Accredited Investor Regime

Overview

The Monetary Authority of Singapore has recently implemented legislative amendments aimed at enhancing regulatory safeguards for investors. The criteria for an investor to qualify as an AI has been refined and with effect from 8 April 2019, the introduction of an opt-in regime will provide investors the option of electing for AI status.

For more information, please refer to Frequently Asked Questions (FAQ).

Regulatory Changes

What are the regulatory changes to the "Accredited Investor" ("Al") regime and when will it be effective?
The Monetary Authority of Singapore has recently implemented legislative amendments aimed at enhancing regulatory safeguards for investors. The criteria for an investor to qualify as an AI has been refined and with effect from 8 April 2019, the introduction of an opt-in regime will provide investors the option of opting in for AI status.

How do I qualify for AI status?
The prescribed AI criteria is as follows:

¹ An individual's primary residence refers to where the individual lives in most of the time and —

• is to be calculated by deducting any outstanding amounts in respect of any credit facility that is secured by the residence from the estimated fair market value of the residence; and
• is taken to be the lower of the following:
  - the value calculated under paragraph (1);
  - S$1 million.

² 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 Advisors Act, which includes securities, securities-based and other derivatives contracts, collective investment schemes, and life policies; or
• any other asset as may be prescribed by regulations made under section 341 of the Securities and Futures Act; or

³ Please refer to Question 7 for the criteria for joint account holders to qualify for AI status.

What supporting documents should I submit for AI eligibility assessment?
The supporting documents required may include the following:

Can I use my insurance policies as proof of financial assets?
Yes, you can by using the estimated surrender value of the policies. You can request from the insurers/online portal to provide a statement with estimated surrender value of your policies.

What does it mean if I opt in to be an AI?
AIs are assumed to be better informed and better able to access resources to protect their own interests, and therefore require less regulatory protection. Investors who agree to be treated as AIs therefore forgo the benefit of certain regulatory safeguards. An AI generally has access to a wider range of financial products and services.

Investors should consult a professional adviser if they do not understand any consequence of being treated as an AI.

Please refer to Schedule 2 for a list of regulatory requirements we are exempted from when dealing with an AI.

Can I elect to have a different status for each of my accounts?

AI status is held on a per financial institution basis. If you opt in for AI status, this will be applied to all your CIMB Bank account(s) which are held in your name.

For accounts held jointly with a non-AI, the non-AI can opt in to be treated as an AI but only in respect of dealings through that joint account.

What is the criteria for my joint account to qualify for AI status?
If all joint account holders individually qualify and have opted in for AI status, all joint account holders may be treated as an AI in respect of dealings through that joint account. For accounts where one or more joint account holders are non-AI, the joint account may be treated as AI if:

• at least one joint account holder is an AI and has opted in to be treated as an AI; and
• all joint account holders opt in to be treated as AIs in respect of dealings through the joint account only.