Our very first £100,000 bond issuance has just matured and, in doing so, proved that the bonds are a useful and successful product.
However, we’re conscious you may wonder what would happen if circumstances changed for either you or us.
If your circumstances change and you need access to your money, you can always sell your bonds to us at any time. You will receive all your money back without delay, and the interest you’ve already been paid won’t be affected.
If, for any reason, Dozens should no longer be able to continue trading, we understand you'd be concerned about getting back the money you invested and your interest, so we’ve explained the process below for your peace of mind.
Dozens bonds are not FCA regulated products and FSCS protection does not cover the bonds. Instead we have safeguards built into our business and product design that ensure all customers would get their interest and principal sums back from our bonds in the event of any default on our part. There are two main safeguards:
1. Dozens isn’t just an e-money licenced firm, it’s also an investment licenced firm – this is what allows us to offer our investment products. The combination of these licences means we have a lot of requirements and supervision placed on us by the Financial Conduct Authority (FCA).
One of these requirements is that we have an early warning indicator system in place (which relates to holding-back a certain amount of our own resources). This ensures that any closure of the business would be done in a controlled way that would enable all customers to get their money back (or unwind investments/transfer investments to other managers).
What this means in practice is that we couldn’t (and wouldn’t) just disappear overnight, or have a block placed on our customers’ money and keep you in the dark. Instead, we would be required to put into action a pre-prepared “wind-down plan”, which is the process of how we get our customer’s money back to them.
2. When it comes to our bonds, a trustee (US Bank) has been appointed to protect the bondholders’ (our customers’) money. When you purchase bonds, the money you pay for them is transferred to US Bank for safekeeping. Project Imagine (the parent company of Dozens) then adds the 5% interest to that amount, and US Bank’s function is to look after all of that money on behalf of customers. Dozens can’t access any of the customer money in the trustee-controlled account, so it really does just stay there until your bonds have matured or an interest payment is due to be paid to you and it’s given back.
During a wind-down period, we would liaise with US Bank to ensure that each customer receives their full principal back and, as applicable, any remaining interest payments payable from their Dozens bonds.
You can always find the full terms and conditions of the 5% p.a listed Fixed Interest Bonds, as well as an extremely detailed Annex, here.