Absolutely! As an investment advisor, you can purchase CoPower Green Bonds as a private placement on behalf of client(s) with fully managed accounts.
Here are a few of the most common questions we receive from advisors.
Q: Can I hold CoPower Green Bonds in a client's registered account?
Yes, CoPower Green Bonds are eligible to be held in most registered accounts.
Q. Does my client need to be an accredited investor in order for me to be able to purchase CoPower Green Bonds on their behalf?
No, CoPower Green Bonds are available to all types of private investors in the following categories:
- There are many categories of accredited investors, the ones we most commonly encounter are individuals that have: (i) either $200,000 in annual income, or $300,000 in annual income together with their spouse, in either case for each of 2018, 2019 and 2020, or (ii) $1,000,000 in financial assets.
- An eligible investor is a person that has: (i) at least $75,000 in annual income, or $125,000 in annual income with their spouse, in either case for each of 2018, 2019, and 2020 or (ii) $400,000 in net assets.
- A “public investor” has less than $75,000 in annual income or $125,000 in annual income with their spouse and less than $400,000 in net assets.
Q. How much will I be able to invest on behalf of a client?
CoPower follows the structure set out to us by the securities regulators, which implements the following limits for each type of investor :
- Accredited Investors and Permitted Clients; no investment limit unless a suitability assessment suggests otherwise
- Eligible Investors; $100,000 per year, though in some cases only $30,000 per year
- Public Investors; $10,000 investment per year
Q. What internal requirements may my firm request of me?
Each investment advisor should check with their firm's compliance department and internal policies and procedures for private placements. In our experience, firms generally require the following:
1. The client is qualified under an applicable prospectus exemption - the client may be an accredited investor or an investor that is not an accredited investor who is otherwise qualified under an applicable prospectus exemption.
2. The client’s KYC indicates investment knowledge that is “good” or “sophisticated” and their risk tolerance is consistent with the risk level of the investment.
3. Your firm will likely require a certain threshold of assets to be able to facilitate the purchase of a private placement. This varies by institution. Please check with your firm’s policies and procedures to understand the differences between investments that require all investors to be accredited investors for regular private placements and requirements for securities such as CoPower Green Bonds that do not require investors to be accredited investors.
Q. What documents will I need to facilitate an investment on behalf of a client?
Please consult your firm's compliance department and internal policies and procedures
Below are the typical requirements we’ve heard from previous advisors:
- A copy of the offering documents.
- Subscription Agreement
- Each Financial Institution will have Application / Certification forms that apply
- Risk Acknowledgement and Exempt Market Securities Release forms for unsolicited purchases
- Specific approvals from your Branch Manager or National Sales Departments may be needed.