Accredited Investor

Are You an Accredited Investor?

OVERVIEW

The definition of “accredited investor” is set out in section 1.1 of regulatory instrument 45-106

In general terms, it includes various institutions such as banks, trust companies, pension funds, municipalities, certain investment funds, as well as entities (other than investment funds) that have net assets of at least $5 million (as shown on their most recent financial statements). It also includes persons or companies (including individuals) registered, or previously registered, under applicable securities laws in Canada as a dealer or adviser.

In addition, the definition includes individuals where the individual meet certain income or asset tests:

Based on their own net income if it has exceeded $200,000, before taxes, in each of the two most recent calendar years and the individual reasonably expects to also exceed $200,000 in the current calendar year.
Based on their combined net income with their spouse if it has exceeded $300,000, before taxes, in each of the two most recent calendar years and the individual reasonably expects to also exceed $300,000 in the current calendar year.
Based on the aggregate realizable value of financial assets (cash, securities, deposits, contract of insurance) they hold on their own or with a spouse
Based on the net assets (any assets) they hold on their own or with a spouse being at least $5,000,000, calculated net of related liabilities.

Source:
Accredited investor exemption