§ The Minister of State, Home Office (Baroness Scotland of Asthal)The investor category of the immigration rules was introduced on 1 October 1994 for investors who wish to come to the UK to invest £1 million. This must include a £750,000 investment in UK government bonds, or in share or loan capital in active and trading UK registered companies as set out within the immigration rules. At present the UK attracts around 26 investors to the UK a year, providing around £26 million of investment in the UK a year.
As part of the Government's approach to sensible, managed migration where it is in the UK's economic interest, we are revising this category in the light of the experience of other countries who have similar investment routes. The Government recognise that it is important to have effective opportunities for major investors and that the category could be improved to attract more high net worth migrants to come to the UK.
We have decided to allow overseas investors in future to use loaned money from an authorised financial institution (those regulated by the Financial Services Authority) where the potential investor has a personal net worth of £2 million. In Canada, similar changes were made to their investors category resulting in an increase in investors moving to Canada. The UK hopes to emulate this success.
Investors whose funds are tied up in illiquid assets and investors who prefer to invest their own money in higher interest investment products will now be able to apply to enter the UK as a result of these changes.
The revised arrangements for the investors route will be reflected in the Immigration Rules on 13 January 2004.