• Accredited Investor Regime

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

  1. 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.

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

    Qualification for Accredited Investors (AI) Status
    Individuals
    • Net personal assets ("NPA") exceed S$2 million (or its equivalent in a foreign currency), but net equity of primary residence capped at S$1 million of the S$2 million threshold1 or

    • Net financial assets2 ("NFA") (net of any related liabilities) exceed S$1 million (or its equivalent in a foreign currency); or

    • Income in the preceding 12 months is not less than $300,000 (or its equivalent in a foreign currency); or

    • A person who holds a joint account with an accredited investor, in respect of dealings through that joint account3.
    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.

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

    Examples of supporting documents

    Individuals / Joint Accounts / Partnership

    For individuals
    • Latest bank statements
    • Latest CDP statements, custody holdings or share financing statements
    • Latest statements showing details of unit trusts held
    • Latest statements showing details of surrender value of insurance policies
    • Latest statements showing details of funds under management
    • Copy of title deed for properties and valuation report (dated within last 12 months) or latest loan statement
    • Latest Notice of Assessment
    • Letter of financial standing (dated within last 3 months) from any reputable Financial Institution

  4. 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.

  5. 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.

  6. 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.

  7. 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:

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


  8. EXISTING AI

  9. How do I opt out of the AI status?
    If you receive letter to inform that you are assessed to be an existing Al, we will serve you as AI till 8 July 2020. If you wish to opt out of the Al status any time before that, please complete the Opt Out form to us. Your request will be processed within 14 calendar days. We will notify you once your request has been processed and updated in our record.

     

  10. I have received a letter from CIMB Bank to inform that I have been assessed to be an AI, what do I need to do?
    To keep your AI status beyond 8 July 2020, you need to submit the Opt- In form attached with the letter. You may mail back the form or submit to your Relationship Manager and your request will be processed within 14 calendar days. We will notify you once your request has been processed and updated in our record.

    If you wish to opt-out of your AI status, please refer to Question 8.

  11. NEW AI

  12. Can I sign the Opt-In form on the day of account opening?
    On the day of your account opening, you will be provided with a set of AI “Opt in” documents. You may complete and submit the AI declaration form, Opt-In form and AI supporting documents to your Relationship Manager. (Please refer to Question 3 for the list of supporting documents).

    We will take 14 calendar days to process your AI opt-in request and you will be notified once your status is updated.

  13. What does it mean if I do not opt in to be an AI?
    Generally, a non-AI has access to a limited range of financial products and services as compared to those available to an AI.

    If you do not opt in for AI status, we will be required to treat you as a Non-Accredited Investor ("Non-Al") from 8 April 2019 and may not be able to offer certain products and services to you.