What is an accredited investor?
An accredited investor is:
- An individual with a net worth of minimum $1 million
- A director, executive officer, or general partner of the company selling the securities
- A business in which all the equity owners are accredited investors
- A charitable organization, corporation or partnership with assets exceeding $5 million
- A bank, insurance company, registered investment company, business development company, or small business investment company
- A trust with assets of at least $5 million, not formed to acquire the securities offered, and whose purchases are directed by a sophisticated person
- An individual with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year
For more information, please see the Ontario Securities Commission’s Rule 45-802.