5D Who are eligible investors

(1)

A client is an eligible investor if—

(a)

the client certifies in writing that—

(i)

the client has sufficient knowledge, skills, or experience in financial matters to assess the value and risks of financial products; and

(ia)

the client has sufficient knowledge, skills, or experience in financial matters to assess the merits of the service or services to be provided (including to assess its value and the risks involved); and

(ii)

the client understands the consequences of certifying himself, herself, or itself to be an eligible investor (including that the competency standards and requirements of the code will not be applicable (if relevant) and that the financial adviser or broker may not be a member of an approved dispute resolution scheme); and

(b)

the client states the reasons for this certification; and

(c)

a financial adviser, a QFE, or a broker signs a written acceptance of the certification in accordance with section 5E.

(2)

A certification may be specific to a particular service or class of services or may be general (but is effective only in relation to services provided after all of the requirements of subsection (1)(a) to (c) are met).

(3)

A certification relating only to a discretionary investment management service or a broking service (or both) does not need to certify as to the matters referred to in subsection (1)(a)(i).

Section 5D: inserted, on 1 July 2010, by section 9 of the Financial Advisers Amendment Act 2010 (2010 No 40).

Section 5D(1)(a)(i): replaced, on 1 December 2014, by section 15 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 5D(1)(a)(ia): inserted, on 1 December 2014, by section 15 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).