What associations come when the word “qualification” is mentioned? It is used to indicate the level of knowledge and skills that allows you to qualitatively engage in certain activities and achieve good results in this matter. And this fully corresponds to the role in which qualified investors are located. Who are they? What are they doing? Who recognizes them as qualified? Here is a short list of issues that will be addressed in the article.
general information
Qualified investors are persons who are engaged in financial and economic activities involving investments in assets that a limited number of people have access to. Why is everything so arranged? Someone explains this with conspiracy theories, but in fact it’s simple - there are high-risk securities on the market that require certain theoretical training, skills and, most importantly, experience. And a person who is rumored to know about them can buy at high interest. But since they have a high risk, it is likely to lose their investments. And this can lead to depression, blaming others, and possibly suicide. To prevent this from happening and there is a need to allocate securities intended for qualified investors who understand all the possible consequences, and not just the probability of winning. Consider carefully all the possibilities of such an acquisition.
About features
What gives recognition to qualified investors? This status is the basis for:
1. Free circulation of securities of foreign companies that are not placed in the public space of the Russian Federation.
2. Acquisition of securities limited in circulation. This is an investment in hedges, mutual funds, venture funds, as well as in structures engaged in direct investment and working with real estate.
So these are preferred participants in securities trading. What are their features? The most important thing is the availability of education, skills and experience. All this serves as the basis for securities trading. At the same time, numerous investment tools are used that are not accessible to ordinary people. But besides this, they also have much better protection of their rights. True, this is implemented along with additional responsibilities. Let’s go through the specific advantages, namely, which securities have access to:
1. Russian companies that are issued abroad.
2. Securities are less regulated.
3. Foreign companies.
4. You can trade in securities that were not admitted to public offering.
It should be noted that in practice such a separation is more a plus than a minus. After all, professional investors can trade securities with other persons who know their business. It also protects beginners and inexperienced participants from assets that are difficult or impossible to understand, evaluate and parse for risks.
How to get this status?
So, we have already figured out that this is very good. And the question becomes relevant - how to become a qualified investor? Both individuals and legal entities can obtain this status. The main thing in this matter is to comply with the requirements established by law. If we talk about an individual, then for him it is:
1. Own assets worth more than six million rubles.If the investment portfolio is smaller, then, alas, you will have to forget about the status.
2. Experience in the organizational structure that deals with securities trading. If she has the status of a qualified investor, then the period is two years, in all other cases - three.
3. The number of transactions over the past year was not less than ten.
4. The presence of higher economic education, as evidenced by a state document.
5. The presence of a specific certificate and certificate. As an option - CIIA, FRM and CFA for the first case, and a specialist in the financial market, insurance actuary and a qualified auditor in the second.
If we talk about a legal entity, then there are such requirements:
1. The cost of investment equity should exceed two hundred million rubles.
2. The number of transactions for the last quarter is not less than five.
3. The value of own assets should exceed two billion rubles. As confirmation, data from the accounting report are used.
4. The price of transactions for the last year should be at least three million rubles.
5. Revenues for the period of work must be at least 1 000 000 000 r.
About accreditation and registry
But all this is not enough to come to a fund for qualified investors and start trading. It is also necessary to pass accreditation. Fortunately, this procedure is not complicated and can be carried out by authorized market participants, in the role of which are brokerage companies, financial institutions and the like. It consists in checking for compliance with established criteria. For this, a personal interview or certification of supporting documents is conducted. If the result is positive, then the person is entered in the register of qualified investors. It is transferred to the appropriate federal service.
What are they different
Qualified investors in Russia can be of the following types:
1. The central bank.
2. Management companies.
3. Non-state pension funds.
4. International financial organizations.
5. Investment funds with a joint stock company.
6. Deposit Insurance Agency.
7. Persons who have received the status of a qualified investor thanks to paragraph 2 of Art. 51 of the Federal Law "On the Securities Market".
8. Insurance and credit organizations.
9. Brokers.
10. Dealers.
Despite this diversity, they have one common limitation associated with securities. But only foreign, and only with those who are not allowed to appeal in the Russian Federation. Namely - it is necessary to comply with paragraph 14 of Art. 51.1 of Law No. 39-ФЗ On the Securities Market.
About risk
Engaging in investments is a business that can lead to both income and loss of savings. If we talk about individuals, then high similar requirements are established not in vain. Securities for qualified investors have increased risks that need to be studied competently, taking a break and processing a large amount of information. All this is offset by significant returns. But inexperienced, inexperienced people can act without looking at possible problems. And this very quickly leads to impoverishment and bankruptcy. Which, of course, is unprofitable for the state. And in order to avoid such a sad development of events, a restriction was created. And only experienced people can work with these tools, who more or less know the value of money in the financial and stock markets.
Separate features upon receipt
Before entering into qualified investors, you must make sure that all requirements are met. Also, accreditation should not be regarded as a procedure that can be ignored. Although it is not difficult, but there were those who could not pass it. Therefore, it is necessary to prepare for it. For example, having made sure that all the documentation complies with the requirements, you have not forgotten anything and you can count on success when going for the status.
Conclusion
Each person should improve, study, become more and more fit in this world. One way is to ensure your own financial independence. All great begins with small. If there is no way to get into the cohort of qualified investors, then you can start with something simple. For example, from deposits. If this level has already been passed, then you can pay attention to government bonds of domestic loans or securities issued by banks. Options come true - a lot. The main thing is to start with something and act reasonably, taking into account objective facts and not chasing large incomes. Indeed, in this case, the opportunity to get them is very illusory, while the risks are real. And you need to clearly understand what awaits.