updated over 2 years ago
User needs to confirm Wholesale Investor status to purchase security tokens.
s5 of the Securities Act (1978) defines a sophisticated investor in NZ for the purposes of subsection (2CC)(a), a person is wealthy if an independent chartered accountant certifies, no more than 12 months before the offer is made, that the chartered accountant is satisfied on reasonable grounds that the person (a) has net assets of at least $2,000,000; or (b) had an annual gross income of at least $200,000 for each of the last 2 financial years. There is a further section that follows stating that an experienced investor is one who has satisfied a financial investor that they meet certain criteria.
To meet the criteria of a Wholesale Investor an investor must:
- The User's net assets, combined with the assets of entities the User controls, exceeded $5 million for the 2 most recent financial years; OR the total turnover of the User and the entities the User controls exceeded $5 million for the 2 most recent financial years.
- The User owns, or at some time during the last 2 years has owned, a portfolio of "financial products" of a value of at least $1 million. Financial products include debt securities, equity securities, managed investment products, and derivatives.
- The User has, during the last 2 years, carried out 1 or more transactions to acquire "financial products" where the amount payable under those transactions (in aggregate) is at least $1 million and the other parties to the transactions were not associated with the User.
- Within the last 10 years the User has been employed in an investment business and, for at least 2 years during that 10 year period, the User participated in the investment decisions made by that investment business.
- The User's principal business is: investing in financial products; providing a financial adviser service in relation to financial products; or providing a broking service in relation to financial products; or the User is in the business of trading in financial products on behalf of other people
- The User is an eligible investor, and an individual is qualifies as an eligible investor if: Investor makes this certification in relation to an offer of financial products or a class of such offers, available to wholesale investors, and certifies as follows: The User has previous experience in acquiring or disposing of financial products, which allows the User to assess:The merits of the offer/transaction (including assessing the value and the risks of the financial products involved);The information needs in relation to the transactions; andthe adequacy of the information provided by any person involved in the transaction.The User understands the consequences of certifying themselves to be an eligible investor;The User understands that as an eligible investor, they will not necessarily have the same protections and remedies afforded under New Zealand law to retail investors;The User states the grounds upon which they make this certification; andThe User has an authorized financial advisor, a qualified statutory accountant, or a lawyer sign the written confirmation of certification after they are satisfied that the User has been sufficiently advised on the consequences of providing that certification and has no reason to believe that the certification is incorrect or that further information or investigation is required as to whether or not the certification is correct.
Any documents showing that the User meets the requirements.