An introducer is an entity that connects potential investors with investment opportunities, typically without providing specific investment advice. Introducers facilitate introductions between investors and companies or investment products.
Unlike financial advisers, introducers DO NOT provide tailored investment advice or recommendations. They simply introduce potential investors to opportunities and products, whereas financial advisers offer personalised guidance and may manage investments on behalf of clients.
NO. The activity of introducing is generally not regulated in the same way as financial advising. However, the introducer must comply with relevant laws, such as the Financial Services and Markets Act (FSMA), and ensure that only eligible investors receive certain types of information.
Using an introducer can provide access to a wider range of investment opportunities, including exclusive or niche markets that might not be easily accessible otherwise. Introducers often have networks and connections that can benefit investors.
YES, there are risks. Introducers DO NOT provide investment advice, so investors need to conduct their own due diligence. The products introduced are likely to be unregulated, meaning they do not have the same investor protections as regulated products.
Eligibility typically depends on meeting certain criteria, such as being a High Net Worth Individual or a Sophisticated Investor, as defined by regulatory standards. Please Click Here to view Investor Eligibility.
Introducers can offer a range of opportunities, including private equity, real estate, commodities, regulated funds, and more. The specific offerings will depend on the introducer’s network and focus areas.
NO. Typically, investors do not pay fees directly to the introducer. The introducer usually earns a commission or fee from the companies or products they introduce to investors.
Before investing, consider your investment goals, risk tolerance, and the level of due diligence you can perform. Ensure that you fully understand the investment product and that it aligns with your financial objectives. Seeking independent financial advice is also recommended.
Can an introducer provide guarantees about investment returns?