Angels & The Law
Many aspects of making and arranging private equity investments in unlisted companies are covered by the provisions of the Financial Services and Markets Act 2000.
A good summary of the Law in relation to business angels can be found in this briefing note on the subject prepared by one of our Corporate Partners MBM Commercial. (All links open in a new browser window).
Additional briefing notes by MBM Commercial can be found below.
McClure Naismith, also a Corporate Partner of LINC, has prepared the following documents for consideration by potential investors.
One particular aspect of the Law is that business angel investors receiving “financial promotions” from private companies should be self-certified as either High Net Worth Individuals or Sophisticated Investors.
These terms are defined by the Act and set out in the specific form of words which must be used in the Certificates. Examples of each can be downloaded below.