How do I know which investor category is right for me?
To become authorised to invest via Tifosy, you must select the investor category which best describe you before investing. There are four categories:
The FCA refers to ‘Ordinary Investors’ as ‘Restricted Investors’. As a RestrictedInvestor, you will be certifying that you will not invest more than 10% of your net assets per year in shares, bonds or other securities that are not listed on a regulated stock exchange. For these purposes, ‘net assets’ does not include your primary property, nor any money raised through a loan secured against that property. ‘Net assets’ also excludes, for these purposes, any benefits which are payable to you upon termination of service, retirement or death, as well as any withdrawals from pension savings (except where the withdrawals are used directly for income in retirement).
As a ‘Self-Certified Sophisticated Investor’, you will be certifying that you possess a greater knowledge of investment risks and rewards through experience. To be eligible, at least one of the following should apply to you: (i) you are a member of a network of business angels and have been for at least 6 months; (ii) you have made more than one investment in an unlisted company in the last two years; (iii) you have, in the last two years, worked in a professional capacity in private equity or finance for small and medium businesses; and (iv) you have, in the last two years, been a director of a company with an annual turnover of at least £1 million.
High Net Worth Investor:
As a ‘High Net Worth Investor’, you will be certifying that in the last financial year you had: (i) an annual income of £100,000 or more; or (ii) you held net assets of £250,000 or more. For these purposes, ‘net assets’ does not include your primary residence or any money raised through a loan secured against that property. It also excludes any rights under a contract of insurance, any benefits which are payable to you upon termination of service, retirement or death and any withdrawals from pension savings (except where the withdrawals are used directly for your income in retirement).
The FCA refers to ‘Advised Investors’ as ‘Certified Sophisticated Investors’. As an Certified Sophisticated Investor, you will be a client of a financial adviser or wealth manager and will receive advice from such adviser about any investment you make through Tifosy.
Please be aware, to categorise yourself as an Advised Investor, you will need to email Tifosy directly at email@example.com, as we will be required to verify the information provided with your financial adviser.