The FSA runs a tight ship protecting the public from unregulated (and potentially unscrupulous) financial promotions. For the savvy investor, however, he/she can receive investment opportunities without going via an advisor. To be exempt you have to meet defined criteria. Read on to find out if you qualify.
The FSA wants to ensure that the general public does not get led into making investments based on incomplete, untransparent, misleading or inaccurate promotions. However, the FSA is not looking to protect people whom they consider to be sufficiently knowledgable and capable not to need protection. The following persons are considered exempt by the FSA:
1. If you have an income not less than £100,000 a year OR
2. If your net assets (excluding your home) are worth £250,000 or me OR
3. If you have been a member of a business angels network for at least six months OR
4. If you have made at least one investment in an unlisted security in the previous two years OR
5. If you have worked in a professional capacity in the area of finance to small or medium sized businesses in the last two years OR
6. If you have worked in the provision of private equity OR
7. If you have been a director of a company with a turnover of at least £1m or more.
If points 1 or 2 describe you accurately then the FSA allows you to certify yourself as a high net worth individual. If any of the points 3 to 7 describe your accurately then the FSA allows you certify yourself as a sophisticated investor.
March 7th, 2012 by Lee Bish
