Code of Conduct

While recognising that Private Equity Investment depends upon an individual’s judgement and skill, there are some Equity Entrepreneur® rules which we ask investors and prospects alike adhere to:

Confidentiality
all opportunities are sensitive and investors will keep confidential any information released to them in the process of investigating business opportunities, and ensure that this duty binds any advisers with whom they consult whether or not in a professional capacity.
Fees
investors understand and agree to be bound by the terms of business of intermediaries.
Employment
investors will not sell their services to fund seekers as a substitute for investment.
Financial Services Act
investors confirm that they are Sophisticated and/or High Net Worth Individuals within the meaning of the Financial Services and
Markets Act (2000).
Equity Entrepreneur® Investor Club Members’ Rooms
Members acknowledge that Equity Entrepreneur® promotes knowledge in and awareness of Business Angel investing and activity, and is not authorised by the Financial Services Authority (FSA) to advise on investment matters. Members agree not to act in any way such as to abuse this status.
Members agree that they will not use the website for any purpose other than the genuine furtherence of their own and others’ knowledge of Business Angel investment and activity. Any discussion will be restricted to genuine Business Angel matters. Any deals that might be discussed or of interest will be pursued through a properly FSA authorised or exempt body.
Wider Applicability
Investors will ensure that anyone they introduce to Equity Entrepreneur® and/or the events run by them is aware of these rules.
Regulation
The sale of, promotion of, management of and/or advising on any Financial product is highly regulated in the UK by the Financial Services Authority and under FSMA (2000). Since 2005, Investors can self certify themselves as High Net Worth Individuals or Sophisticated Investors. Firms can also promote to individuals that they reasonably believe are self certified as high net worth or sophisticated.
High Net Worth Investor
He/she has to certify that:
  1. he/she had, during the financial year immediately preceding the certification date, an annual income to the value of £100,000 or more; AND/OR
  2. he/she held, throughout the financial year immediately preceding the certification date, net assets to the value of £250,000 or more.
Net assets for these purposes do not include:
  1. the property which is the primary residence or any loan secured on that residence;
  2. any rights under a qualifying contract of insurance within the meaning of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001(a); or
  3. any benefits (in the form of pensions or otherwise) which are payable on the termination of service or on death or retirement and to which he/she is (or dependants are), or may be, entitled.
Sophisticated Investor
He/she has to certify that one or more of the following applies:
  1. He/she is a member of a network or syndicate of business angels and has been so for at least the last six months prior to certification date;
  2. He/she has made more than one investment in an unlisted company in the two years prior to certification date;
  3. He/she is working, or has worked in the two years prior to certification date, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises;
  4. He/she is currently, or has been in the two years prior to certification date, a director of a company with an annual turnover of at least £1 million.
Self certification
The certificate makes it clear that:
  1. the High Net Worth or Sophisticated Investor may receive financial promotions that may not have been approved by a person authorised by the Financial Services Authority. The content of such financial promotions may not conform to rules issued by the Financial Services Authority;
  2. by signing the certificate he/she may lose significant rights including loss of property and other assets from making investment;
  3. he/she may have no right to complain to either of the following -
    1. the Financial Services Authority; or
    2. the Financial Ombudsman Scheme;
  4. he/she may have no right to seek compensation from the Financial Services Compensation Scheme.