The Financial Services Authority (FSA) categorises individual investors in a number of ways and allows certain firms to promote their services, products, investment schemes and funds to different groups. These categories include:
- Certified High Net Worth Investors
- Certified Sophisticated Investors
- Self-Certified Sophisticated Investors
- Qualified Investors
An investor may fall into any or all of these categories and, confusingly, an investor in any category may be a ”retail” or “elective professional” investor as well.
By way of an example, unregulated collective investment schemes investing in unquoted equities can be promoted to three of the above categories but other unregulated collective investment schemes, such as property funds, can only be promoted to one of them (and even then, some firms will be excluded). Exempt unregulated collective investment schemes (such as an Enterprise Initiative Scheme or an Individual Investment Management Agreement) can be promoted to any of them, but only by authorised firms.
If you are a High Net Worth Individual or a Sophisticated Investor, you can find downloadable copies of the investor certificates here.
