December 31, 2016 Comments (0) Blog, Current Investigations

FS Energy and Power Fund Latest News

Noble Royalty Access Fund GP
(Last Updated On: March 31, 2017)

Suffered losses investing in FS Energy & Power Fund?

Are you concerned about your investment losses in FS Energy & Power Fund? If so, The White Law Group may be able to help you recover your losses by filing a FINRA arbitration claim against the brokerage firm that sold you the investment.

FS Energy & Power Fund (FSEP) is a non-traded business development company (BDC) designed to provide investors a combination of income, growth and diversification by investing primarily in the debt and income-oriented securities of private U.S. energy and power companies.

FSEP is an investment offered by Franklin Square Capital Partners. According to their website, Franklin Square Capital Partners gives investors access to alternative asset classes, strategies and asset managers that typically have been available to only the largest institutional investors.

FS Energy & Power Fund closes public offering.

According to SEC Filings, FS Energy & Power Fund closed its public offering to new investors on November 17, 2016 and the final closing for any outstanding subscriptions that were accepted by the company was November 23, 2016.

On December 30, 2016, FS Energy & Power Fund increased the price that shares are issued under the distribution reinvestment plan to $7.70 per share from $7.51 per share.  The increase in price was determined by the board of trustees to ensure that shares were not issued at a price below the net asset value per share.

Trouble with Alternative Investments

The trouble with alternative investment products, like FS Energy & Power Fund and other similar BDCs, is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.

The White Law Group continues to investigate the liability that brokerage firms may have for improperly selling BDCs like FS Energy & Power Fund.

Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations to ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.

However, another problem with Reg D private placements is that the high sales commissions and due diligence fees the brokers earn for selling such products sometimes can provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments or to outright misrepresent the basic features of the products – usually focusing on the income potential and tax benefits while downplaying the risks.

Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes and if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.

Free Consultation

To determine whether you may be able to recover investment losses incurred as a result of your purchase of FS Energy & Power Fund or another Franklin Square BDC, please contact The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. The firm represents investors throughout the country in claims against their brokerage firm.

For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.