What's an Accredited Investor (AI)?

An Accredited Investor (AI) is someone who meets the requirements set out by the Monetary Authority of Singapore (MAS) and has opted in to be treated as an AI by financial institutions. AIs are considered more professional and better equipped to protect their own interests.

What are the benefits of becoming an AI?

AIs generally have access to a wider range of financial instruments and services, including restricted products such as initial public offerings (IPOs), structured notes, equity-linked notes, and selected bonds.

For example, when subscribing to IPOs in HK/US markets, AIs are not subject to the minimum subscription limit of SGD 200,000 (or its equivalent in foreign currency).

How can I qualify as an AI?

You can apply to become an AI if you meet any one of the following eligibility criteria:

• Income in the preceding 12 months is not less than SGD 300,000 (or its equivalent in foreign currency).
• Net personal assets exceeding SGD 2 million (or its equivalent in foreign currency) in value, of which the net value of your primary place of residence can only contribute up to SGD 1 million.
• Net financial assets exceeding SGD 1 million (or its equivalent in foreign currency) in value.

Here, "financial assets" means a deposit as defined in Section 4B, Chapter 19 of the Banking Act of Singapore.

If I have already opted in for AI status at other financial institutions, do I still need to opt in for AI status with Longbridge Securities Singapore?

Yes, you still need to opt in for AI status with Longbridge Securities Singapore and provide supporting documents.

Can my financial assets held at other financial institutions be considered part of my net financial assets?

Yes, financial assets you hold at other financial institutions will also be taken into account.

How do I opt in for or opt out of AI status?

You can go to the Longbridge App > Portfolio > More > Accredited Investor to opt in for or opt out of AI status.

Key takeaways:

After becoming an AI, you will have access to a wider range of financial instruments and services, and you can apply if you meet any one of the following criteria:

• Annual income of at least SGD 300,000.
• Net assets exceeding SGD 2 million (with a cap of SGD 1 million for residential property).
• Net financial assets exceeding SGD 1 million.

Even if you are already an AI at other institutions, you still need to opt in for AI status with Longbridge. Please apply online via the Accredited Investor feature in the Longbridge App.

Disclosures

This article is for reference only and does not constitute any investment advice.