Shared Ownership Financial Advice

Tender description

The regulatory and technical requirement to complete work on shared ownership projects is high. Community organisations have struggled to obtain competitive quotes even after engaging with the market. This PIN is intended to identify if there are suitably qualified financial advisors in the marketplace that can be engaged to support this work in the future. The aim of this PIN is to test the market for suitably qualified financial advisors, and we anticipate that this is likely to be a very niche market. This exercise is undertaken to allow us to understand how many suitably qualified advisors are in the market or are currently in the process of developing the required regulatory permissions and experience that can be procured by communities via PCS. The Energy Saving Trust leads the Local Energy Scotland consortium who manage the Scottish Government’s Community and Renewable Energy Scheme (CARES). The Scheme supports community organisations to invest in or benefit from commercial renewable energy developments. Further details can be found at https://www.localenergy.scot/. We are currently aware of over 30 fully consented wind farm projects that are offering shared ownership to communities, so there is a strong pipeline of opportunities for advisors. Advisors on these opportunities must meet the following regulatory and technical requirements. Regulatory requirements: The minimum Financial Conduct Authority (FCA) permissions required by an advisor for advising a community together with the relevant FCA Handbook rule references detailed below: - Regulatory permission - FCA Handbook rule - Agreeing to carry on a regulated activity - PERG 2.7.21G - Advising on investments with underlying permissions to allow advice to retail clients; and in investments comprising shares or units - PERG 2.7.14CG, 15G, 16G & 16-AG PERG 8.24G - Making arrangement with a view to transacting in investments - PERG 2.7.7AG (2), B, BA, BB, BC - Arranging (bringing about) deals in investments - PERG 2.7.7AG (1), B Technical experience: We would expect an advisor to have skills and experience including, inter alia, being able to: - understand the nature of the investment opportunity, in this case a renewable energy project and product (i.e. the investment type), and thus the specifics and nuances in developing and operating such an asset. - understand and be competent in undertaking and reviewing complex financial modelling. - understand, analyse, and advise on appropriate funding models and sources of leverage for the community investment. - understand the associated risks and corresponding mitigations to the investment opportunity. - understand, analyse, and calculate the potential costs and rewards for the investment opportunity. - understand the operational and regulatory requirements of the suggested pooled investment vehicle options (including other options as appropriate); and - communicate complex information effectively to a retail client audience, including a clear rationale for recommendations made (i.e. invest or not invest, most suitable investment vehicle, etc.). We would like to hear from suppliers who already have, or intend to develop, the required regulatory permissions and experience that can be procured by communities.