This document discusses regulations around community share issues and industrial and provident societies. It provides an overview of FSA regulation of share promotions and exemptions for high net worth individuals. It defines an industrial and provident society as a corporate body with limited liability that is either a bona fide co-operative or community benefit society. The document also outlines the process for forming an industrial and provident society and preparing an accurate prospectus for a community share issue.

1. Community Share Issue
Malcolm Lynch
Partner/Head of Charity and Social
Economy
Wrigleys Solicitors LLP
www.wrigleys.co.uk
Tel: 0113 244 6100

2. Wrigleys
25 years experience of community share
and bond issues

3. Regulation of Share Issues
FSA regulation of promotion of
investments
approval by authorised person
exemption:
high net worth individuals and
sophisticated investors
overseas investors
industrial and provident societies
prospectus and exemption

4. What is an industrial and
provident society?
corporate body with limited liability
bona fide co-operative or community
benefit society (Bencom)
registered with the FSA and not Companies
House
democracy: one member, one vote
£20,000 cap on withdrawable shares
no cap on transferable shares

5. How to get started?
formation and registration of IPS
preparing a prospectus:
project vision and synopsis
Board CVs
risks to investors and directors
financial projections
disclaimers
ensuring that a prospectus is accurate
and not misleading

6. Community Share Issue
Malcolm Lynch
Partner/Head of Charity and Social
Economy
Wrigleys Solicitors LLP
www.wrigleys.co.uk
Tel: 0113 244 6100