Different types of investors under the Securities and Futures Act
There are three specific classes of investors defined under the Securities and Futures Act - i) accredited investor ii) expert investor iii) institutional investor.
An accredited investor may be determined by the value of his/her/its assets or income. An expert investor means a person whose business involves the acquisition and disposal or holding of capital market products, whether as principal or agent. An institutional investor may refer to a central government or central bank in a jurisdiction other than Singapore; a bank that is licensed under the Banking Act 1970; a recognised market operator; an approved exchange, a license trade repository, among other entity types.
Below are the complete definitions of each class of investor provided by MAS:
An accredited investor is defined as:
- An individual
- Whose net personal assets exceed in value $2 million (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount;
- whose financial assets (net of any related liabilities) exceed in value $1 million (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount, where “financial asset” means —
- a deposit as defined in section 4B of the Banking Act;
- an investment product as defined in section 2(1) of the Financial Advisers Act; or
- any other asset as may be prescribed by regulations made under section 341; or
- a deposit as defined in section 4B of the Banking Act;
- whose income in the preceding 12 months is not less than $300,000 (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount;
- Whose net personal assets exceed in value $2 million (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount;
- a corporation with net assets exceeding $10 million in value (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe, in place of the first amount, as determined by —
- the most recent audited balance-sheet of the corporation; or
- where the corporation is not required to prepare audited accounts regularly, a balance-sheet of the corporation certified by the corporation as giving a true and fair view of the state of affairs of the corporation as of the date of the balance-sheet, which date shall be within the preceding 12 months;
- the most recent audited balance-sheet of the corporation; or
- the trustee of such trust as the Authority may prescribe, when acting in that capacity; or
- such other person as the Authority may prescribe.
An expert investor is defined as :
- a person whose business involves the acquisition and disposal, or the holding, of capital markets products, whether as principal or agent;
- the trustee of such trust as the Authority may prescribe, when acting in that capacity; or
- such other person as the Authority may prescribe
An institutional investor is defined as :
- the Government;
- a statutory board as may be prescribed by regulations made under section 341;
- an entity that is wholly and beneficially owned, whether directly or indirectly, by a central government of a country and whose principal activity is —
- to manage its own funds;
- to manage the funds of the central government of that country (which may include the reserves of that central government and any pension or provident fund of that country); or
- to manage the funds (which may include the reserves of that central government and any pension or provident fund of that country) of another entity that is wholly and beneficially owned, whether directly or indirectly, by the central government of that country;
- any entity —
- that is wholly and beneficially owned, whether directly or indirectly, by the central government of a country; and
- whose funds are managed by an entity mentioned in sub‑paragraph
- a central bank in a jurisdiction other than Singapore;
- a central government in a country other than Singapore;
- an agency (of a central government in a country other than Singapore) that is incorporated or established in a country other than Singapore;
- a multilateral agency, international organisation or supranational agency as may be prescribed by regulations made under section 341;
- a bank that is licensed under the Banking Act 1970;
- a merchant bank that is licensed under the Banking Act 1970;
- a finance company that is licensed under the Finance Companies Act 1967;
- a company or co‑operative society that is licensed under the Insurance Act 1966 to carry on insurance business in Singapore;
- a company licensed under the Trust Companies Act 2005;
- a holder of a capital markets services licence;
- an approved exchange;
- a recognised market operator;
- an approved clearing house;
- a recognised clearing house;
- a licensed trade repository;
- a licensed foreign trade repository;
- an approved holding company;
- a Depository as defined in section 81SF;
- an entity or a trust formed or incorporated in a jurisdiction other than Singapore, which is regulated for the carrying on of any financial activity in that jurisdiction by a public authority of that jurisdiction that exercises a function that corresponds to a regulatory function of the Authority under this Act, the Banking Act 1970, the Finance Companies Act 1967, the Monetary Authority of Singapore Act 1970, the Insurance Act 1966, the Trust Companies Act 2005 or such other Act as may be prescribed by regulations made under section 341;
- a pension fund, or collective investment scheme, whether constituted in Singapore or elsewhere;
- a person (other than an individual) who carries on the business of dealing in bonds with accredited investors or expert investors;
- the trustee of such trust as the Authority may prescribe, when acting in that capacity; or
- such other person as the Authority may prescribe.
An accredited investor may be determined by the value of his/her/its assets or income.
An accredited investor includes the following:
- An individual
- Whose net personal assets exceed in value $2 million (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount;
- whose financial assets (net of any related liabilities) exceed in value $1 million (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount, where “financial asset” means —
- a deposit as defined in section 4B of the Banking Act;
- an investment product as defined in section 2(1) of the Financial Advisers Act; or
- any other asset as may be prescribed by regulations made under section 341; or
- a deposit as defined in section 4B of the Banking Act;
- whose income in the preceding 12 months is not less than $300,000 (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount;
- Whose net personal assets exceed in value $2 million (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount;
- a corporation with net assets exceeding $10 million in value (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe, in place of the first amount, as determined by —
- the most recent audited balance-sheet of the corporation; or
- where the corporation is not required to prepare audited accounts regularly, a balance-sheet of the corporation certified by the corporation as giving a true and fair view of the state of affairs of the corporation as of the date of the balance-sheet, which date shall be within the preceding 12 months;
- the most recent audited balance-sheet of the corporation; or
- the trustee of such trust as the Authority may prescribe, when acting in that capacity; or
- such other person as the Authority may prescribe."
- An individual