The Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001

F1... High net worth individualsU.K.

[F221.—(1) If the requirements of paragraphs (4) and (7) are met, the scheme promotion restriction does not apply to any communication which—

(a)is a non-real time communication or a solicited real time communication;

(b)is made to an individual whom the person making the communication believes on reasonable grounds to be a F3... high net worth individual;

(c)relates only to units falling within paragraph (8); and

(d)does not invite or induce the recipient to enter into an agreement under the terms of which he can incur a liability or obligation to pay or contribute more than he commits by way of investment.

[F4(2) “High net worth individual” means an individual—

(a)who has completed and signed, within the period of twelve months ending with the day on which the communication is made, a statement complying with Part 1 of the Schedule; and

(b)whose completion of that statement indicates that they satisfy the conditions set out in the statement to be classified as a high net worth individual.]

(3) The validity of a statement [F5completed and signed] for the purposes of paragraph (2) is not affected by a defect in the form or wording of the statement, provided that the defect does not alter the statement’s meaning and that the words shown in bold type in Part I of the Schedule are so shown in the statement.

(4) The requirements of this paragraph are that either the communication is accompanied by the giving of a warning [F6and information] in accordance with paragraphs (5) [F7, (5A)] and (6) or, where because of the nature of the communication this is not reasonably practicable,—

(a)a warning in accordance with paragraph (5) is given to the recipient orally at the beginning of the communication together with an indication that he will receive the warning in legible form and that, before receipt of that warning, he should consider carefully any decision to participate in a collective investment scheme to which the communication relates; and

(b)a warning [F8and information] in accordance with paragraphs (5) [F9, (5A)] and (6) (d) to (h) is sent to the recipient of the communication within two business days of the day on which the communication is made.

(5) The warning must be in the following terms—

  • “Reliance on this promotion for the purpose of buying the units to which the promotion relates may expose an individual to a significant risk of losing all of the property or other assets invested.”.

  • But, where a warning is sent pursuant to paragraph (4)(b), for the words “this promotion” in both places where they occur there must be substituted wording which clearly identifies the promotion which is the subject of the warning.

[F10(5A) The warning must be accompanied by the following information—

(a)the full name of the person making the communication, or on whose behalf the communication is made;

(b)a postal or electronic address to which a person should send requests for further information or any other enquiry regarding the matters to which the communication relates; and

(c)if applicable—

(i)the country or territory in which the person making the communication, or on whose behalf the communication is made, is incorporated;

(ii)where different from the information provided under (b), the address of the registered office of the person making the communication, or on whose behalf the communication is made; and

(iii)the company number, or unique identification equivalent to a registered number required by the law of the state in which it is incorporated, of the person making the communication, or on whose behalf the communication is made.]

(6) The warning [F11and information] must—

(a)be given at the beginning of the communication;

(b)precede any other written or pictorial matter;

(c)be in a font size consistent with the text forming the remainder of the communication;

(d)be indelible;

(e)be legible;

(f)be printed in black, bold type;

(g)be surrounded by a black border which does not interfere with the text of the warning; and

(h)not be hidden, obscured or interrupted by any other written or pictorial matter.

(7) The requirements of this paragraph are that the communication is accompanied by an indication—

(a)that it is exempt from the restriction on the promotion of unregulated schemes (in section 238 of the Act) on the grounds that the communication is made to a F12... high net worth individual;

(b)of the requirements that must be met for an individual to qualify as a F13... high net worth individual;

(c)that any individual who is in any doubt about the units to which the communication relates should consult an authorised person specialising in advising in participation in unregulated schemes.

(8) A unit falls within this paragraph if it is in an unregulated scheme which invests wholly or predominantly in the shares in or debentures of one or more unlisted companies.

(9) “Business day” means any day except a Saturday, a Sunday, Christmas Day, Good Friday or a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in any part of the United Kingdom.

(10) “Unlisted company” has the meaning given in the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001.]

Textual Amendments