Overview
What is an Accredited Investor?
- An Accredited Investor (“AI”) is an individual or entity who meets specific asset or income thresholds as set out by the Monetary Authority of Singapore (MAS) and has opted in to be treated as an AI.
- AIs are generally considered to be better informed, have a better understanding of financial markets and investment risks and better able to access resources to protect their own interests. AIs are therefore provided with access to higher-risk investment products, with reduced regulatory protections.
What are the benefits of becoming Accredited Investors?
- Expanded Product Access
AIs can trade a wider range of financial products without completing additional suitability assessments, including complex derivatives, structured products, and private offerings not available to retail investors.
- No SIP Restrictions
AIs can trade Specified Investment Products (SIPs) without completing SIP eligibility check required for retail investors.
How do I qualify as an Accredited Investor?
You may qualify as an AI if you meet any of these criteria:
- Individual
- Net financial assets exceeding SGD 1 million (or its equivalent in a foreign currency).
- Income of at least SGD 300,000 (or its equivalent in a foreign currency) in the preceding 12 months.
- Net personal assets exceeding SGD 2 million (or its equivalent in a foreign currency).
- Corporate
- Net assets exceeding SGD 10 million (or its equivalent in a foreign currency).
- Entire share capital is owned by one or more persons, all of whom are accredited investors.
Applying for Accredited Investor Status
How do I apply for Accredited Investor status?
Complete the Accredited Investor upgrade request via the Client Portal > Account Settings > Investor Status and submit the required supporting documentation for verification.
The Accredited Investor status will be automatically approved if the client’s equity holdings in their account(s) exceed the Accredited Investor prescribed financial threshold. Clients holding a portfolio value below the required financial threshold will be requested to either (i) provide documentation proving their asset or income or (ii) make a deposit to increase their holdings.
What documents are accepted as proof for Accredited Investor status?
For Individuals:
- Financial Assets
You can prove that your financial assets exceed in value S$1 million (or its equivalent in a foreign currency) using a recent (within 3 months) bank or brokerage statement.
- Income
You can prove that your income in the preceding 12 months is not less than S$300,000 (or its equivalent in a foreign currency) using:
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- Last 3 months’ original computerized salary slip;
- Latest Income Tax Notice of Assessment or overseas tax authorities’ returns;
- Letter from employer on official company letterhead within 30 days; or
- Last 12 months’ CPF contribution statement
- Net Personal Assets
You can prove that your net personal assets exceed in value S$2 million (or its equivalent in a foreign currency):
Using Property
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- Property title deed; or
- Property valuation report less than 6 months old from recognized valuers
The value of the property:
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- Is to be calculated by deducting any outstanding amounts in respect of any credit facility that is secured by the residence from the estimated fair market value of the residence; and
- Is taken to be the lower of the following:
- The value calculated under (i); or
- S$1 million
Using Owner’s Equity
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- Latest audited annual accounting report of the company (audit report by the Big Four auditing firm and/or recognized registered audit company in the country)
Using Financial Assets
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- Recent (within 3 months) bank or brokerage statements
For Corporate:
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- Net Assets
You can prove that your net assets exceed in value S$10 million (or its equivalent in a foreign currency) using the most recent audited balance sheet or if the corporation is not required to prepare audited accounts regularly, a balance sheet certified by the corporation as giving true and fair view of the state of affairs of the corporation as of the date of the balance sheet, which date must be within the preceding 12 months.
-
- Owned by Accredited Investors
You can prove that you are owned by Accredited Investors by providing proof that each of your shareholders is either an individual or a corporate Accredited Investors – refer to the requirements above under “For Individuals” and “For Corporates”.
Status
How long does Accredited Investor status last?
Your status requires periodic review, at the frequency determined by our company’s policy, to verify continued eligibility.
How can I opt out of Accredited Investor status?
Accredited Investors have the flexibility to request opt-out from Accredited Investor status at any point in time. Kindly contact our Client Service for further assistance.