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  • Client Classification

    • C4-3.1.2

      Category 4 investment firms must only provide services to accredited investors who are defined as:

      (a) Individuals who have a minimum net worth (or joint net worth with their spouse) of USD 1,000,000, excluding that person’s principal place of residence;
      (b) Companies, partnerships, trusts or other commercial undertakings, which have financial assets available for investment of not less than USD 1,000,000; or
      (c) Governments, supranational organisations, central banks or other national monetary authorities, and state organisations whose main activity is to invest in financial instruments (such as state pension funds).
      Added: January 2022

    • C4-3.1.3

      Before providing any regulated investment services to any client, a category 4 investment firm must take reasonable steps to obtain appropriate information to establish whether that client is an accredited investor. Such classification must be communicated to the client along with an explanation of the implications of such classification. Licensees must also keep records of the classification established for each client, including sufficient information to support such classification.

      Added: January 2022