Angels & The Law

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).

Business Angels and the FSMA

Additional briefing notes by MBM Commercial can be found below.

Starting a Company

Business Plan Warning Style

Financing a Business

Managing Business Risk with Contracts


McClure Naismith, also a Corporate Partner of LINC, has prepared the following documents for consideration by potential investors.

Common Investor Concerns

10 Key Things You Need to Know – Companies Act 2006

Nominee Directors: Inherent Conflict?


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.

High Net Worth Individual

Sophisticated Investor