Professional Investor Definition

There are numerous definitions of the term ‘accredited’ or ‘professional’ investor. The Glacex definition of the term “Professional Investor” is as follows: 

Professional investor" means a person in relation to whom one or more of the following paragraphs apply:

    1.    the person is a financial services licensee;

    2.    the person is a body regulated by a recognised Regulatory Body (such as the SEC in the USA or the FCA in the UK),

    3.    the person is the trustee of a superannuation fund, an approved deposit fund, a pooled superannuation trust, a public sector superannuation scheme, and the fund, trust or scheme has net assets of at least $10 million;

    4.    the person controls at least $10 million (including any amount held by an associate or under a trust that the person manages);

    5.    the person is a listed entity, or a related body corporate of a listed entity;

    6.    the person is an exempt public authority;

    8.    the person is a body corporate, or an unincorporated body, that:

    1.    carries on a business of investment in financial products, interests in land or other investments; and

    2.    for those purposes, invests funds received (directly or indirectly) following an offer or invitation to the public, the terms of which provided for the funds subscribed to be invested for those purposes.

 

Note: Each Regulatory Body has their own definition

Example sources: www.SEC.gov, www.FitchRatings.com