DEFINITIONS
Definition of Accredited Investor (for Entities)
An Accredited Investor:
(i) as defined in section 4A(1)(a)(ii) of the Securities and Futures Act 2001 (“SFA”) is a corporation with net assets exceeding S$10 million in value (or its equivalent in a foreign currency) as determined by:
(a) the most recent audited balance sheet of the corporation; or
(b)where the corporation is not required to prepare audited account regularly, a balance sheet of the corporation certified by the corporation as giving a 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.
(ii) as prescribed in regulation 2(2) of the Securities and Futures (Classes of Investors) Regulations 2018:
(a) an entity (other than a corporation) with net assets exceeding $10 million (or its equivalent in a foreign currency) in value;
(b) a partnership (other than a limited liability partnership) in which every partner is an accredited investor; and
(c) a corporation the entire share capital of which is owned by one or more persons, all of whom are accredited investors.
Definition of Accredited Investor (for Individuals)
An Accredited Investor (who is an individual) as defined in section 4A(1)(a)(i) of the SFA is an individual:
(A) whose net personal assets (note 1) exceed in value S$2 million (or its equivalent in foreign currency);
(B) whose financial assets (net of any related liabilities) exceed in value S$1 million (or its equivalent in foreign currency) where “financial asset” means:
(BA) a deposit as defined in section 4B of the Banking Act, Chapter 19 of Singapore; or
(BB) an investment product (note 2) as defined in section 2(1) of the Financial Advisers Act, Chapter 110 of Singapore; or
(BC) any other asset as may be prescribed by regulations made under section 341 of the SFA; or
(C) whose income in the preceding 12 months is not less than S$300,000 (or its equivalent in a foreign currency).
Note 1: In determining net personal assets for the purpose of (A) above, if the property declared by you is owned by more than one party, the value attributed to you in respect of your Accredited Investor status will be accorded based on your ownership stake.
If the property declared by you is your primary residence, the value:
(A) 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
(B) is taken to be the lower of the following:
(i) the value calculated under (a);
(ii) S$1 million.
Note 2: Including securities, securities-based and other derivatives contracts, collective investment schemes, and life policies.
Definition of Professional Investor
“Professional Investor” means:
(a) a bank that is licensed under the Banking Act 1970;
(b) a merchant bank that is licensed, or treated as having been granted a merchant bank licence, under the Banking Act 1970;
(c) a finance company that is licensed under the Finance Companies Act 1967;
(d) an authorised reinsurer as defined in section 1A of the Insurance Act 1966, a licensed insurer licensed under section 8 of the Insurance Act 1966, or a foreign insurer as defined in section 1A of the Insurance Act 1966 carrying on insurance business in Singapore under any foreign insurance scheme established in accordance with section 35B of the Insurance Act 1966;
(e) the Singapore Government;
(f) a statutory body established under any Act in Singapore;
(g) the Government of Singapore Investment Corporation Pte Ltd;
(h) a pension fund;
(i) a collective investment scheme (“CIS”), as defined under section 2(1) of the SFA;
(j) a holder of a capital markets services (“CMS”) licence under the SFA;
(k) a person who is exempted from the requirement to hold a CMS licence to carry on business in dealing in capital markets products that are securities, units in a CIS or specified exchange-traded derivatives contracts under paragraph 2(a) of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations 2018 (“SF(LCB)R”);
(l) a person who is exempted from the requirement to hold a CMS licence to carry on business in dealing in capital markets products that are futures contracts under paragraph 3(1)(a) of the Second Schedule to the SF(LCB)R;
(m) a person who is exempted from the requirement to hold a CMS licence to carry on business in dealing in capital markets products that are over-the-counter derivatives contracts under paragraph 3A(1)(a) or (b) of the Second Schedule to the SF(LCB)R;
(n) a person who is exempted from the requirement to hold a CMS licence to carry on business in fund management in the Second Schedule to the SF(LCB)R, and who has assets under its management of not less than S$15 million;
(o) a headquarters company or Finance and Treasury Centre which carries on a class of business involving fund management but only to the extent that the business in fund management has been approved as a qualifying service in relation to that headquarters company or Finance and Treasury Centre under section 43E(2)(a) or 43G(2)(a) of the Income Tax Act 1947, as the case may be;
(p) a company in the Global Trader Programme of Enterprise Singapore;
(q) a financial adviser licensed under the Financial Advisers Act 2001 who uses the Company’s services solely for the purposes of trading for its own account; or
(r) a hedge fund that has assets under management of not less than S$15 million.
Definition of Expert Investor
An Expert Investor as defined in section 4A(1)(b) of the SFA means:
(A) a person whose business involves the acquisition and disposal, or the holding, of capital markets products, whether as principal or agent;
(B) the trustee of such trust as the Authority may prescribe, when acting in that capacity;
(C) such other person as the Authority may prescribe.
