Smart Crowd Limited (SmartCrowd) is fully regulated by the Dubai Financial Services Authority (DFSA).
RISK WARNING: Investments in property and unlisted shares carry a risk. Your capital may be at risk and you may not receive the anticipated returns. Using credit or borrowed monies to invest on SmartCrowd carries a greater risk as even if your investment declines in value or is not repaid, you will still need to meet your repayment obligations.
Investment Risk Warnings
Variable IncomeWhilst Smart Crowd provides gross rental income estimates based on information from third parties, these are not guaranteed. It may be that lower rents are secured. Furthermore, rental income could cease completely for certain periods. In the event of a tenant failing to meet its obligations to the owner of the property, investors will experience a fall in the cash receipts and cash available for distribution to them. From time to time, vacancies can be expected to arise in the operation of real estate assets. In some cases, sizable vacancies may mean there is less cash available for distribution to investors.
- Investment in real estate is speculative, the market value of property can fall and rental income is not guaranteed;
- Forecasts and past performance are not a reliable indicator of future performance.
- The real estate market can experience downturn effecting your property valuation
Ownership in non-tradable sharesInvestors will not own the property; rather the investor will have an interest in another legal entity that owns the property. As the investor’s interest in that entity is not listed or traded, it is likely to be an ‘illiquid’ investment; that is, it may be difficult to sell the interest because of a lack of investors willing to buy such an interest. So the investor must be prepared to commit to investing for the full investment period.
LiquidityAs real estate is an ‘illiquid asset’; that is, an asset that cannot always be easily sold, it may be difficult to sell the property at the end of the investment period, resulting in a delay in investors receiving their capital or in the property being sold at a loss. Once the secondary market is operational, you will be able to advertise your investment for sale to other Smart Crowd users at any point. However, there may not be anyone willing to buy your investment at a price that you deem reasonable (or buy it at all). In that event you will be required to wait until the end of the investment term for an exit. Even at this point, the timing and ability to exit will depend on completion of a transaction to sell the underlying property. This transaction could take several months.
Smart Crowd does not provide any investment advice and no assessment is made to determine if an investment is suitable for investors. All information is provided to help you make your own informed decisions. You must rely on your own due diligence before investing, if in doubt, please seek the advice of an independent financial adviser.
Client Money is held by Smart Crowd in a segregated Client Account with Emirates NBD. Whilst ENBD is accountable to Smart Crowd for the safe keeping of its Client Money, ENBD does not have a relationship with Smart Crowds clients directly. Therefore, Smart Crowd is wholly accountable for our investors “Client Money”. Smart Crowd has undertaken due diligence on ENBD deemed fit and proper to hold Client Money on Smart Crowds behalf.
Clients of SmartCrowd are subject to the protection conferred by the DFSA’s Client Money Provisions and therefore:
this Money will be held separate from Money belonging to SmartCrowd; and in the event of the Authorised Firm’s insolvency, winding up or other Distribution Event stipulated by the DFSA, the Client’s Money will be subject to the DFSA’s Client Money Distribution Rules.
Funds are not held on a separate designated client deposit account, therefore interest earned will not be accounted to client
As noted above Client Money will be held in the UAE, outside the DIFC and the market practices, insolvency and legal regime applicable in that jurisdiction may differ from the regime applicable in the DIFC.