Who is a qualified investor?

Qualified investor is a status defined in capital markets legislation. Banks, portfolio management companies, insurance companies, pension funds and similar institutional investors fall within it directly.

The status says nothing about an investor's experience or their record. It states that they meet the conditions the legislation sets for access to certain capital markets instruments.

For individuals the test is documenting to an investment institution that they hold financial assets of the amount set out in the legislation. That amount is determined by the Capital Markets Board and revised from time to time.

The investment institution being applied to states the current threshold and the papers it requires; the status is granted once those papers have been assessed.

The status is granted on application to an investment institution and on producing the documents the legislation requires. Because the conditions can change with the legislation, the status should be confirmed as current before an investment decision.

Which investors a fund is offered to, on what terms its participation units may be bought and sold, and where the fund currently stands are all set out in its official documents.