What is an Accredited Investor?

Discussion in 'Property Information Resources & Tools' started by MTR, 30th Jan, 2017.

Join Australia's most dynamic and respected property investment community
  1. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,786
    Location:
    My World
    For those interested......

    Have had to research this stuff recently, accredited investor will vary... see below


    USA
    In the United States, to be considered an accredited investor, one must have a net worth of at least one million US dollars, excluding the value of one's primary residence, or have income at least $200,000 each year for the last two years (or $300,000 combined income if married)

    Canada
    As a Canadian, the terms are pretty general across Canada for Accredited Canadian Investors. $1 million in financial assets or net worth of $5 million.

    Australia
    Net assets of at least $2.5 million, or a gross income for each of the last 2 financial years of at least $250,000

    New Zealand
    Net assets of at least $2,000,000; or (b) had an annual gross income of at least $200,000 for each of the last 2 financial years.
     
    EN710 likes this.
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,672
    Location:
    Australia wide
    I think that under the corporations act these are known as 'sophisticated investors'
     
    Cactus, Perthguy and MTR like this.
  3. zed_kid

    zed_kid Well-Known Member

    Joined:
    22nd Oct, 2015
    Posts:
    232
    Location:
    Melbourne
    What does membership get you? Bragging rights? Favourable loan conditions?
     
  4. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,022
    Location:
    QLD
    Access to deals without a prospectus, IPOs etc. In theory they have sufficient knowledge, income and assets to know what they are doing.:rolleyes:
     
    petewargent and Terry_w like this.
  5. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,786
    Location:
    My World
    If you are a company raising funds you need to know the definition so your investors comply with regs
     
    EN710 likes this.
  6. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,786
    Location:
    My World
    Not at all, governments make the rules to protect investors, still learning, all new to me
     
  7. mikey7

    mikey7 Well-Known Member

    Joined:
    30th Mar, 2016
    Posts:
    1,173
    Location:
    Sydney, Brisbane
    Gross COMBINED income in Aus? Or single income?
     
  8. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,786
    Location:
    My World
    good question? don't know perhaps someone does
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,101
    Location:
    Sydney or NSW or Australia
    I thought these knew which fork to yse in a formal dinner setting, which wine to drink, which tyres to put on the Monaro for demos at the Summer Nats and whether Monaco, St Moritz or Fis is the place to be seen?
     
    datto likes this.
  10. hobo

    hobo Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    682
    Location:
    FNQ
    @mikey7 - Combined, Wikipedia says: Accredited investor - Wikipedia

    I see that the USA has an additional clause that there also must be "..the expectation to make the same amount this year", which doesn't seem to be a criteria for most other countries listed.
     
  11. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
    Posts:
    1,445
    Location:
    Melbourne
    Yes. Which allows you the ability to partake in investments that retail investors can't.
     
    Perthguy likes this.
  12. petewargent

    petewargent Buyer's Agent

    Joined:
    5th Jul, 2015
    Posts:
    300
    Location:
    Australia
    http://asic.gov.au/regulatory-resou...ertificates-issued-by-a-qualified-accountant/

    Oz equivalent 'sophisticated investor' accreditation is income of $250k p.a. for two years & net assets of $2.5m+ & relates to the person buying the financial product (i.e. not a couple), or to a company or trust controlled by a person - see the 'calculating income or assets' section.

    Share placements or offerings made to sophisticated investors speed up the capital raising process thanks to disclosure document/prospectus exemption under the Corps Act 2001.

    If in doubt call ASIC!
     
    Perthguy and MTR like this.
  13. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,672
    Location:
    Australia wide
  14. Hwangers

    Hwangers Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    338
    Location:
    Sydney
    possibly a dedicated relationship manager or private banker at one of the institutions ...
     
  15. Omnidragon

    Omnidragon Well-Known Member

    Joined:
    17th Oct, 2015
    Posts:
    1,693
    Location:
    Victoria
    Allows investments in certain things as mentioned above. Various funds also can only take money from wholesale investors.

    There's a third way to be accredited in Aus and that's having someone sign you off.
     
  16. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,572
    Location:
    Melbourne
    If you are a bogan. Can you be a' sophisticated ' investor?
     
    datto likes this.
  17. mikey7

    mikey7 Well-Known Member

    Joined:
    30th Mar, 2016
    Posts:
    1,173
    Location:
    Sydney, Brisbane

Price Accounting provide tax services and advice to developers on issues incl GST, Tax + Structure. Our free developer toolkit covers many of the key elements and is critical to a new development tax plan. Email for your copy and our new client pack.