What Is an Accredited Investor?

What Is an Accredited Investor?

An accredited investor is an individual or a corporation (wholly owned by an individual) who is also referred to as a sophisticated investor.

To qualify as an “accredited investor,” you must meet specific criteria outlined in the appendix of the Securities Law. These criteria focus on your financial status, the value of your liquid assets, and your annual income.

According to the Securities Law, an accredited investor is defined as an individual who meets one of the following conditions:

  • The total value of their liquid assets exceeds 8,364,177 ILS.
  • Their annual income in each of the last two years exceeds 1,254,627 ILS, or the annual income of their household exceeds 1,881,940 ILS.
  • The total value of their liquid assets exceeds 5,227,610 ILS, and their annual income in each of the last two years exceeds 627,313 ILS, or their household income exceeds 940,969 ILS.
  • The total equity of corporations fully owned by the individual, based on their latest audited financial statements, exceeds 8,364,177 ILS.

If you’d like further clarification or have any questions about these requirements, feel free to contact us.

Criteria for Accredited Investors

To Be Classified as an Accredited Investor, You Must Meet One of the Following Three Criteria:

Option 1

8 Million ILS

Liquid Assets

Option 2

1.2 Million ILS

Individual Income

or

1.8 Million ILS

Household Income

Option 3

5 Million ILS

Liquid Assets

900,000 ILS

Household Income

or

5 Million ILS

Liquid Assets

600,000 ILS

Individual Income

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Accredited Investor

Join as an Accredited Investor

In the attached link, you will find a detailed form that you need to complete in order to join Realco Real Estate’s accredited investor database.

Accredited Investor Declaration Form

***Regarding this detail:

“Liquid Assets” – Cash, deposits, and financial assets as defined in the Securities Law, traded on the stock exchange.
“Household” – An individual and their family members living with them or dependent on one another for financial support.
The amounts specified in this section will change on January 1st of every third year starting from the commencement of this order (hereinafter – the update date), according to the percentage change in the new index compared to the base index. For this purpose:

“The Index” – The Consumer Price Index published by the Central Bureau of Statistics.
“The New Index” – The index published most recently before the update date.
“The Base Index” – The index published in December 2015.