derek walker
TRANSCRIPT
Introducing Community SharesThe rise of direct, positive investment
communityshares.org.uk
What are community shares?
A form of withdrawable, non-transferable share capital unique to co-operative and community benefit society legislation.
Unique to co-operative
and community
benefit societies
Non-transferable,
nominalOne Member
One Vote
Exempt from regulation under the
FSMA 2000
Interest payment
only sufficient to
attract investment
Powered by Withdrawable Share Capital
Community shares successes
The value of community shares
Capita
l
“Community shares offers can provide long-term risk capital linked to the performance of the society”
Lev
erage
“Community share offers can lever further funding based on the ‘first move’ of the community”
Gov
ernance
“Community shares can give members meaningful involvement in the running of the society”
Op
eration
Community share offers can ‘bake in’ the customer base and promote member involvement in the operation of the enterprise”
The Limitations of Debt : The Importance of Equity
Equity is patient and engagedFlexible Risk sharing Seeks securityControlling and disengaged Debt is mechanistic
Debt
Equity
Source: Community Shares Directory, CSU
New registrations of co-operative and community benefit societies seeking to issue community shares (2004 – 2015 Q3)
2004 2008 2009 2010 2011 2012 2013 2014 2015
6 8
29
55
103 105
141
111
141
Community Shares Market: no. of registrations
Source: Community Shares Directory, CSU
Community share offers launched by co-operative and community benefit societies (2004 – 2015 Q3)
2004 2008 2009 2010 2011 2012 2013 2014 2015
5 7
1721
38
49
60 63
54
Community Shares Market: no. of share offers
Source: Community Shares Directory, CSU
Regional location of societies launching community share offers (2015 Q1-Q3)
London; 2North East; 1
North West; 9
Northern Ire-land; 1
Scotland; 5
South East; 10
South West; 16
Wales; 2
West Mid-lands, 6
Yorkshire; 2
Community Shares Market: by region
Source: Community Shares Directory, CSU
Broadband; 1
Community retail; 2
Energy and Envi-ronment; 36
Fair trade, 1
Food and Farming, 2
Pubs and Brewing; 4
Regeneration and Development, 3
Sports; 4
Transport; 1
Community Shares: by sector
Sector breakdown of societies launching community share offers (2015 Q1-Q3)
Key market indicators (2009-2015)
Over 600 new societies
registered Over 250 share offers launched
Est. £60m raised from over
50,000 membersAverage offer:
£250,000
Average membership 250 members
Average investment per member (based on Microgenius):
£510
Key pillars of a successful share offer
Business model
Viable
Profitable
Sustainable
Community
engagement
Scale and scope
Attracting support
Building membersh
ip
Governance
Legal form
Rules
Conduct
Offer document
Accurate
Informative
Share offer ‘campaign’
Guidance and compliance: The Handbook
Consolidation of all advice materials to form
Community Shares Handbook
Oversight from a technical committee of
government representatives and FCA
Collaboratively developed with
practitioners through an online platform
Regularly updated and monitored to ensure
relevancy and accuracy
Community Shares Standard Mark
The Standard Mark can be awarded by practitioners, who are licensed by CSU. Licensed practitioners are subject to the complaints
service, and can ultimately be de-licensed
by the CSU.
The Standard Mark is awarded to the
community share offer in recognition that the
society is complying with good practice.
Good practice is embodied in the Community Shares
Handbook.
The assessment includes the review of the:- Offer document- Application form- Governing document - Business plan
CSU maintains a public enquiry and complaints
service, with the ultimate sanction of removing the
Standard Mark from a share offer.
A voluntary scheme, supported by the FCA and
Money Advice Service.
