Who is a Qualified Institutional Buyer ("QIB") or Accredited Investor?

Under United States law, a QIB is a company that manages at least US$100M of securities on a discretionary basis or is a registered broker-dealer investing at least US$10M in non-affiliate securities. A QIB can trade privately placed securities with other qualified institutional investors under SEC Rule 144A, which provides a safe harbor exemption from SEC registration. 

An Accredited Investor, is a term used by the USA Securities and Exchange Commission (SEC) under Regulation D to refer to investors who are financially sophisticated and have a reduced need for the protection provided by certain government filings. In order for an individual to qualify as an accredited investor, he or she must accomplish at least one of the following:

  • earn an individual income of more than US$200,000 per year, or a joint income of US$300,000, in each of the last two years and expect to reasonably maintain the same level of income. 
  • have a net worth exceeding US$1M, either individually or jointly with his or her spouse. 
  • be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.
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