It is permissible to give a copy of your Business Plan to an adviser or consultant for comment or advice. Equally you can give a copy of it to a Bank Manager in connection with obtaining a loan or an overdraft facility.
However, if you are issuing the Plan in order to raise new equity finance (raising capital by an offer of shares) for a private company you should be aware that the Financial Services and Markets Act 2000 ("FSMA") places a number of restrictions on who you can give your plan to. This is to protect inexperienced investors from receiving investment proposals and associated risks that they might not understand.
The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 ("Financial Promotion Order") www.opsi.gov.uk/SI/si2005/20051529.htm specifies various categories of people and organisations who are likely to be sufficiently knowledgeable to understand and properlly assess the risks that may be involved.
These are described as "investment professionals", "certified high net worth individuals", "high net worth persons", certified sophisticated investors", "self-certified investors" and "associations of high net worth or sophisticated investors". These are described in more detail in the above Order.
If it is the intention of your Business Plan to be issued to raise equity you should seek advice from a professional. The notice below should appear at the front of the Plan
The content of this promotion has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on this promotion for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all the property or other assets involved.
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