Agreed, thank you. But how can you say there is no confusion here? There is absolutely confusion.
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Anyway, CrowdCube have clarified the 5% carry applies in the email posted above so we really now just talking about how the shares are held.
Edit: agree Adam’s tweet slightly confuses it (he does specifically say a carry does not apply). But I think we need to focus on the CC email above which is in line with everything that’s been said. I would definitely expect the 5% to apply and invest on that basis.
It is possible that crowdcube support person was simply confused and wasn’t aware of the special structure of freetrade shareholdings - Adam’s tweet certainly contradicts it. Really it’d be better to wait for clarification from Freetrade.
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Fair point
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Very true 
I don’t have a clue so just waiting for confirmation. 
I think for the very reason that the 5% carry fee wasn’t really announced and just added unknown to most investors, and even unknown to Adam as maybe they were not fully made aware of the carry fees
To me it is not only the tweet. But it is the wording that Crowdcube use which is ambiguous as regardless of 1 April statement, Freetrade did open to investment before that date. In a legal document this would be defined to the n’th degree. I know: I have to sometimes look at wording of this kind in legal contracts.
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With all due respect it seems highly unlikely that FT would be unaware of the change in policy.
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I just realised it was also you that challenged me and downplayed this when I raised this previously on the thread below:
I really don’t think it’s clear at all. The crowdcube fee schedule states the following:
Do you read that as:
- only applies to profits made on investments
in businesses that opened to investmenton or after the 1st of April 2021. - only applies to profits made
on investmentsin businesses that opened to investment on or after the 1st of April 2021.
Adam is suggesting the later.
The crowdcube email conveniently changes that wording completely:
“The 5% carry will be charged on shares bought after April 2021”
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@gmcay exactly. This (2) is precisely my understanding and interpretation.
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Interestingly Crowdcube will be raising funds Q1 2022 will they be charging fees ? for there own raise?
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Adam does seem to be unaware of the carry fee, but being in his position it must be hard to be on top of everything and that’s perfectly acceptable.
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I suspect the customer service person wasn’t aware that we aren’t using the nominee structure, which is standard at Crowdcube now (it didn’t exist when we first raised in 2016).
He implied that Crowdcube would receive the proceeds of any share sale, which is not correct for direct shareholders.
We’re checking this with Crowdcube.
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Thanks Adam, appreciate the response to this.
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If I was crowdcube I’d want that 5% lol ,
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The response from Crowdcube says, “In the event of a sale or return being made to you”
I interpret that as, Crowdcube thinks if Freetrade is bought buy a company and they want Crowdcube to distribute the funds back to investors, or if an individual wants to sell their share through Cubex. So, If it passes through Crowdcube they will take 5%.
But if Freetrade IPO’s and shares go to a public exchange, or Freetrade adds our shares to its app to be traded, nothing to do with Crowdcube, and no involvement from them, so they cant claim anything.
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I’ve made my investment based on the 5% charged so Adam will only make my day if he confirms it’s not.
But to be honest, we all getting focused on 5%. Don’t forget the tax man is going to take 20-45% (for anything above the CG limit) without EIS protection. At least the 5% fee is tax deductible 
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If the 5% fee applies I certainly will not be taking up my allocation.
A fee like that should be so obviously clear and upfront.
The 1.5% fee was hard enough to take as it was…
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Not for non resident’s! 
We get to have our cake and eat it too. 
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