A high net worth individual is one who: Had, during the financial year immediately preceding the date of the certificate, an annual income of £100,000 or more Held, throughout the same year, net assets of £250,000 or more. Some assets may not be included, such as the residential home, a pension or the proceeds of life assurance contracts. The wording and layout of the HNW certificate are as prescribed by the Government and this needs to be signed by the investor for them to receive details of non FCA regulated products such as the purchase of shares in unlisted companies.
†† What is a high net worth individual?
A sophisticated investor is someone who meets at least one of the following criteria: Has been a member of a network or syndicate of business angels for at least the six months preceding the date of the certificate Has made more than one investment in an unlisted company in the two years preceding that date Has worked, in the two years preceding that date, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises Has been, in the two years preceding that date, a director of a company with an annual turnover of at least £1 million The certificate is in a prescribed format and the promotion must include warnings similar to those for a high net worth individual. Basically the exemption allows promotions about the purchase of shares in unlisted companies.