High Net Worth (HNW) or Sophisticated Investor Certifications

High Net Worth investor

To qualify as a High Net Worth (HNW) investor, you need to:

  • Have had, throughout the previous financial year, an annual income to the value of £100,000 or more. Annual income for these purposes does not include money withdrawn from your pension savings (except where the withdrawals are used directly for income in retirement), or
  • Have held, throughout the previous financial year, net assets to the value of £250,000 or more. Net assets for these purposes do not include:
    • (a) the property which is your primary residence or any money raised through a loan secured on that property; nor
    • (b) any rights of mine under a qualifying contract of insurance; nor
    • (c) any benefits (in the form of pensions or otherwise) which are payable on the termination of your service or on your death or retirement and to which you are (or your dependants are), or may be, entitled; nor
    • (d) any withdrawals from your pension savings (except where the withdrawals are used directly for income in retirement).

If you are a High Net Worth investor as described above and can (self-)certify as such, you can receive or have access to promotional communications which are exempt from the restriction on promotion of non-readily realisable investments.

Sophisticated investor

To qualify as a sophisticated investor, at least one of the following should apply:

  • You are a member of a network or syndicate of business angels and have been so for at least the last six months;
  • You have made more than one investment in an unlisted company in the last two years;
  • You are working, or have worked in the past two years, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises;
  • You are currently, or have been in the past two years, a director of a company with an annual turnover of at least £1 million.

If you are a sophisticated investor as described above and can (self-)certify as such, you can receive or have access to promotion of non-readily realisable investments made by a person who is authorised by the Financial Conduct Authority (FCA).

In both cases, you understand and accept that:

  • the investments to which the promotions will relate may expose you to a significant risk of losing all of the money or other property invested.
  • it is open to you to seek advice from an authorised person who specialises in advising on non-readily realisable investments and more specifically on EIS/SEIS funds.