the latest Annual Accounts for FI. I went to the Jersey Financial Services Commission (JFSC) https://www.jerseyfsc.org/
and all they had was an Annual Return, a C20 form giving the number of shares there is in the company , its address and members: Fame Ventures Ltd (who are hosting the coming London Meet). You can buy an original hand written version or computer printout of the form for a small fee. The registry of JFSC holds the computer version. That's it. No Annual Accounts/Annual Report and Accounts/Annual Statement of Accounts. No Credit Report.
The European Business Register (EBR) http://www.ebr.org/index.php/information-distributors/
is a database that holds the financial data and position/credit reports of companies based in 25 European companies. Only two companies are registered to have access to the EBR for the UK: KYCKR and kompany. A fee is payable for the documents they hold.
KYCKR: Only hold the C20 company registration form! No Annual Accounts/credit report.
kompany: Only hold a "Registry Check". The same useless information on the C20 form!
Conclusion: If the critics are correct, and this is a pyramid scheme, then if a time comes and the company is about to collapse, we have no warning of this because no one except the directors are privy to the financial position of FI. If a collapse occurs, IS will be suspended. Only the money in your account (balance) by law cannot be raided by FI. An Annual Accounts will give investors a true picture of the financial state of FI, its cash reserves, creditors, liabilities, debtors and the plan for the year ahead.
If FI want us and future investors to invest long-term with them, they have to provide us with a copy of their Annual Accounts, so that at least, we can make an informed decision.
I'll bring this up at the London Meet. That means the crap FI Beta site and GKs have to be shelved.