What is an Accredited Investor?
An Accredited Investor (“AI”) is an individual or firm who meets the minimum financial threshold set by regulators in the country and is given access to exclusive investment opportunities with fewer regulatory constraints.
These investment opportunities, such as digital payment tokens (“DPT”), are an inherently greater risk because they do not require the normal disclosures that involve registration with regulatory bodies.
In Singapore, the MAS implemented legislative amendments to enhance regulatory safeguards for investors in 2018. The criteria for an investor to qualify as an Accredited Investor have been refined. With effect from 8 January 2019, the introduction of an opt-in regime will allow investors to elect for Accredited Investor status.
It’s important to note:
Merkle’s minimum requirement for individual users must be an Accredited Investor by meeting at least one of the following requirements from the relevant authorities regarding their income, net worth, asset size, governance status or professional experience. Fundamentally, this requirement is to ensure that AIs as our clients are financially stable, experienced, and knowledgeable about relatively risky ventures and, therefore, have a lesser need for the protection provided by regulatory disclosure filings.
Who can be an Accredited Investor?
Any user who meets any of the qualifying criteria and has opted-in to be treated as an Accredited Investor.
How to qualify as an Accredited Investor
For individuals to qualify to become Accredited Investors, they have to meet at least 1 of the following three (3) criteria:
1. Income in the preceding 12 months is not less than SGD300,000 (or it’s equivalent in a foreign currency)
2. Net personal assets exceeding SGD2 million (or its equivalent in a foreign currency in value, of which the net value of the investor’s primary place of residence can only contribute up to SGD1 million
3. Net Financial Assets exceeding SGD1 million (or its equivalent in a foreign currency or DPT) in value
What Supporting Documents are Needed to Submit for an AI Eligibility Assessment?
Examples of supporting documents
For Net Personal Assets / Net Financial Assets:
• latest bank statement;
• latest statement from the Central Depository (Pte) Ltd (CDP) showing personal assets;
• latest statement from brokerage houses or DPT exchange/brokerage showing net personal assets
• DPT wallet address (custodial or non-custodial)
For net equity of property:
• title deeds free of encumbrances;
• latest housing loan statement
• salary slip;
• latest Notice of Assessment or overseas tax authorities’ returns;
• letter from employer certifying individual’s income in the preceding twelve (12) months
Last updated: 4 June 2022