Are you An Accredited Investor? Find Out Below!

To be an Accredited Investor you would need to meet one of the requirements below:
  • a) an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000; (or)
  • b) an individual whose income before taxes exceeded $200,000 in each of the 2 most recent calendar years or whose income before taxes combined with that of a spouse exceeded $300 000 in each of the 2 most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year; (or)
  • c) an individual who, either alone or with a spouse, has net assets of at least $5,000,000;
To be an Eligible Investor under the Offering Memorandum Exemption you would need to meet one of the below requirements:
  • a) an individual who, either alone or with a spouse has net assets of at least $400,000; (or)
  • b) an individual whose income before taxes exceeded $75,000 in each of the 2 most recent calendar years or whose income before taxes combined with that of a spouse exceeded $125,000 in each of the 2 most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year

If you are an institution, corporation, or other legal entity, read below for more qualification rules. Or visit the OSC website.

Accredited investor and permitted client definitions

(Note: all permitted clients are accredited investors)

Accredited investor: Individual

  • an individual registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer, other than an individual registered solely as a limited market dealer under one or both of the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador); or
  • an individual registered or formally registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (1); or
  • an individual who, either alone or with a spouse, beneficially owns, directly or indirectly, financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000; or
  • an individual whose net income before taxes exceeded $200,000 in each of the two (2) most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two (2) most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year; or
  • an individual who, either alone or with a spouse, has net assets of at least $5,000,000.

Accredited investor: Corporations and other legal entities

  • a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements; or
  • an investment fund that distributes or has distributed its securities only to:
    • a person that is or was an accredited investor at the time of the distribution;
    • a person that acquires or acquired securities in the circumstances referred to in sections 2.10 Minimum amount investment and 2.19 Additional investment in investment funds of NI 45-106: or,
    • a person described in paragraph (i) or (ii) that acquires or acquired securities under section 2.18 Investment fund reinvestment of NI 45-106; or
  • an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Quebec, the securities regulatory authority, has issued a receipt; or
  • a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors; or
  • an investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser; or
  • a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, the regulator as an accredited investor.

Permitted Client: Individuals

  • an individual registered under the securities legislation of a jurisdiction of Canada as an adviser, investment dealer, mutual fund dealer or exempt market dealer; or
  • an individual acting on behalf of a managed account managed by the individual, if the individual is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction; or
  • an individual who beneficially owns financial assets, as defined in section 1.1 of National Instrument 45-106 Prospectus and Registration Exemptions, having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $5 million.

Permitted client: Corporations and other legal entities

  • a Canadian financial institution or a Schedule III bank; or
  • the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada); or
  • a subsidiary of any person or company referred to in paragraph (1) or (2), if the person or company owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of the subsidiary; or
  • a person or company registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer, other than as a scholarship plan dealer or a restricted dealer; or
  • a pension fund that is regulated by either the federal Office of the Superintendent of Financial Institutions or a pension commission or similar regulatory authority of a jurisdiction of Canada or a wholly-owned subsidiary of such a pension fund; or
  • an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (1) to (5); or
  • the Government of Canada or a jurisdiction of Canada, or any Crown corporation, agency or a wholly-owned entity of the Government of Canada or a jurisdiction of Canada; or
  • any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government; or
  • a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l’île de Montréal or an inter-municipal management board in Québec; or
  • a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a managed account managed by the trust company or trust corporation, as the case may be; or
  • a person or company acting on behalf of a managed account managed by the person or company, if the person or company is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction; or
  • an investment fund if one or both of the following apply:
    • the fund is managed by a person or company registered as an investment fund manager under the securities legislation of a jurisdiction of Canada;
    • the fund is advised by a person or company authorized to act as an adviser under the securities legislation of a jurisdiction of Canada; or
  • in respect of a dealer, a registered charity under the Income Tax Act (Canada) that obtains advice on the securities to be traded from an eligibility adviser, as defined in section 1.1 of NI 45-106, or an adviser registered under the securities legislation of the jurisdiction of the registered charity; or
  • in respect of an adviser, a registered charity under the Income Tax Act (Canada) that is advised by an eligibility adviser, as defined in section 1.1 of NI 45-106, or an adviser registered under the securities legislation of the jurisdiction of the registered charity; or
  • a person or company that is entirely owned by an individual or individuals who are permitted clients[1], who holds the beneficial ownership interest in the person or company directly or through a trust, the trustee of which is a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction; or
  • a person or company, other than an individual or an investment fund, that has net assets of at least $25 million as shown on its most recently prepared financial statements; or
  • a person or company that distributes securities of its own issue in Canada only to persons or companies referred to in paragraphs (1) to (16).

Eligible investor definitions

Eligible investor: Individuals

  • an individual whose net assets, alone or with a spouse, exceed $400,000; or,
  • an individual whose net income before taxes exceeded $75,000 in each of the two (2) most recent calendar years and who reasonably expects to exceed that income level in the current calendar year; or,
  • an individual whose net income before taxes, alone or with a spouse, exceeded $125,000 in each of the two (2) most recent calendar years and who reasonably expects to exceed that income level in the current calendar year; or,
  • an accredited investor; or,
  • a person described in section 2.5 of NI 45-106, Family, friends and business associates; or
  • a person that has obtained advice regarding the suitability of the investment and, if the person is resident in a jurisdiction of Canada, that advice has been obtained from an eligibility adviser.

Eligible investor: Corporations and other legal entities

  • a person whose net assets exceed $400,000; or,
  • a person whose net income before taxes exceeded $75,000 in each of the two (2) most recent calendar years and who reasonably expects to exceed that income level in the current calendar year; or,
  • a person of which a majority of the voting securities are beneficially owned by eligible investors or a majority of the directors are eligible investors;
  • a general partnership of which all of the partners are eligible investors; or,
  • a limited partnership of which the majority of the general partners are eligible investors; or,
  • a trust or estate in which all of the beneficiaries or a majority of the trustees or executors are eligible investors; or,
  • an accredited investor; or,
  • a person described in section 2.5 of NI 45-106, Family, friends and business associates; or
  • a person that has obtained advice regarding the suitability of the investment and, if the person is resident in a jurisdiction of Canada, that advice has been obtained.

Footnotes

[1] Under NI 31-103 a permitted client includes an individual who beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $5 million. Financial assets are defined in section 1.1 of NI 45-106 as: cash, securities, or a contract of insurance, a deposit or an evidence of a deposit that is not a security for the purposes of securities legislation.

Disclaimer

The contents of this Website do not constitute an offer of, or solicitation for, the purchase and sale of any securities under any circumstances. The information provided on this Website is for informational purposes only and should not be relied on for purposes of making any investment decision to purchase or sell securities. In making any such investment decision, investors should rely solely on information contained in the private offering memorandum and related subscription documents for the relevant Skyline Wealth funds. Sales of interests in any Skyline Wealth Fund are only made only to certain eligible investors pursuant to such private offering memorandum and related subscription documents. Such materials contain more complete information on the applicable Skyline Wealth investments, including fees and risk factors. Please read such materials carefully before making any investment. Prospective investors must make an independent assessment of such matters in consultation with their own professional advisors. Nothing in this Website should be construed as investment, legal, tax, regulatory or accounting advice. The performance and other information contained in this Website may be preliminary, subject to change, and does not constitute a complete description of our investment services or performance. Individual investor return will vary depending on timing of investment, eligibility of new issue income and fee structure. Past performance is not necessarily indicative of future results.