Jeremy Hunt: the guardian of the angels? Financial promotion changes set to be reversed

It has been less than two months since changes to the high net worth individual and sophisticated investor financial promotion exemptions took effect. In particular, the income threshold for the high net worth individual exemption was increased from £100,000 to £170,000.

The amendments have been met with frustration from both startups and angel investors, who feared that SME access to angel funding would be impacted significantly.   

Following intense lobbying (see, for instance, the position of the British Beauty Council), it emerged earlier this week that the Chancellor was set to reverse the changes.   

In yesterday’s March 2024 Budget Statement, the government confirmed that it will reinstate the eligibility criteria that previously applied to the financial promotion exemptions for high net worth individuals and sophisticated investors. 

The government has also announced that it will undertake further work to look at the scope of the exemptions.

While both SMEs and angel investors will no doubt be breathing a sigh of relief, the move highlights the challenge of reconciling a strong desire for investment and innovation with the need to protect consumers. The devil may be in the detail so stay tuned for updates.