Compliance Corner: UK Reinstates Private Market Investment Thresholds

Editorial Staff March 28, 2024

Compliance Corner: UK Reinstates Private Market Investment Thresholds

The latest compliance news: regulatory developments, punishments, guidance, permissions, new product and service offerings.

UK Government, Moonfare
Moonfare, a Berlin-headquartered business, has welcomed the UK government's recent cut to the level at which people can put money into certain private market investments.

In the 6 March spring budget, the administration reinstated high net worth eligibility thresholds of £100,000 ($126,300) (annual income) and £250,000 (net assets). The thresholds mark the point at which certain investments, including private market investments, are exempt from promotion restrictions. The thresholds have been raised to £170,000 and £430,000, respectively.

The move comes at a time when there is a steady drumbeat of commentary – as this publication hears in the UK and abroad – about the need to make private equity, credit, infrastructure, venture capital and real estate more accessible to HNW and mass-affluent investors. (See related articles here and here.)

“As a company that champions access to a broader range of investments for all, we welcome the move to reinstate the previous thresholds,” Moonfare’s head of EMEA, Sam Boughton, said. “While private markets are not suitable for everyone, investors should be allowed to evaluate the full range of assets available and build a diversified portfolio based on their risk appetite and future plans. We believe more autonomy in the hands of qualified investors is good for their long-term financial outcomes.”

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