One of the questions, which came to me in direct concerning the status of a qualified investor. They asked who a qualified investor is, what does this status give and how to get it. In today's post I will cover this topic..
Qualified Investor Qualified Investor
A qualified investor is a person, who has the right to make transactions with securities, inaccessible to a wide range of people (unqualified investors) on the stock exchange.
Such securities can be:
– #securities, which are not traded on the Moscow and St. Petersburg stock exchanges, including #ETF
– OTC securities - incomplete and whole lots of Eurobonds of Russian and foreign companies, structural notes, etc.;
– shares of some closed-end mutual funds: credit, direct investment, hedge funds, particularly risky (venture) investments and some real estate funds (#REIT)
– other securities, specially issued for qualified investors.
As you can see, this includes quite complex products, which involve increased risks. Therefore, these financial instruments are limited for purchase by the majority of small investors and in order to, to purchase them, one of the requirements must be met, that allow, actually, get the status of a qualified investor.
Among such requirements:
1. #Capital. The simplest thing is to have more than 6 million. rub. This includes all financial instruments - stocks, #bonds, other securities or just bank deposits. the main thing, so that these are exactly financial instruments, eg, just property won't fit.
2. Market activity. Make transactions on the stock exchange in the last year, so that the turnover is at least 6 million. rub., in this case, you need to make a minimum 1 deal per month and not less 40 transactions per year. With a broker's commission in 0,05% from the transaction, it will cost 3 000 rub.
These first 2 options, although not difficult, but i don't understand their logic. It turns out, even if the person does not have financial education and is not versed in investments, but he has funds or he can "wind up" his turnover, then he can become a qualified investor. I think, it's a little weird, how do you think? Write in the comments.
3. Experience. Have work experience in relevant organizations. During the last 5 years at least 2 years worked in the organization, having the status of a qualified investor, or not less 3 years in the organization, whose activities are related to securities.
4. Education. Higher education at the university, who could certify in the field of professional activity in the securities market. Here you can check with the broker, is your diploma suitable.
5. Qualification. This criterion implies the presence of at least one of the following documents:
– financial market specialist qualification certificate
– auditor's qualification certificate
– insurance actuary qualification certificate
– Financial Risk Manager certificate (FRM)
– сертификат Chartered Financial Analyst (CFA)
– сертификат Certified International Investment Analyst (NO)
To obtain these approvals or certifications, you need to pass the relevant exams. for example, I received the status of a qualified investor, having received a certificate of a financial market specialist from NAUFOR - National Association of Stock Market Participants. Do not rush to the account of the first 3 certificates, now they are being changed and new exams and certificates are being introduced, and the old ones are no longer held.
If you pass at least one of the listed criteria, you can get the status of a qualified investor. To do this, you need to contact your broker, request a status application, fill out and submit it with attaching copies of documents, confirming one of the criteria (diploma, certificate, brokerage account report, etc.).
After that, you will receive a notification about receiving the status.
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