Written by Ng Jian Wei
An Accredited Investor (“AI”) is an individual who meets the prerequisites set out by the Monetary Authority of Singapore (“MAS”). This individual shall be treated as an AI by the Financial Institution (“FI”) after being consented to opt in. An AI who does not wish to maintain this status is required to sign an opt-out confirmation form. This aspect has been tightened by MAS since 8th January 2019 and all new customers who qualify to be an AI must specifically be consent to be classified as an AI.
Why Opt-In as an AI?
Opting-in as an AI would allow privileged access to a wider variety of wealth solutions which are not available to retail investors. Additionally, AIs would be in a better position to protect their own interest as they would be more informed and have better access to different resources. Once an individual is opted-in as an AI, they will forgo the benefit of certain regulatory safeguards.
Qualifications for AI Status
Meeting 1 of the following 3 criteria will allow an individual to qualify to for an AI status.
- Net personal assets (“NPA”) which exceed SGD2 million (or its equivalent in a foreign currency), but net equity of primary residence capped at SGD1,000,000 of the SGD2,000,000 threshold ; or
- Income in the preceding 12 months is not less than SGD300,000 (or its equivalent in a foreign currency); or
- Have net financial assets (net of any related liabilities) exceeding S$1,000,000 (or its equivalent in foreign currency; or
Meeting 2 of the following criteria will allow joint accounts to qualify to become an AI status.
- An individual who holds a joint account with an AI, in respect of dealings through that joint account.
- All other AI individuals who do not qualify under the AI status on the individual capacity to opt in for AI status for the joint account.
Assessment for AI Status
To qualify for an AI status, an assessment is required for individuals to submit the following to the FI:
- Latest bank statements;
- Latest Central Depository (“CDP”) statements, custody holdings or share financing statements;
- Latest statements showing details of unit trusts held;
- Latest statements showing details of surrender value of insurance policies;
- Latest statements showing details of funds under management;
- Copy of title deed for properties and valuation report (dated within last 12 months) or latest loan statement;
- Latest Notice of Assessment; and
Letter of financial standing (dated within last 3 months) from any reputable Financial Institution.
 A primary residence implies to where the individual primarily lives in. The value of the primary residence is to be calculated after deducting all outstanding amounts relating to any credit facility which is secured by the residence and to be estimated a fair market value of the residence.