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What is the difference in an Offering Memorandum for an Accredited Investor and an Offering Memorandum for a Qualified Eligible Participant?
Asked by Christian Matthews

Hi there, I live in Toronto, Canada and I have been asked to find the differences between an Accredited Investor and a Qualified Eligible Participant (QEP). Also, I'm being asked to find out if the Offering Memorandum for an Accredited Investor is different from an Offering Memorandum for a QEP. I can't seem to find out any information at all on this. Would you be able to supply with what the differences are if any or where I might go to find this? Kind regards, Christian Matthews

Answer By Nicholas Roman

Accredited investors are certified to participate in financial transactions based solely on net worth and income. Qualified Eligible Participants are similar except they are assumed to have an in depth knowledge of the specific financial transactions or strategies. This allows certain hedge funds to avoid some regulations essentially assuming the QEP is more knowledgeable and aware in regards to the fund strategy.