Investor Self Certification Classifications
Direct Investor - Self Classification Guidance
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The FCA requires that all direct-investors self-classify themselves as part of the application process. We have provided the below guidance in order to assist with this process.
The definition of a Restricted Investor is confirming the following statement:
Putting all your money into a single business or type of investment is risky. Spreading your money across different investments makes you less dependent on anyone to do well.
You should not invest more than 10% of your net assets in high-risk investments. Doing so could expose you to significant losses.
For the purposes of this statement, net assets do NOT include your home (primary residence), your pension (or any pension withdrawals), or any rights under qualifying contracts of insurance.
For the purposes of this statement, high-risk investments are peer-to-peer (P2P) loans; investment-based crowdfunding; and unlisted debt and equity (such as in companies not listed on an exchange like the London Stock Exchange).
To certify that you are a restricted investor on the basis that A and B apply to you.
A) In the past twelve months have you invested less than 10% of your net assets in high-risk investments (as defined above)?
B) In the next twelve months do you intend to limit your investment in high-risk investments (as defined above) to less than 10% of your net assets?
If you have answered 'Yes' to A and B, and none of the other other classifications apply, then you classify as a Restricted Investor.
Self-Certified Sophisticated investor
The definition of a Self-Certified Sophisticated investor is confirming the following statement:-
Please confirm whether you qualify as a self-certified sophisticated investor on the basis that A, B, C or D apply to you. In the last two years have you:
A) worked in private equity or in the provision of finance for small and medium enterprises?
B) been the director of a company with an annual turnover of at least £1 million?
C) made two or more investments in an unlisted company?Yes/No
D) been a member of a network or syndicate of business angels for more than six months?Yes/No
E) None of these apply to me.
If you have answered 'Yes' to A, B, C or D, then you are classified as a Self-Certified Sophisticated investor
Certified Sophisticated Investor
The definition of a Certified Sophisticated investor is confirming the following statement:-
Confirm whether you qualify as a sophisticated investor on the basis that in the last three years, you have received a certificate from an authorised firm confirming you understand the risks involved with investing in private equity products.
If this statement applies to you, then you are classified as a Certified Sophisticated Investor
Certified High Net Worth Investor
Please confirm whether you qualify as a high-net-worth investor on the basis that A or B applies to you.
In the last financial year did you have:
A) an annual income of £100,000 or more? Income does NOT include any one-off pension withdrawals.
B) net assets of £250,000 or more? Net assets do NOT include: your home (primary residence), your pension (or any pension withdrawals) or any rights under qualifying contracts of insurance
C) None of these apply to me.
If you have answered 'Yes' to A or B, then you are classified as a Certified High Net Worth Investor