Retail clients requesting treatment as 'elective' professional clients (as defined by Markets in Financial Instruments Directive (MiFID)) must satisfy at least two of the following quantitative criteria in assessing the client's expertise, experience and knowledge:

This applies to countries: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and United Kingdom.

The Financial Conduct Authority is the regulating body that controls the European investment standards. The Conduct of Business Sourcebook provides that European investors be classified into 3 categories that have different standards. This is similar to how a U.S. person becomes an accredited investor by net worth, income, or third party representation:

1. CERTIFIED HIGH NET WORTH INVESTOR

Certified High Net Worth Investor: is an individual who has signed, within the period of twelve months (12) ending with the day on which the communication is made, a statement in the following terms:

HIGH NET WORTH INVESTOR STATEMENT:

"I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

I had, throughout the financial year immediately preceding the date below, an annual income to the value of £100,000 or more. Annual income for these purposes does not include money withdrawn from my pension savings (except where the withdrawals are used directly for income in retirement).

I held, throughout the financial year immediately preceding the date below, net assets to the value of £250,000 or more. Net assets for these purposes do not include:

  • the property which is my primary residence or any money raised through a loan secured on that property; or
  • any rights of mine under a qualifying contract of insurance; or
  • any benefits (in the form of pensions or otherwise) which are payable on the termination of my service or on my death or retirement and to which I am (or my dependants are), or may be, entitled; or
  • any withdrawals from my pension savings (except where the withdrawals are used directly for income in retirement).

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me to seek advice from an authorised person who specialises in advising on non-mainstream pooled investments.

Signature:

Date: ”

2. CERTIFIED SOPHISTICATED INVESTOR

A certified sophisticated investor is an individual:

  1. who has a written certificate signed within the last 36 months by a firm confirming he has been assessed by that firm as sufficiently knowledgeable to understand the risks associated with engaging in investment activity in non-mainstream pooled investments; and
  2. who has signed, within the period of twelve months ending with the day on which the communication is made, a statement in the following terms:

SOPHISTICATED INVESTOR STATEMENT

"I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified sophisticated investors and I declare that I qualify as such.

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me to seek advice from an authorised person who specialises in advising on non-mainstream pooled investments.

Signature:

Date: ”

This is basically a third party certification. The person should go to a third party to say he/she is a sophisticated investor and the attestation is sufficient for evidencing this.

3. SELF-CERTIFIED SOPHISTICATED INVESTOR

A self-certified sophisticated investor is an individual who has signed, with the period of twelve months (12) ending with the day on which the communication is made, a statement in the following terms:

SELF-CERTIFIED SOPHISTICATED INVESTOR STATEMENT

“I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

  1. I can receive promotional communications made by a person who is authorised by the Financial Conduct Authority which relate to investment activity in non-mainstream pooled investments;
  2. the investments to which the promotions will relate may expose me to a significant risk of losing all of the property invested.
  3. I am a self-certified sophisticated investor because at least one of the following applies:
  • I am a member of a network or syndicate of business angels and have been so for at least the last six months prior to the date below;
  • I have made more than one investment in an unlisted company in the two years prior to the date below;
  • I am working, or have worked in the two years prior to the date below, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises;
  • I am currently, or have been in the two years prior to the date below, a director of a company with an annual turnover of at least £1 million.

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

Signature:

Date: ”


Requirements

An Experienced Investor is a person or body who, at the time of the investment, falls into one of the following categories:

  1. A person or partnership whose ordinary business or professional activity includes, or it is reasonable to expect that it includes, acquiring, underwriting, managing, holding or disposing of investments, whether as principal or agent, or the giving of advice concerning investments; or
  2. A corporate body which has net assets in excess of Euro 1,000,000 or which is part of a group which has net assets in excess of Euro 1,000,000; or 
  3. An unincorporated association which has net assets in excess of Euro 1,000,000; or
  4. The trustee of a trust where the aggregate value of the cash and investments which form part of the trust's assets in excess of Euro 1,000,000; or
  5. An individual whose net worth, or joint net worth with that person's spouse, is greater than Euro 1,000,000, excluding that person's principal place of residence; or
  6. A participant who has a current aggregate of Euro 100,000 invested in one or more experienced investor funds; or
  7. A participant who invests a minimum of Euro 50,000 in an experienced investor fund and who has been advised by a professional adviser to invest in the fund and the fund's administrator has received confirmation of such advice; or
  8. A participant who is a professional client, as defined under the Financial Services Act of 2006; or
  9. A participant in a fund that has re-domiciled to Gibraltar where the Authority has permitted the inclusion of such participant either in respect of a specific fund or generally in respect to funds or a category of funds from a certain jurisdiction.

THE MINIMUM INVESTMENT FOR AN EXPERIENCED INVESTOR WHO DOES NOT FALL WITHIN SUBSECTIONS 1-9 is EURO 100,000 OR ITS FOREIGN CURRENCY EQUIVALENT.

Document requirements

Any documents showing that the User meets the requirements.

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