Types of Investor under FSA rules January 31, 2009
Posted by Simon Webber in strategic compliance, styperson pope, Uncategorized.Tags: certificate, certified, elective professional client, exemption, fsa investor categories, high net worth, high net worth individual, high net worth investor, hnwi, linkedin, retail client, self-certified, simon webber, sophisticated investor, specified investments, stypersonpope, unauthorised, unauthorised firms, Uncategorized
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If you are a potential investor, we’d be very grateful if you could take 30 seconds to complete the anonymous poll at the bottom of the page to let us know which certificates (if any) you currently hold.
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
- Individuals for whom a collective investment scheme has been assesed as ‘suitable’
- Individuals assesed as having ‘adequate knowledge & experience’ of the risks of investing in a collective investment scheme
- Individuals who have invested in ‘substantially similar’ schemes
An investor may fall into any or all of these categories and may, at the same time, be either a ”retail” or “elective professional” client. An investor may also fall into one category for a certain instrument (eg shares in unlisted companies) but not for others (eg derivatives). Also, depending on the structure of the investment (eg an EIS or a Collective Investment Scheme) certain categories may or may not be used.
It’s a complicated overlap of different restrictions, trying to acheive different objectives – if you’re promoting an investment or a regulated service and you need to understand it, please do call or e-mail Simon Webber to talk it through.
