Definition and Requirements of Accredited Investors
What is an Approved Accredited Investor?
An accredited investor is a person or a company that has been granted permission to deal in securities that are not registered with the financial regulators. They have privileged access by fulfilling at least one requirement concerning their income, assets, size of their assets, governance status, or professional experience.
In the USA, the term accredited investor is used by the Securities and Exchange Commission (SEC) under Regulation D to refer to financially sophisticated investors and have a reduced need for the protection provided by regulatory disclosures. High-net-worth individuals (HNWIs), banks, insurance firms, brokers, and trusts are all examples of accredited investors.