With an IFISA, you can invest in what’s called “innovative finance”, tax-free. Innovative Finance refers to things like peer to peer lending or debt-based crowdfunding. It’s called innovative because it is a way of lending to or investing in individuals or businesses, in exchange for a return which bypasses the banks.
To be classed as a Certified Sophisticated Investor, at least one of the following statements must apply to you.
I have, within the last 36 months received a written certificate confirming sufficient knowledge on the understanding of risks associated with conducting non-mainstream investment activities, from a firm after ongoing an assessment.
I have signed, in a period of 12 months ending with the day on which the communication is made a statement in the following terms:
I make this statement to allow for the ability to receive promotional communications, including those exempt from the restrictions placed on promotions of non-mainstream pooled investments. This exemption relates to certified sophisticated investors and I declare that I qualify as such.
I accept that promotions of which investments relate may expose me to the significant risk of losing all my capital invested. I am also aware that I am advised to seek financial advice from and authorised person or specialises in this investment type.
To be classed as a Self-Certified Sophisticated Investor, at least one of the following statements must apply to you.
I am a member of a network or syndicate of business angels and have been so for at least the last six months prior to the date of this self-certification; or
I have made more than one investment in an unlisted company, including via Sourced, in the two years prior to the date of this self-certification; or
I am working, or have worked in the two years prior to the date of this self-certification, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises; or
I am currently, or have been in the two years prior to the date of this self-certification, a director of a company with an annual turnover of at least £1 million.
I am a Self-Certified High Net Worth Investor
To be classed as a Self-Certified High Net Worth Investor, at least one of the following statements must apply to you.
I had, throughout the financial year immediately preceding the date of this self-certification, an annual income to the value of £100,000 or more; or
I held, throughout the financial year immediately preceding the date of this self-certification, net assets to the value of £250,000 or more.
