The content of this promotion has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on this promotion for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested” (Article 48(5) and Article 50A(5)).
FCA regulatory framework provides strict guidelines we must adhere to. Under FCA rules this investment cannot be promoted to retail investors and must only be offered to qualifying high net worth and sophisticated investors as detailed below.
These investments are considered ‘non readily realisable securities’, which means they’re illiquid, difficult to price and don’t have a secondary market. This also means they’re only suitable for certain types of investor:
The UK Financial Conduct Authority (FCA) has a basic definition of a High Net Worth Investor:
An individual who has signed, within the last twelve months, a statement to confirm they have an annual income of more than £100,000, or net assets, excluding their primary residence, of more than £250,000. COBS 4.12.6
Declaration High Net Worth
A certified high net worth investor is an individual who has signed, within the period of twelve months ending with the day on which the communication is made, a statement in the following terms:
I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:
I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me to seek advice from an authorised person who specialises in advising on non-mainstream pooled investments.
closeThe UK Financial Conduct Authority (FCA) has a basic definition of a Self-Certified Sophisticated Investor:
An individual who has signed, within the last twelve months, a statement to confirm that they have sufficient knowledge to understand the risks associated with engaging in investment activity in non-mainstream, pooled investments. COBS 4.12.8
Declaration Self-Certified Sophisticated Investor
“SELF-CERTIFIED SOPHISTICATED INVESTOR STATEMENT
A self-certified sophisticated investor is an individual who has signed, within the period of twelve months ending with the day on which the communication is made, a statement in the following terms:
I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:
(i) I can receive promotional communications made by a person who is authorised by the Financial Conduct Authority which relate to investment activity in non-mainstream pooled investments;
(ii) the investments to which the promotions will relate may expose me to a significant risk of losing all of the property invested.
I am a self-certified sophisticated investor because at least one of the following applies:
(a) I am a member of a network or syndicate of business angels and have been so for at least the last six months prior to the date below;
(b) I have made more than one investment in an unlisted company in the two years prior to the date below;
(c) I am working, or have worked in the two years prior to the date below, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises;
(d) I am currently, or have been in the two years prior to the date below, a director of a company with an annual turnover of at least £1 million.
I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.
closeThe UK Financial Conduct Authority (FCA) has a basic definition of a Certified Sophisticated Investor:
An individual who has a written certificate within the last 36 months by an FCA Approved Person confirming that the investor is sufficiently knowledgeable to understand the risks associated with engaging in investment activity in non-mainstream, pooled investments. COBS 4.12.7
Declaration Certified Sophisticated Investor
A certified sophisticated investor is an individual:
“SOPHISTICATED INVESTOR STATEMENT
I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified sophisticated investors and I declare that I qualify as such.
A self-certified sophisticated investor is an individual who has signed, within the period of twelve months ending with the day on which the communication is made, a statement in the following terms:
I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me to seek advice from an authorised person who specialises in advising on non-mainstream pooled investments.
closeUnder FCA regulations it is essential to verify all our prospective investors’ status prior to delivering any financial promotions or details of investment opportunities. In order to proceed you must first confirm that you are one of the listed types of investor.
If you do not meet any of these criteria, you must not proceed any further and exit.
By clicking the below button, you can confirm that you fall into one of the investor mentioned categories above.
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