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What protections are there from the risks of investing?
What protections are there from the risks of investing?
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Written by Snowball Team
Updated over 3 months ago

Snowball Effect is a marketplace. Investors using our marketplace are responsible for assessing the risks of investing in each offer.

In addition to the assessment which each investor undertakes themselves, a number of other processes are in place to mitigate risk:

  • Snowball Effect facilitates investors obtaining clear and concise information to assist them to decide whether to purchase shares. Investors can also ask companies to clarify or provide additional information.

  • Snowball Effect uses secure payment systems. Your money is held in trust from the moment we receive it until it is transferred to the company upon the completion of an offer.

  • Investors have protections through company law and securities law in New Zealand. Investors may also have additional and enhanced protections through a shareholder agreement relating to each company they invest in. This agreement is provided as part of the full information suite prior to being able to transact.

  • Snowball Effect reduces the risk of fraud through checking, against publicly available information, the identity of the company and information provided by the company relating to the identity and character of its directors and senior managers.

  • Snowball Effect excludes any company from our services if we are not satisfied as to the identity of the company or of the company’s directors and senior managers, if we have reason to believe that any of the company’s directors or senior managers are not of good character, or if we have reason to believe that the company is not likely to comply with the obligations imposed on it under the service Snowball Effect provides.

  • Snowball Effect will exclude any company from our services that engages in conduct that is misleading or deceptive, or likely to mislead or deceive.

While risk can never be eliminated, Snowball Effect aims to be the best in the market at outlining risks to investors and helping to reduce risk where possible.

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