The Financial Conduct Authority (FCA), our governing body, has introduced new guidelines affecting investments in private businesses, including EIS, SEIS, and Inheritance Tax Portfolios (with the exception of VCTs and AIM ISAs). These modifications are aimed at ensuring only those who fully grasp the inherent dangers are granted the chance to invest.
To comply with the updated regulations, we are making a few alterations. The following serves as a quick rundown of the changes.
It is important to note that the information provided on this website is for seasoned investors only and should not be construed as advice, research, or a personal recommendation to invest. If you are unsure, please seek professional guidance.
What's Different?
- Identity Verification: Before accessing the application process for investments, we will verify your identity. Although you can still apply online for all the investment opportunities listed on our website when you click on "Invest Now," we will ask for your email address. This is to determine if you have used our service before. For current Sapphire investors, simply enter the email address we have on file, and you'll be directed straight to the application form. If the email address cannot be matched, you will be considered a first- time investor.
- Reflection Period: Only first-time investors are required to wait 24 hours between expressing interest and applying. This provides them with time to contemplate the risks and determine if they still wish to proceed.
- Investor Declarations: Starting February 1st, all individuals will need to complete the new
declarations before applying for investments in private companies, including EIS, SEIS, and Inheritance Tax Portfolios. The declaration will remain valid for a one-year period. - Application Questions: During the application process for investments in private companies, excluding VCTs and AIM ISAs, we will ask several questions to gauge your knowledge and experience. These questions should be straightforward for any seasoned investor and will need to be answered accurately to complete the application.
- No Discounts: The FCA has banned any incentives, including reduced initial charges, that
could encourage investment. Please note that this does not apply to VCTs or AIM ISAs.
