With the rising number of high-net-worth individuals growing in Singapore, the Monetary Authority of Singapore (MAS) has introduced a clear distinction between retail and accredited investors. This move aims to expand access to private investment opportunities, especially those with higher return potential. If you’re a foreign investor, a startup founder or an established business owner navigating capital markets, you may be wondering: What exactly is an accredited investor, and why does it matter? This comprehensive guide will explore what it means to be an accredited investor, how to qualify, and the key benefits and responsibilities that come with this status.

Let’s dive in.

What is an Accredited Investor?

An accredited investor in Singapore is someone who meets the specific criteria set by the MAS, demonstrating a certain level of financial capability or investment experience. This typically includes individuals with high income, significant net worth or professional expertise in financial matters. Given that only accredited investors are allowed to invest in private security opportunities, it’s crucial to distinguish between accredited investors and retail investors.

Accredited Investors vs Retail Investors

At first glance, both accredited and retail investors are performing the same function – investing. So, what’s the difference? The difference lies in access, experience and regulation.

Retail investors are individuals investing their own money, typically through brokerage firms or investment advisors. They usually invest in publicly available products, such as stocks, bonds, and mutual funds. These investors often have less financial experience and limited access to high-risk or high-return opportunities. As such, they are protected by stricter regulations, including the requirement for MAS prospectuses and the licensing of intermediaries.

Accredited investors, on the other hand, have access to a broader range of private investments. Think hedge funds, venture capital, and private equity real estate deals. These investment options offer higher potential returns but also carry higher risks. This is because accredited investors are seen as more financially savvy, and regulatory safeguards are more lenient. Which means they can invest in offerings without prospectuses or the need for licensed intermediaries.

These are the key differences between being onboarded as an accredited investor compared to a retail investor.

Why Knowing This Matters for High-Net-Worth Individuals

For high-net-worth individuals, knowing the difference between an accredited investor and a retail investor is a strategic advantage. It enables you to make decisions that can unlock access to exclusive investment opportunities and private market investments, such as online car marketplace Carro and e-commerce platform Carousell, which are typically off-limits to retail investors.

This privileged access comes with the assumption that you have the financial experience and resources to assess complex risks, which is why they require less regulatory protection. While being an accredited investor sounds compelling, with its benefits including early access and higher return potential, it also requires due diligence and awareness of the risks involved.

If you’re ready to explore the full spectrum of private asset opportunities, obtaining the accredited investor status is a prerequisite. Next, let’s move on to how do you become an accredited investor.

How to become an Accredited Investor in Singapore

After understanding the meaning of an accredited investor, you may consider becoming one. To verify as an accredited investor in Singapore, you will need to follow these steps:

Step 1: Verify financials (net worth, income, assets)

You will need to evaluate your assets, income and net worth to ensure that you meet the necessary qualifications.

Step 2: Documentation needed: bank statements, reports

Once you’ve confirmed that you meet the Singapore accredited investor qualification, the next step is to get certified. This involves submitting supporting documents, such as bank statements, statements of CPF or life insurance policy and proof of income, including tax returns and payslips.

Step 3: Self-certification process & MAS filings

Singapore residents can become an accredited investor without the need for additional documentation. During the onboarding process, your income information can be automatically retrieved from SingPass MyInfo. However, this convenience is not available for eligible clients seeking to verify their status as an accredited investor based on their net worth.

Investment platforms or banks that you choose to invest with will review your submitted documents to confirm your eligibility.

Common Mistakes in the Qualification Process

Some individuals stumble during the process of qualifying as an accredited investor in Singapore due to common mistakes, such as overvaluing their primary residence, miscalculating income by including their spouse’s earnings, or misinterpreting the criteria for each qualification category.

To navigate this with confidence, it’s advisable to consult a financial professional who can accurately assess your eligibility. At Lanturn, our dedicated team of funding experts understand the Singapore investment market and is here to guide you through the process, ensuring your calculations are transparent, compliant and complete.

What can Accredited Investors Do?

In other words, what can accredited investors invest in? As an accredited investor, it changes the way you interact with financial products and institutions. In this case, you can invest in high-growth private equity, venture capital, hedge funds, and early-stage startups, as well as sophisticated strategies that can lead to potentially higher returns and increased diversification.

Benefits & Responsibilities of Being Accredited

One of the key advantages of being an accredited investor is access to a broader range of investment products and strategies. These resources enable you to diversify your portfolio, manage risks in a more sophisticated manner, and access investments with the potential for higher returns.

Access to exclusive opportunities and deals

Accredited investors often have access to a broader range of investment opportunities, including private equity, venture capital, hedge funds and other alternative investments. Furthermore, they may have the opportunity to participate in private placement of securities, unlocking early access to high-growth potential ventures.

But with greater opportunity comes greater responsibility. Accredited investors are considered sophisticated, knowledgeable, and financially resilient, which means they must conduct thorough due diligence on any investment opportunities.

Accredited Investor Singapore – Criteria & Regulation

Here are the criteria and regulations for being accredited as investors in Singapore:

IRAS & MAS definitions in 2025

An accredited investor in Singapore is defined as an individual or entity that meets the criteria set by MAS, granting them access to exclusive investment opportunities, such as unregistered private securities offerings.

Net worth, income, and asset thresholds

To qualify as an accredited investor, you must fulfil at least one of these requirements:

• Net personal assets exceeding S$2 million (or equivalent in foreign currency), with a maximum of S$1 million from your primary residence
• Net financial assessment exceeding S$1 million (equivalent in foreign currency)
• Annual income of at least S$300,000 (or equivalent) in the preceding 12 months
• Hold a joint account with an accredited investor in respect of dealings through that joint account

In 2019, MAS introduced an opt-in regime where investors must explicitly consent to be regarded as accredited. Any individual who has chosen to be treated as an accredited investor can withdraw their consent at any time by providing written notice.

For corporations with net assets exceeding S$10 million, you can also qualify as an accredited investor.

Alternatives for Those Who Are Yet to Be Accredited

Now, what if you’re a high-net-worth individual who hasn’t been accredited yet? Don’t worry! There are still ways to get involved and start your journey towards unlocking premium investment opportunities. Here’s how:

Angel Networks or Crowdfunding platforms

This alternative investment channel connects seasoned investors with high-potential early-stage companies. For instance, AngelCentral, one of Singapore and Southeast Asia’s leading networks. Investors not only gain access to funding opportunities but also mentorship and networking opportunities. Crowdfunding platforms, on the other hand, open doors to non-accredited investors, making it more inclusive than ever for startups to receive support.

Waiting Path: Growing Income/Net Worth & Staged Accreditation

Patience is key, especially to growing your wealth. Whether you are aiming to increase your net worth or long-term growth, there are plenty of investment options to help you reach your goals. From unit trusts and Exchange Traded Funds (ETFs) to Singapore Real Estate Investment Trusts, these strategies can play a powerful role in contributing to the growth of your wealth and network over time.

Hybrid Options: Family Offices, Co-Investment Vehicles

Co-investing offers a smart and strategic way to get involved. Instead of investing directly in a private equity fund, investors, especially family offices, can choose to invest alongside the fund in a specific portfolio company. Some family offices even team up with other families to co-invest in promising businesses, pooling their resources and insights to achieve a greater impact and shared success.

Empowering Individuals in Their Business Journey

Becoming an accredited investor is not for the faint-hearted. It’s a strategic move for those with the financial knowledge, confidence, and appetite to navigate higher-risk investments. While the rewards can be greater, including access to exclusive opportunities not available to the general public, the risks are also significantly higher than those associated with traditional investment options in Singapore. But if you’re ready to take bold steps in growing your wealth, don’t let challenges hold you back. At Lanturn, our team of experts is here to support you every step of the way – from assessing your eligibility to helping you make smart, strategic investment decisions. Ready to explore the next level of investing? Speak to us today.