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Lender Certification

Lender Certification

As an investor on the Assetz Capital platform, we ask you to certify as to which type of investor you are every twelve months.

The certification process is a result of the rules introduced by the FCA on 9th December 2019, which are aimed at enhancing the protection of retail investors.

Below is a full description of each investor type, along with more information in the Frequently Asked Questions section.

 

Types of Investor

To use our platform, investors need to select a profile which best describes their experience level. 

High Net Worth Investor summary:

An investor with significant income (£100,000 pa or more) or significant net assets (£250,000 or more). These investors will be asked to digitally sign the following statement, the wording of which is defined by the FCA regulations.

HIGH NET WORTH INVESTOR STATEMENT

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of P2P agreements or P2P portfolios. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

  • I had, throughout the financial year immediately preceding the date below, an annual income to the value of £100,000 or more. Annual income for these purposes does not include money withdrawn from my pension savings (except where the withdrawals are used directly for income in retirement).
  • I held, throughout the financial year immediately preceding the date below, net assets to the value of £250,000 or more. Net assets for these purposes do not include:

                a. the property which is my primary residence, or any money raised through a loan secured on that property; or

                b. any rights of mine under a qualifying contract of insurance; or

                c. any benefits (in the form of pensions or otherwise) which are payable on the termination of my service or on my death or retirement and to which I am (or my dependants are), or may be, entitled; or

                d. any withdrawals from my pension savings (except where the withdrawals are used directly for income in retirement).

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me to seek advice from an authorised person who specialises in advising on P2P agreements or P2P portfolios.

Sophisticated Investor summary:

An investor who has made more than one investment in peer-to-peer lending in the last two years or who meets certain other criteria relating to investment experience. These investors will be asked to digitally sign the following statement, the wording of which is defined by the FCA regulations.

SOPHISTICATED INVESTOR STATEMENT

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of P2P agreements or P2P portfolios. I understand that this means:

i.                     I can receive promotional communications made by a person who is authorised by the Financial Conduct Authority which relate to investment activity in P2P agreements or P2P portfolios;   

ii.                   the investments to which the promotions will relate may expose me to a significant risk of losing all of the property invested.


I am a self-certified sophisticated investor because at least one of the following applies:

    a. 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 below;

    b. I have made more than one investment in a P2P agreement or P2P portfolio in the two years prior to the date below;

    c. I am working, or have worked in the two years prior to the date below, in a professional capacity in the provision of finance, resulting in an understanding of the P2P agreements or P2P portfolios to which the promotions will relate;

    d. I am currently or have been in the two years prior to the date below, a director of a company with an annual turnover of at least £1 million.

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me to seek advice from an authorised person who specialises in advising on P2P agreements or P2P portfolios.

Restricted Investor summary:

An investor who has not invested more than 10% of their net assets into peer-to-peer lending in the last year and who undertakes not to invest more than 10% in the next year. These investors will be asked to digitally sign the following statement, the wording of which is defined by the FCA regulations.

RESTRICTED INVESTOR STATEMENT

I make this statement so that I can receive promotional communications relating to P2P agreements or P2P portfolios as a restricted investor. I declare that I qualify as a restricted investor because:

i.                     in the twelve months preceding the date below, I have not invested more than 10% of my net assets in P2P agreements or P2P portfolios; and

ii.                   I undertake that in the twelve months following the date below, I will not invest more than 10% of my net assets in P2P agreements or P2P portfolios.

Net assets for these purposes do not include:

        a. the property which is my primary residence, or any money raised through a loan secured on that property;

        b. any rights of mine under a qualifying contract of insurance; or

        c. any benefits (in the form of pensions or otherwise) which are payable on the termination of my service or on my death or retirement and to which I am (or my dependants are), or may be entitled; or

        d. any withdrawals from my pension savings (except where the withdrawals are used directly for income in retirement).

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me to seek advice from an authorised person who specialises in advising on P2P agreements or P2P portfolios.

 

Frequently Asked Questions 

If I’m an existing lender will Assetz Capital automatically certify me?

No, it’s up to you which type of investor you want to certify as, and making your choice should take less than a minute of your time. Technically we could “auto-certify” anyone who has made more than one investment with us in the last two years as a Sophisticated Investor, but we think that choice should be yours. If someone made a £1 investment into the Quick Access Account a month ago to “test the water” then invested another £10 in the 30-Day Access Account three weeks later, they may not feel that they are a Sophisticated Investor yet, preferring instead to remain as a Restricted Investor for now. Equally, we generally have no way of knowing whether our lenders meet the High Net Worth Investor definition and someone who does might prefer to be certified accordingly. 

How often am I required to complete the certification process?

Once you have completed your certification process, you will be able to re-certify if your circumstances or experience changes. This can be done at your own discretion and can be changed by contacting our Customer Support Team on 0800 470 0430 (Option 1). Otherwise your certification will last for a period of twelve months (the twelve-month period is defined by the regulations), but you will be able to recertify up to 14 days prior to the expiry date of your certification via your dashboard.

How do I complete the certification process?

If you have never completed the certification process or your current certification is about to expire within 14 days, there will be a message in your dashboard asking you to complete the process. Simply click on the link and follow the steps to complete your certification.

Can I still use the platform and make investments if I haven’t certified as to the type of investor I am?

No, the FCA has stipulated that we are unable to offer ‘Direct Offer Financial Promotions’ (DOFP) to customers who haven’t certified as one of the above-mentioned investor types. In very broad terms, a DOFP is where the peer-to-peer lending platform offers lenders a direct mechanism to invest. Therefore, if you have not completed certification, you will lose any new investment functionality in your dashboard. Your existing investments will not be affected.

I’ve not completed certification, but I’ve sent money from my bank to an Assetz Capital investment account, will my funds become invested?

Any new funds sent or deposited without you having certified or recertified in accordance with FCA rules will be placed in a holding account as these funds cannot be invested until lenders have completed the certification process. It should also be noted that funds in the holding account are not interest bearing and they can also be withdrawn from the platform if desired.

Can I opt out of lender certification and continue to invest via the Assetz Capital platform?

No, you will need to certify as to the type of lender you are when prompted in your dashboard, before making any new investments on the platform.

- December 7, 2020