What is this high net worth investor statement for financial promotion?
The basics: In the UK, there are rules designed to protect the public when making certain types of investments, such as investing in shares in a company whose shares aren't listed on a stock exchange. These are called the 'financial promotion rules' and an offer to invest in a company is called a 'financial promotion'. If a company makes a financial promotion without it being approved by an 'authorised person' registered with the Financial Conduct Authority, a criminal offence will be committed by its directors. However there are certain exemptions, and one of these is where the person receiving the offer is certified as a 'high net worth investor'.
When should I use this financial promotion statement for high-net-worth investors?
High net worth individuals: This is a certificate in the form of a letter to be signed by a UK-based individual confirming that they are a 'high net worth individual' and understand the risks of investing in a private company's shares.
What is a high net worth individual? A 'high net worth individual' means someone with an annual income of £100,000 or more and held, throughout the financial year immediately before the date they sign the letter, net assets of £250,000 or more.
Other types of investors: This high net worth investor statement for financial promotion should therefore be provided to any high-net-worth individuals that want to invest in a company. This document wouldn't be used where an individual investing in a company isn't a high net worth individual. Instead, a company should consider whether they are an 'investment professional', 'sophisticated investor' or 'restricted investor' and use those certificates instead. Depending on the type of investor, the following templates can be used:
- financial promotion statement for investment professionals; or
- financial promotion statement for self certified sophisticated investors.
Why Docue?
Easy to use: With Docue, you can create a top-quality high net worth investor statement for financial promotion easily and quickly. Simply answer the questions throughout the template, and your document will update in real time based on your responses.
Drafted by lawyers: The high net worth investor statement for financial promotion template includes model clauses designed by business lawyers to help you draft the letter yourself and tailor it to your needs. Guidance notes written by our lawyers are included to help you along the way.
All-in-one solution: Signatures can be collected electronically, and all documents can be stored securely in Docue Drive.
Tags: financial promotion statement for high-net-worth investors, financial promotion for high-net-worth investors
