Question 1

High Net Worth (HNW)

Accepted Answer

1. Certified High Net Worth Individuals (HNWIs) – COBS 4.12.6RUnder COBS 4.12.6R, an individual qualifies as a Certified High Net Worth Individual if they have:​Annual income of £100,000 or more, orNet assets of £250,000 or more (excluding primary residence, pensions, and life insurance policies).

These thresholds were reinstated following the UK Treasury’s reversal on 27 March 2024.​Source: FCA Handbook – COBS 4.12.6R

Question 2

Self-Certified Sophisticated Investors (SCSIs)

Accepted Answer

2. Self-Certified Sophisticated Investors (SCSIs) – COBS 4.12.7RAccording to COBS 4.12.7R, an individual can self-certify as a Sophisticated Investor if they meet at least one of the following criteria:​They are a member of a network or syndicate of business angels and have been so for at least the last six months.​They have made more than one investment in an unlisted company in the last two years.​They are working, or have worked in the last two years, in a professional capacity in the private equity sector or in the provision of finance for small and medium enterprises (SMEs).​They are currently, or have been in the last two years, a director of a company with an annual turnover of at least £1 million.​

Source: FCA Handbook – COBS 4.12.7R

Question 3

Investment Professionals, Companies, or Institutions

Accepted Answer

3. Investment Professionals, Companies, or Institutions – FSMA ExemptionsThe Financial Services and Markets Act 2000 (FSMA) provides exemptions under which certain financial promotions can be made without breaching Section 21. These exemptions include communications directed at:​Investment Professionals: Individuals authorised under FSMA, such as FCA-authorized firms or persons.​Certified High Net Worth Companies, Unincorporated Associations, or Trusts: Entities with net assets of £5 million or more.​Associations of High Net Worth or Sophisticated Investors: Groups where each member is either a high net worth individual or a sophisticated investor.​

These exemptions allow for certain financial promotions to be made without prior approval from an FCA-authorised person, provided they meet specific criteria outlined in the FSMA.​Source: Financial Services and Markets Act 2000 (Financial Promotion) Order 2005

Regulatory Disclosures & Procedures

High Net Worth (HNW)

Self-Certified Sophisticated Investors (SCSIs)

Investment Professionals, Companies, or Institutions

Self-Certification