Concerned about your FS Energy & Power Fund Losses?
Have you suffered losses investing in FS Energy & Power Fund at the recommendation of your financial advisor? If so, the securities attorneys at The White Law Group may be able to help you to recover your FS Energy & Power Fund losses through FINRA arbitration.
FS Energy & Power Fund (FSEP) is a publicly registered, non-traded business development company sponsored by FS Investments, according to its website. FSEP focuses primarily on investing in the debt and income-oriented equity securities of privately held U.S. companies in the energy and power industry. FSEP’s investment objectives are to generate current income and long-term capital appreciation.
Business Development Companies, such as FSEP provide debt financing for small- and medium-sized business that aren’t covered by a traditional rating agency. In doing so, BDCs often collect higher interest income than the average.
Non-traded BDCs carry some serious risks for investor. It’s not uncommon for investors to face sales commissions as high as 10% that go to the brokers selling them. Additionally, many BDCs also have outrageous fees, charging 2% annually on the total value of your assets in addition to a 20% fee on any profits.
Non-traded BDCs are also illiquid and when you are ready to sell, you may not be able to find a buyer, and if so, at a much reduced price.
According to Central Trade and Transfer, a secondary sales site for private placement investments, shares of FS Energy & Power Fund are currently listed for just $5.25/share. This may mean significant losses to investors since the original purchase price was $10.00/share.
Recovery of FS Energy & Power Fund Losses
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 your FS Energy & Power Fund losses, 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.