What is this financial promotion statement template?
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 self-certifies as a 'sophisticated investor'.
When should I use this financial promotion statement template?
Sophisticated investors: This is a certificate in the form of a letter to be signed by a UK-based individual confirming that they are a 'sophisticated investor' and understand the risks of investing in a private company's shares.
What is a sophisticated investor? A 'sophisticated investor' means someone who is familiar with investing in a private company's shares because they're a member of an angel network, have regularly invested before, work in private equity or are a director of a company with an annual turnover of at least £1 million.
This financial promotion statement template should therefore be provided to any sophisticated investors that want to invest in a company.
When not to use this financial promotion statement template
Other types of investors: This financial promotion statement template wouldn't be used where an individual investing in a company doesn't identify as a sophisticated investor. Instead, a company should consider whether they are an 'investment professional', 'high net worth individual' 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 high net worth individuals.
Why Docue?
Easy to use: With Docue, you can create a top-quality financial promotion statement easily and quickly. All you need to do is answer a series of questions, and your financial promotion statement will be updated in live time to reflect your answers.
Drafted by lawyers: The financial promotion statement 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 template, financial promotion statement, self certified investors
