Definition
What is Accredited Investor (US analog)?
A US Securities and Exchange Commission category roughly equivalent to the NZ FMCA wholesale-investor pathways. NOT a formal NZ classification.
The "accredited investor" status comes from US Securities and Exchange Commission Rule 501 of Regulation D. It is widely referenced in international investment marketing materials but has no formal counterpart in New Zealand law.
US Rule 501 criteria (relevant for context only): - Net worth exceeding US$1 million excluding primary residence, OR - Income exceeding US$200,000 (individual) or US$300,000 (joint) in the prior two years, OR - Specific professional licences (Series 7, 65, 82, etc.).
NZ equivalents in the FMCA 2013 Schedule 1: - "Large person" pathway (Clause 3(2)(b)) — NZ$5M net assets or turnover for two consecutive prior accounting periods. - "Investment business" pathway (Clause 3(2)(a)) — for entities whose principal business is investment. - "Eligible investor" pathway (Clauses 38-40) — experience-based with mandatory confirmer step.
The thresholds and qualifying mechanisms differ between the two regimes; a US-accredited investor is not automatically wholesale under NZ law and vice versa.
Cross-border investment implications: US-domiciled funds marketed to NZ-resident accredited investors may run into NZ FMCA Schedule 1 issues if the offer is not also structured as wholesale-eligible under NZ rules. Conversely, NZ wholesale managers seeking US capital must navigate Reg D / Reg S rules separately from FMCA compliance. Always seek NZ legal advice on cross-border offerings.
Related Terms
Wholesale Investor
An investor who meets specific criteria allowing access to investment products not available to the general public.
Sophisticated Investor
A non-statutory term sometimes used to describe investors who can demonstrate investment experience comparable to the FMCA Schedule 1 eligible-investor pathway.
Eligible Investor
A category of investor who has been certified by a financial advisor as understanding investment risks.
Official Resources
Educational Content Disclaimer
This glossary provides general educational information only and does not constitute financial, legal, or tax advice. Definitions and explanations are simplified for educational purposes and may not cover all aspects or nuances of each term.
Before making any investment decision, you should seek independent advice from appropriately qualified professionals. Wholesale Investor does not recommend or endorse any particular investment, strategy, or fund manager.