Accredited Investor – Leader Investments

Are You an Accredited Investor?

OVERVIEW

The definition of “accredited investor” is set out in section 1.1 of National Instrument 45-106 Prospectus Exemptions.

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.

Leader offerings are open only to accredited investors who are residents of Canada.

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, contracts of insurance) they hold on their own or with a spouse being more than $1,000,000, before taxes but net of related liabilities.
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