NR Private Market categorises approved investors as either Professional Clients or Elective Professional Clients as follows:
Professional Clients: a client that is either a per se professional client or an elective professional client. A professional client is a client who possesses the experience, knowledge and expertise to make his/her own investment decisions and properly assess the risks that he/she incurs. Categories of clients who are considered to be professionals per se:
1. An entity which is required to be authorised or regulated to operate in financial markets. Examples of entities carrying out the characteristic activities are:
a) Credit institutions,
b) Investment firms,
c) Other authorised or regulated financial institutions,
d) Insurance companies,
e) Collective investment schemes and management companies of such schemes,
f) Pension funds and management companies of such funds,
g) Commodity and commodity derivatives dealers,
h) Locals: firms which provide investment services and/or perform investment activities consisting exclusively in dealing on own account on markets in financial futures or options or other derivatives and on cash markets for the sole purpose of hedging positions on derivatives markets or which deal for the accounts of other members of those markets or make prices for them and which are guaranteed by clearing members of the same markets, where responsibility for ensuring the performance of contracts entered into by such firms is assumed by clearing members of the same markets, and/or,
i) Other institutional services.
2. Large undertaking meeting two of the following size requirements on a company basis:
a) balance sheet total at least EUR 20,000,000; and/or,
b) net turnover at least EUR 40,000,000; and/or,
c) own funds at least EUR 2,000,000.
3. Other institutional investors whose main activity is to invest in financial instruments, including entities dedicated to the securitization of assets or other financing transactions.
Elective Professional Clients: NR Private Market may treat a client as an elective professional client if the following process is followed. NR Private Market undertakes an adequate assessment of the expertise, experience and knowledge of the client that gives reasonable assurance, in light of the nature of the transactions or services envisages, that the client is capable of making his own investment decisions and understanding the risks involved (“the appropriateness test”). If the client is an entity, the test should be performed in relation to the person authorised to carry out transactions on its behalf.
At least two of the following highlighted criteria are satisfied:
1. The client has carried out transactions, in significant size, on the relevant market at an average frequency of 10 per quarter over the previous four quarters; and/or,
2. The size of the client’s financial instrument portfolio exceeds EUR 500,000; and/or
3. The client works or has worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged; and/or,
4. The Client is a self-certified sophisticated investors because at least one of the following criteria are satisfied:
4.1. They are a member of a network or syndicate of business angels and have been so for at least the last six months prior; and/or,
4.2. They have made more than one investment in an unlisted company, including via NR Private Market, in the two years prior; and/or,
4.3. They are working, or have worked in the two years prior, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises; and/or,
4.4. They are currently, or have been in the two years prior, a director of a company with an annual turnover of at least £1 million.
5. The Client is a self-certified high net worth investor because at least one of the following criteria are satisfied:
5.1. They had, throughout the financial year immediately preceding, an annual income to the value of £100,000 or more; and/or,
5.2. They held, throughout the financial year immediately preceding, net assets to the value of £250,000 or more.
An investor is deemed to be 'approved' once having completed the KYC/AML on-boarding process on the NR Private Market platform - further details can be found on this process in the Terms & Conditions.
