A recent piece of secondary legislation introduced by the government should mean that small and unlisted firms will soon find it easier to raise capital from private investors.
The changes to the Financial Promotion Order (made as part of the two year Review of the Financial Services and Markets Act 2000) will:
- Introduce self-certification for high net worth and sophisticated investors, "making it easier for these groups to exempt themselves from the financial promotion rules." The government says that this will make it easier for small firms to approach wealthy or experienced investors.
- Make it easier for small firms to promote to potential investors "by allowing them to promote to anyone they 'reasonably believe' to be self-certified high net worth or sophisticated."