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Included within the definition of the Commodity Exchange Act Rule §4.7 of "Qualified Eligible Person(s)" are participants who fall within any of the following categories and who meet the "Portfolio Requirement". For these purposes, the "Portfolio Requirement" means a person or entity that (i) owns securities of issuers not affiliated with such person or entity and other investments (e.g.., real estate held for investment purposes) with an aggregate market value of at least $2,000,000, (ii) has on deposit with a futures commission merchant at least $200,000 in exchange-specified initial margin and option premiums for commodity interest transactions, or (iii) owns a portfolio comprised of a proportionate combination of (i) and (ii) (e.g., $1,000,000 in securities and $100,000 in margin and premiums).
- A natural person whose individual net worth, or joint net worth with that person's spouse,
at the time of opening of an exempt account exceeds $1,000,000.
- A natural person who had an individual income in excess of $200,000 in each of the two
most recent years or joint income with that person's spouse in excess of $300,000 in each
of those years and has a reasonable expectation of reaching the same income level in the
current year.
- A pool, trust, insurance company separate account or bank collective trust, with total assets
in excess of $5,000,000, not formed for the specific purpose of opening an exempt account,
and whose participation in the exempt account is directed by a qualified eligible person.
- A corporation, Massachusetts or similar business trust, or partnership, other than a pool,
which has total assets in excess of $5,000,000, and is not formed for the specific purpose of
opening an account.
- An investment company registered under the Investment Company Act of 1940, as
amended (the"Investment Company Act") or a business development company as defined
in section 2(a)(48) of the Investment Company Act not formed for the specific purpose of
opening an exempt account.
- A bank as defined in section 3(a)(2) of the Securities Act of 1933, as amended (the
"Securities Act") or any savings and loan association or other institution as defined in
section 3(a)(5)(A) of the Securities Act acting for its own account or for the account of a
qualified eligible person.
- An insurance company as defined in section 2(13) of the Securities Act acting for its own
account or for the account of a qualified eligible person.
- A plan established and maintained by a state, its political subdivisions, or any agency or
instrumentality of a state or its political subdivisions, for the benefit of its employees, if
such plan has total assets in excess of $5,000,000.
- An employee benefit plan within the meaning of the Employee Retirement Income Security
Act of 1974, as amended ("ERISA"); provided, that the investment decision is made by a
plan fiduciary, as defined in section 3(21) of ERISA, which is a bank, savings and loan
association, insurance company, or registered investment adviser; or that the employee
benefit plan has total assets in excess of $5,000,000; or, if the plan is self-directed, that
investment decisions are made solely by persons that are qualified eligible persons.
- A private business development company as defined in section 202(a)(22) of the
Investment Advisers Act of 1940, as amended (the "Investment Advisers Act").
- An organization described in section 501(c)(3) of the Internal Revenue Code of 1986, as
amended (the "Code"), with total assets in excess of $5,000,000.
Also included within the definition of "Qualified Eligible Person(s)" are clients who fall within any of
the following categories without need of meeting the Portfolio Requirement:
- An FCM or a principal thereof;
- A broker or dealer registered pursuant to section 15 of the Securities Exchange Act of
1934, as amended, or a principal thereof;
- A commodity pool operator registered pursuant to section 4m of the CEA, or a principal
thereof; provided, that the pool operator either: (a) has been registered and active as such
for two years; or (b) operates pools which, in the aggregate, have total assets in excess of
$5,000,000;
- A commodity trading advisor registered pursuant to section 4m of the CEA, or a principal
thereof; provided, that the trading advisor either: (a) has been registered and active as such
for two years; or (b) provides commodity interest trading advice to commodity accounts
which, in the aggregate, have total assets in excess of $5,000,000 deposited at one or more
futures commission merchants;
- An investment adviser registered pursuant to section 203 of the Investment Advisers Act or
pursuant to the laws of any state, or a principal thereof; provided, that the investment
adviser either: (a) has been registered and active as such for two years; or (b) provides
securities investment advice to securities accounts which, in the aggregate, have total assets
in excess of $5,000,000 deposited at one or more registered securities brokers;
- A "qualified purchaser" as defined in section 2(51)(A) of the Investment Company Act;
- A trust; provided, that: (a) the trust was not formed for the specific purpose of opening an
exempt account; and (b) the trustee or other person authorized to make investment
decisions with respect to the trust, and each settlor or other person who has contributed
assets to the trust, is a qualified eligible person;
- An organization described in section 501(c)(3) of the Code; provided, that the trustee or
other person authorized to make investment decisions with respect to the organization, and
the person who has established the organization is a qualified eligible person;
- A non-United States person;
- An entity in which all of the unit owners or participants are qualified eligible persons.
source: Commodity Futures Trading Commission (CFTC)
The U.S. federal securities laws define the term "Accredited Investor" in Rule 501 of Regulation D as:
A natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or A natural person who has individual net worth, or joint net worth with the person's spouse, that exceeds $1 million at the time of the purchase; A bank, insurance company, registered investment company, business development company, or small business investment company; An employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million; A charitable organization, corporation, or partnership with assets exceeding $5 million; A director, executive officer, or general partner of the company selling the securities; A business in which all the equity owners are accredited investors; A trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.
source: Securities and Exchange Commission (SEC)
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Strategic Investment Pool