The government has made new regulations to update the exemptions in the Financial Promotions Order (2005) (the FPO) relating to high net worth individuals and sophisticated investors.
This forms part of a wider initiative by HM Treasury and the FCA to reform and update the UK's financial promotions regime under section 21 of the Financial Services and Markets Act 2000, and follows an earlier consultation and response published by HM Treasury.
The exemptions under the FPO enable unauthorised firms to issue financial promotions to high net worth individuals and sophisticated investors without the regulatory protections afforded by the financial promotions regime.
The new regulations:
- increase the financial thresholds to be eligible for the high net worth individual exemption to income of at least £170,000 (up from £100,000) in the last financial year, or net assets of at least £430,000 (up from £250,000) throughout the last financial year;
- amend the eligibility criteria for the self-certified sophisticated investor exemption; and
- update the content and format of the high net worth individual and self-certified sophisticated investor statements.
The regulations will come into effect on 31 January 2024.
This post was original published on our Corporate Notes blog.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
