Accredited investors
• Accredited investors, also called qualified investors or professional investors, are those who have an understanding of various financial products and the risks and returns associated with them.
• They are able to make informed decisions regarding their investments and are recognised by many securities and financial market regulators globally.
• Generally, they are allowed to trade securities that may not be registered with financial authorities.
• They are entitled to this privileged access by satisfying requirements regarding their income, net worth, asset size, governance status or professional experience.
Significance of accredited investors
• The accredited investor concept may offer benefits to investors and financial product/service providers such as:
• Flexibility in minimum investment amount.
• Flexibility and relaxation in regulatory requirements.
• Access to products/ services offered exclusively to accredited investors.
