What is this financial promotion certificate?
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 an 'investment professional'.
When should this financial promotion certificate template be used?
Investment professional: This is a certificate in the form of a letter to be signed by a UK-based individual confirming that they are an 'investment professional' and understand the risks of investing in a private company's shares.
What is an investment professional? An 'investment professional' includes someone who is authorised by the Financial Conduct Authority to carry out regulated activities (such as providing financial advice), a person who undertakes investment-related activities as part of their job and directors/employees of any company that does those things (as long as the promotion is addressed to them in that role).
Other types of investors: This financial promotion certificate should therefore be provided by any investment professionals that want to invest in a company. This document wouldn't be used where an individual investing in a company isn't an investment professional. Instead, a company should consider whether they are a 'high net worth' individual, '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 self certified sophisticated investors; or
- financial promotion statement for high net worth individuals.
Why Docue?
Easy to use: With Docue, you can create a top-quality financial promotion certificate easily and quickly. All you need to do is answer a series of questions, and your financial promotion certificate will be updated in live time to reflect your answers.
Drafted by lawyers: The financial promotion certificate 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 certificate, financial promotion certificate template, financial promotion certificate for investment professionals, financial promotion statement for investment professionals
