Important Information on Accredited Investor (AI) Regime

Regulatory Changes

1. What are the regulatory changes to the “Accredited Investor” (“AI”) regime and when will it be effective? How will these affect me?

The Monetary Authority of Singapore 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 7 April 2019, the introduction of an opt-in regime will provide investors the option of electing for AI status.

DBS is required to independently assess the AI eligibility of its clients. For the criteria and supporting documents to qualify as an AI, please refer to Questions 2 and 3 respectively.

2. How do I qualify for AI status?

The prescribed AI wealth or income thresholds are 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 S$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 .

Corporations

  • Net assets exceed S$10 million (or its equivalent in a foreign currency)4 ; or
  • Entire share capital is owned by one or more persons, each of whom is an AI.

Entity (other than a corporation)

Net assets exceed S$10 million (or its equivalent in a foreign currency)

Partnership (other than limited liability partnership)

Each partner is an AI

Trustee of Trust, when acting in that capacity where

  • Trust property exceeds $10 million in value (or its equivalent in a foreign currency); or
  • All beneficiaries of the trust are AIs; or
  • All settlors are AIs and have settlor reserved investment powers and revocation powers.
3. What supporting documents should I submit for AI eligibility assessment?

The supporting documents required may include the following:

Qualification for Accredited Investors (AI) Status
Individuals / Joint Accounts / Partnership

For NPA / NFA5 :

  • Latest bank statements
  • Bank reference letter

For net equity of property:

  • Property or land title deed
  • Valuation report
  • Mortgage loan

For income:

  • Salary slip
  • Latest Notice of Assessment or overseas tax authorities’ returns
  • Letter from employer certifying individual’s income in the preceding 12 months
  • Confirmation from tax adviser or accountant on individual’s income in the preceding 12 months
Corporations
  • Latest financial statements (audited or certified by a Director)
  • Where all shareholders are AIs, please refer to the section on “Individuals” above.
Entity (other than a corporation)
  • Latest financial statements (audited or certified by a Director or equivalent officer)
Trustee of Trust
  • Declaration from professional trustee
  • Latest bank statements or bank reference letter
  • Where all beneficiaries or settlors are AIs, please refer to the section on “Individuals” above.
4. What does it mean to be an AI?

An AI generally has access to a wider range of financial products and services.

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. For example, issuers of securities are exempted from issuing a full prospectus registered with the Monetary Authority of Singapore in respect of offers that are made only to AIs, and intermediaries are exempted from a number of business conduct requirements when dealing with AIs. Investors should consult a professional adviser if they do not understand any consequence of being treated as an AI.

For details on the relevant regulatory requirements which we will be exempted from when serving you as an AI, please refer to go.dbs.com/sg-accreditedinvestor

5. What does it mean to be a non-AI?

Generally, a non-AI has access to a limited range of financial products and services as compared to those available to an AI.

For DBS Private Bank and Treasures Private Client

If you do not opt in for AI status, DBS will be required to treat you as a Non-Accredited Investor (“Non-AI”) from 7 April 2019. There may be limitations on new investment products that we may offer to you as a non-AI.

For DBS Treasures

If you do not opt in for AI status, we will be required to serve you as a Non-AI from 7 April 2019. There may be limitations on the new investment products that we may offer to you. However, we shall continue to provide services to you for your existing investments.

6. Can I elect to have a different status for each of my accounts with DBS?

AI status is held on a per financial institution basis. If you opt in for AI status, this will be applied to all DBS account(s) which are held in your name.

The only exception is in respect of Non-AIs who maintain joint accounts with at least one (1) account holder who is an AI. For such cases, if there is at least one (1) AI individual account holder, the non-AI account holders may opt in to be treated as an AI but only in respect of dealings through that joint account. Refer to Question 7 for more details.

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:

  1. at least one joint account holder has been assessed to meet the AI-eligibility criteria and has opted in to be treated as an AI; and
  2. all joint account holders opt in to be treated as AIs in respect of dealings through the joint account only. You may opt in for your joint account by contacting your Relationship Manager .

Opt In Request

8. How do I opt in to be treated as an AI?

If you meet the pre-requisites to qualify as an AI and would like to opt in to be treated as an AI for your account(s), please:

  1. Submit supporting documents (refer to Question 3); and
  2. Complete and return the accompanying Application to Opt-In to Accredited Investor Status.

Alternatively, you may contact your Relationship Manager who would be able to assist you with the opt in request. DBS will assess your AI-eligibility and notify you when your opt in request has been successfully processed.

Existing AI - Opt Out Request

9. How do I opt out of the AI status?

Existing AI clients may opt out of the AI status at any time. If you are an existing AI and wish to opt out of the AI status, please complete and return the accompanying Request to Opt-Out of Accredited Investor Status. Do note DBS may take approximately 14 days to process your request. DBS will notify you once your request has been processed and your investor status has been updated in DBS’ records. Until such time, you would still be considered an AI.

Existing AI (CLIENTS)

10. DBS has informed me that I have been assessed to be an AI. What else am I required to do?

Unless you opt out of AI status, DBS may continue serving you as an AI. DBS will continue to independently assess your AI eligibility periodically to ensure your AI eligibility remains updated.

Notification and Updates

11. How will I know if my opt in / opt out request has been processed? How long will DBS take to process my request?

DBS may take approximately 14 days to process your request. DBS will notify you once your request has been processed and your investor status has been updated in DBS’ records.