High Net Worth / Sophisticated Investors
In October 2014 the Financial Conduct Authority (FCA) introduced a restriction on the marketing of contingent convertible securities by confining their promotion to sophisticated or high-net-worth investors.
Other products covered by similar restrictions include financial instruments referred to by the regulator as 'non-mainstream pooled investments', namely unregulated collective investment schemes (Ucis) - which can be based on some of the more esoteric investments such as plantations or film productions; lightly regulated 'qualified investor schemes'; life settlement investments; and 'special purpose vehicles' that act like investment funds but do not hold shares, debt securities or government stock as underlying assets.
To promote or sell these products to clients, a firm must first ensure that the client falls into one of several special categories of investor. If a client earns at least £100,000 a year or has at least £250,000 in assets, not including their home, they qualify as a high-net-worth investor.
If the client doesn't have such resources they can still buy unregulated products if they qualify as a sophisticated investor.
Investors can 'self-certify' as sophisticated if they satisfy one of the following criteria:
They have been a member of a business angel organisation.
They have had more than one investment in an unlisted company.
They have worked in the private equity sector.
They have been a director of a company with a turnover of £1 million or more.
Our Unregulated Investment Offer
Please click on the links below for details of our currently available unregulated investment, suitable only for High Net Worth & Sophisticated Investors.