Accredited Investor Details
Accredited Investors - Individuals
Individuals are considered accredited investors in Canada as long as they meet any of the following net worth or asset criteria:
- An individual who has a before tax income of over $200,000 for at least two years in a row ($300,000 if combining income with a spouse) and expects to exceed that income in the current calendar year
- An individual, alone or with a spouse, who has net assets of more than $5 million
- An individual who, either alone or with a spouse, benecially owns aggregate financial assets of more than $1,000,000, before taxes but net of any related liabilities
- A person registered in Canada, under securities legislation, as a dealer or an adviser
How to become an accredited investor in Canada
There is a common misconception that a process exists for an individual to become an accredited investor—this isn’t the case. No government agency or independent body reviews an investor’s credentials, and no certification exam or piece of paper exists that states a person has become an accredited investor. You simply need to meet the income or net worth criteria outlined in the section above.
Do you have to prove you’re an accredited investor?
In short, the burden of proving that you are an accredited investor in Canada does not fall on you but rather the investment vehicle you choose to invest in.
While it’s necessary for an individual to meet certain wealth guidelines to be an accredited investor, no federal agency or regulatory board verifies that you have met said criteria or issues permits or licenses certifying your status as an accredited investor.
Rather, the investment vehicle—such as a fund, start-up, or online platform you choose to invest in—has to confirm your status as an accredited investor by doing their due diligence prior to the sale of any assets. At a minimum, you’ll be expected to provide documentation such as financial statements, credit reports, or tax returns, to prove your income and/or net worth.
