Recent rule changes implemented by the UK Financial Conduct Authority (FCA) require CoinCorner users in the United Kingdom to classify themselves as one of three 'investor types'. Existing UK users will be asked to do this upon their first login after the changes go live, and new users will be asked to do this as part of the registration process.
Below is more information on how the FCA defines each of the 'investor types' so users can more confidently complete this step and classify themselves.
Restricted investor
Restricted investor is the category that we expect the majority of our users will fall under. As a restricted investor you would need to provide us with estimates for what percentage of your net assets have been invested in high-risk investments over the last 12 months, and what percentage you intend to invest in high-risk investments over the next 12 months.
For the purposes of this statement the FCA classifies 'high-risk' investments as:
- peer-to-peer (P2P) loans
- investment based crowdfunding
- units in a long-term asset fund
- cryptoassets
- unlisted debt and equity
As a restricted investor you would be expected to have invested less than 10% of your net assets in 'high-risk' investments in the last 12 months and not intend to invest more than 10% of your net assets in 'high-risk' investments in the next 12 months.
For the purposes of this statement, net assets do NOT include your home (primary residence), your pension (or any pension withdrawals) or any rights under qualifying contracts of insurance. Any existing bitcoin holdings WOULD count as part of your net assets.
Sophisticated investor
If you have received a certificate from an authorised firm confirming that you understand the risks associated with cryptoasset investments then you qualify as a sophisticated investor by the FCA's definition.
As a sophisticated investor you would need to confirm you've received this certificate, provide the name of the authorised firm who issued it to you and upload a copy of the certificate in the box we provide.
High net-worth investor
To be classified as a high net-worth investor under the FCA's new rules would require a user to have an annual income of £170,000 or more, or net assets of £430,000 or more.
High net-worth investors would be required to provide their income to the nearest £10,000 over the last financial year, as well as the value of their net assets to the nearest £100,000 over the last financial year.
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