Definition of "high net worth individual" in mortgage terms

fabsaver

I'm curious as to why:

The FCA Mortgage Conduct of Business Rules defines HNWI as having an annual net income of no less than £300,000 or net assets of no less than £3,000,000 https://www.handbook.fca.org.uk/handbook/glossary/G2953.html

The FCA Investment Conduct of Business Rules defines HNWI as having an annual net income of no less than £100,000 or net assets of no less than £250,000 https://www.handbook.fca.org.uk/handbook/COBS/4/12.html#DES582

That's quite a difference!

alexanderalexander

Thanks all for the replies, which are most instructive.

fabsaver wrote: »

I'm curious as to why:

The FCA Mortgage Conduct of Business Rules defines HNWI as having an annual net income of no less than £300,000 or net assets of no less than £3,000,000 https://www.handbook.fca.org.uk/handbook/glossary/G2953.html

The FCA Investment Conduct of Business Rules defines HNWI as having an annual net income of no less than £100,000 or net assets of no less than £250,000 https://www.handbook.fca.org.uk/handbook/COBS/4/12.html#DES582

That's quite a difference!

Presumably investments are considered lower-risk than mortgages in terms of exempting people from regulations? Also, the investment definition of net worth excludes primary residence and pensions, whereas the mortgage definition seemingly includes everything, which (given how much wealth is tied up in primary residences and pension pots) would make the definition in terms of assets less far apart than first appears for a lot of people.