Accredited Investors
For residents of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Price Edward Island, Newfoundland and Labrador, Northwest Territories and Nunavut For the purposes of a subscription for Units of the Trust(s), an investor will be considered to be an “accredited investor” if the investor is one of the following;
(a) an individual , either alone or with a spouse, who beneficially owns, directly or indirectly, financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds CAD1,000,000. For the purpose of this test, “financial assets” means cash, securities or a contract of insurance, a deposit or evidence of a deposit that is not a security for purposes of securities legislation, and “related liabilities” means liabilities incurred or assumed for the purpose of financing the acquisition or ownership of financial assets or liabilities that are secured by financial assets;
(b) an individual with net pre-tax income greater than CAD200,000 (or CAD300,000 together with spouse) in each of the two most recent calendar years and, who, in either case, reasonably expects to exceed that net income level in the current calendar year;
(c) a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer, other than a person registered solely as a limited market dealer under one or both of the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador)
(d) a company or other entity wholly-owned by Accredited Investors (except, in jurisdictions other than Ontario, voting securities required by law to be owned by directors);
(e) a corporation, limited partnership, limited liability partnership, trust or estate, other than a mutual fund or non-redeemable investment fund, with net assets of at least CAD5 million as reflected in its most recently prepared financial statements; or
(f) other than in Ontario, a person or company trading as agent on behalf of a fully managed account if that person or company is registered or authorized to carry on business under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction as a portfolio manager or under an equivalent category of adviser or is exempt from registration as a portfolio manager or the equivalent category of adviser.
The above are common categories of Accredited Investor but there are additional ways to qualify as an Accredited Investor. The full details of the regulatory definition of Accredited Investor are more fully set out in the certificate which a subscriber is required to sign and deliver with the subscription agreement.
