Certain investment opportunities are restricted to investors: new roles for HNWI and Sophisticated Investors
Certain investment opportunities are restricted to investors: new roles for HNWI and Sophisticated Investors
From January 31, 2024, updated financial promotion rules will take effect, impacting standards for High Net Worth Individuals (HNWI) and exemptions for self-certified sophisticated investors. The new rules reflect an on-going evolution in financial industry standards. It underscores the importance of regular appraisal, not only of personal financial standing but also of the changing landscape of regulations. As always, professional credentials and industry experience remain key aspects for individuals and investors to consider in their investment decisions.
According to the new roles, investors will have to demonstrate that:
1) they have an annual income of £170 thousand
2) a net asset threshold of £430 thousand
3) no longer able to use previous investment experience as an indicator of sophistication
4) as a Company Director, in order to continue to meet the Sophisticated Investor standard, the company under their leadership must now have a turnover exceeding £1.6 million.