Following the Swiber debacle, many wealthy (sorry, formerly wealthy) Singaporeans are regretting their decision to become accredited investors. From all appearances, it seems accredited investors are just people that banks (or private funds) can push into buying high-risk products. So what is the accredited investor status, and should you use it just because you can have it?
What is an accredited investor?
An accredited investor is someone with at least $2 million in net worth (including property assets, which can account for a total of up to $1 million in determining net worth), or an income of at least $300,000 in the last 12 months. This is, broadly speaking, also the definition of a high net worth individual (HNWI) in the local context.
Accredited investors are assumed to be better able to handle investment risks and are thus exempt from certain protections. When it comes to retail investors (i.e. …