Navigating the Financial Promotion Regime
As of today, 31 January, 2024, the revised definitions and criteria outlined by the HM Treasury have officially come into force, marking a notable shift in the regulatory framework governing high-net-worth individuals and sophisticated investors.
These changes come as a result of the consultations launched in 2021, and will:
Increase the financial thresholds to be eligible for the high-net-worth individual exemption to one of the following:
Income of at least £170,000 in the last financial year,
Net assets of at least £430,000 throughout the last financial year.
Strengthen the eligibility criteria for the self-certified sophisticated investor exemption by taking both of the following actions:
1. Removing the criterion of having made more than one investment in an unlisted company in the previous two years,
2. Increasing the company turnover required to satisfy the ‘company director’ criterion to £1.6m.
Require businesses to provide details of themselves (including the company address, contact information, and registration details) in any communications made using the exemptions.
Update the title of the certified high-net-worth individual exemption by removing ‘certified’, reflecting the 2005 update to the FPO removing the requirement to be certified by a third party.
Update the high-net-worth individual and self-certified sophisticated investor statements with the aim to achieve greater engagement from investors and higher awareness of the regulatory protections they will lose.
Discover more by clicking the button below.
Explore the insights and expertise shared in our recorded webinar on Financial Promotion Exemption. Click the link below to gain valuable knowledge.
