Important: FCA changes from 1 February
Archived article: please remember tax and investment rules and circumstances can change over time. This article reflects our views at the time of publication.
You may not be aware of this.
From Wednesday 1 February, new rules are being brought in by the Financial Conduct Authority (FCA), our regulator, which affect investments in private companies, including EIS, SEIS and Inheritance Tax Portfolios (VCTs and AIM ISAs are excluded).
The new rules are intended to ensure only people who fully understand – and are comfortable with – the risks are given the opportunity to invest.
To comply with the new rules, we are making some changes. Below we provide a quick overview.
What is changing?
1. We’ll have to check who you are before you can see how to apply.
You will still be able to apply online for all the investment offers on our website. However, as you will notice, when you click on “Show me how to apply”, we will ask for an email address. This is just so we can check whether you have used our service before. For existing Wealth Club members, once you enter the email address we hold on record for you, you should go straight to the application form. If the email address cannot be matched, you will be treated as a first-time investor.
2. 24-hour cooling off period – only for first-time investors
When a first-time investor wishes to apply, 24 hours need to pass between expressing an interest and being able to apply. During this time, they will have an opportunity to review the risks and decide if they still want to go ahead.
3. The high net worth and sophisticated investor declarations are changing
This means from 1 February everyone will have to complete the new declarations before being able to apply for investments in private companies, including EIS, SEIS and Inheritance Tax Portfolios. The declaration will then be valid for 12 months.
4. We have to ask a few questions when you apply
These should be straightforward for any experienced investor: they are intended to assess your knowledge and experience. The questions are part of the application form for investments in private companies, including EIS, SEIS and Inheritance Tax portfolios (VCTs and AIM ISAs are excluded). You will need to answer these correctly before being able to complete your application.
5. We will not be able to offer discounts on EIS/SEIS investments and IHT portfolios
The FCA has banned any incentives to invest, including savings on the initial charges that could encourage someone to apply. Note as above, this does not affect VCTs or AIM ISAs.
If you have any questions, or need any help with the new application process, please do not hesitate to contact us on 0117 929 0511 or by email.
Wealth Club aims to make it easier for experienced investors to find information on – and apply for – investments. You should base your investment decision on the offer documents and ensure you have read and fully understand them before investing. The information on this webpage is a marketing communication. It is not advice or a personal or research recommendation to buy any of the investments mentioned, nor does it include any opinion as to the present or future value or price of these investments. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.