Understanding investor type categories

There are three investor types that are able to apply for a Primary Finance Grow Your Savings investment account. They are:

  • High net worth investor
  • Advised investor
  • Self-certified sophisticated investor

We outline the requirements for each investor type category below:

High net worth investor

The requirements that must be met for you to qualify as a certified high net worth individual are that at least one of the following applies—

  • You had, during the financial year immediately preceding the date below, an annual income to the value of £100,000 or more;
  • You 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 your primary residence or any loan secured on that residence;
    • any rights of mine under a qualifying contract of insurance within the meaning of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001; or
    • any benefits (in the form of pensions or otherwise) which are payable on the termination of your service or on your death or retirement and to which you are (or your dependants are), or may be, entitled.

Advised investor

Also known as certified sophisticated investor, the requirements that must be met for you to qualify as this type of investor are that:

  • You have a current certificate in writing signed by an authorised financial advisor confirming that you are sufficiently knowledgeable to understand the risks associated with this type of investment; and
  • you have signed, within the period of twelve months ending with the day on which this communication is made, a statement in the following terms:
    “I make this statement so that I am able to receive promotions which are exempt from the restrictions on financial promotion in the Financial Services and Markets Act 2000. The exemption relates to certified sophisticated investors and I declare that I qualify as such in relation to investments of the following kind [list them]. I accept that the contents of promotions and other material that I receive may not have been approved by an authorised person and that their content may not therefore be subject to controls which would apply if the promotion were made or approved by an authorised person. I am aware that it is open to me to seek advice from someone who specialises in advising on this kind of investment.”

Self-certified sophisticated investor

You are likely to come under this category if you have invested with us before. The requirements that must be met for you to qualify as a self-certified sophisticated investor are that at least one of the following applies—

  • You have made more than one investment in an unlisted company in the two years prior to today, for example, if you have two share certificates with us through our Grow Your Savings investment opportunity;
  • You are a member of a network or syndicate of business angels and have been so for at least the last six months prior to today;
  • You are working, or have worked in the two years prior to today, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises;
  • You are currently, or have been in the two years prior to today, a director of a company with an annual turnover of at least £l million.

If you do not fall under any of these categories currently, but would like to learn more about Primary Finance’s Grow Your Savings investment opportunities, we would recommend you gain certified advice from a regulated financial advisor, or Independent Financial Advisor (IFA). If you would like, we can provide details of financial advisors that are familiar with Primary Finance products, just get in touch with us for more information.