May 25, 2018 Comments (0) Blog, Current Investigations

FS Energy & Power Fund – Secondary Market Sales

FS Energy & Power Fund
(Last Updated On: May 25, 2018)

Concerned about your Investment Losses in FS Energy & Power Fund?

Have you suffered losses investing in FS Energy & Power Fund? If so, the securities attorneys at 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.”

FS Energy & Power Fund is an investment sponsored by FS Investments. The company gives investors access to alternative asset classes, strategies and asset managers that typically have been available to only the largest institutional investors, according to its website.

According to Central Trade & Transfer, a secondary market website, shares of FS Energy & Power Fund are listed for just $5.70 per share. Unfortunately for many investors, it appears that the secondary market price would represent a significant loss on their initial capital investment. The original offering price was $10.00/share.

The Trouble with BDCs

The trouble with Business Development Companies (BDCs), like FS Energy & Power Fund, 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.

Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.

Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.

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.

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 FS Investment, 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.

 

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