Financial Services and Markets Act 2000 (“the Act”)

The Oxfordshire Investment Opportunity Network links private investors, entrepreneurs and business support organisations to improve the flow of investment capital and management expertise into start up and growing companies.

The objective of the Network is to provide a means of communication between private investors and companies seeking investment capital in the small high growth potential business sector. The Network operates an information service, providing an opportunity for investors to meet entrepreneurs and companies seeking investment and enabling investors to receive information on investment opportunities of interest to them. The Network does NOT advise its members or others on the merits or risks of specific investment proposals. It is emphasised that the responsibility for the decision on specific investment lies with the parties concerned.

Potential investors should be aware that investment in new business carries high risks, as well as the possibility of high rewards. It is highly speculative and no established market exists for the trading of shares in private companies. Before investing in a project about which information is given, potential investors are strongly advised to take advice from a person authorised under the Act who specialises in advising on investment of this kind.

We also wish to point out that companies or individuals seeking investment through the Network must ensure that the information presented to potential investors is neither inaccurate or misleading. They are, accordingly, similarly advised to seek guidance from someone authorised under the Act.

Self certification for private investors under FSMA (2000)

In March 2005, after consultation with stakeholders including OION, the Financial Services and Market Act (2000) was amended to remove the requirement for business angels to gain certification as "high net worth" or "sophisticated" investors through an FSA regulated third party, such as an accountancy firm.

Instead, investors are now able to "self-certify" by meeting simple criteria as "high net worth" or "sophisticated" investors, and downloading, printing and signing a simple form, which can then be used in the same way as the certificates previously issued by FSA regulated third parties.

HMT has published an explanatory note to outline the changes to the Act, or contact Eileen Modral to discuss self-certification further. The actual certificates for OION investors are also available, as either high net worth or sophisticated versions.