What is the Financial Assets Test for Accredited Investors?

Accredited Investor Type (j): 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,

(j.1): an individual who beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $5 000 000,

View NI 45-106

CRITERIA:

• the investor, as an individual or together with a spouse, has liquid financial assets (after liabilities) of more than $1 million

• the issuer obtains a signed risk acknowledgement in prescribed form (Form 45-106F9) from the investor

INCLUDES:

Assets:

• cash

• securities

• moneys owing under an insurance contract (a claim about to be paid or cash surrender value of a whole life policy)

• deposit or an evidence of a deposit that is not a security

• investments including RRSPs, spousal RRSPs, GICs, alternative investments, investment accounts (but not including Group RRSPs)

• money held on the investors’ behalf by a trustee so long as the investor has control and gets the clear benefit of the money in the trust

Liabilities:

• loans, lines of credit, margin, or other obligations which are used to finance investments (any investments, not necessarily the investment in question)

EXCLUDES:

Assets:

• real estate

• automobiles, boats, other recreational vehicles

• other fixed assets

• Group RRSPs

Liabilities:

• mortgages, car loans, credit card debt

• any other obligations not used to finance investments

How do I get verified?