1 00:00:05,600 --> 00:00:16,200 Although our usual presentations have a more practical orientation and they are including concepts that are aplicable in Greek market, 2 00:00:16,300 --> 00:00:21,100 in areas such Real Estate, Stock Market, and Business, today's presentation has different characteristics. 3 00:00:21,200 --> 00:00:26,000 It focus on areas that we are NOT allowed to invest. On certain investments that the law prohibites the general public to invest and these are only available to Accredited Investors. (AI) 4 00:00:26,100 --> 00:00:30,900 Why this is happening its actually the subject of today's presentation. Whatever questions you might have keep them for the Q&A section... 5 00:00:31,000 --> 00:00:50,400 at the end of this presentation. Please take some notes is you like but again keep your questions for the end. 6 00:00:50,500 --> 00:00:58,500 One last thing to have in mind is that in this presentation we will introduce some Finance terms. 7 00:00:58,600 --> 00:01:05,100 We will not go into details on this since this is an introductory seminar. 8 00:01:05,200 --> 00:01:14,500 (Nick, this one goes from left to the right?) 9 00:01:14,600 --> 00:01:19,400 (Fixing a small last minute technical problem) 10 00:01:19,500 --> 00:02:10,200 (Begining of presentation with Club's badges and music) 11 00:02:10,300 --> 00:02:21,000 First thing first. Why we should have an interest on investments that the law doesn't allow us to participate? 12 00:02:21,100 --> 00:02:31,000 Lets see after who are these High Net Worth Investors that are called "Accredited Investors". 13 00:02:31,100 --> 00:02:48,100 I dont think there is an exact tranlation of the term "Accredited Investors" in Greek, since there is not an exact equal term here. 14 00:02:48,200 --> 00:02:53,500 Next we will cover what kind of investment are Accredited Investors into, and of course why these investments are not allowed to ordinary investors. 15 00:02:53,600 --> 00:02:58,900 Finally we will have our Q&A session and I will try to answer as many of your questions I can. 16 00:02:59,000 --> 00:03:07,400 Ok lets see why we should care. One thing is that we will have a better understanding of Investments Triangle. 17 00:03:07,500 --> 00:03:14,600 As many of you might already know there is a well known triangle that is call the Maslow's Triangle, on which we can find... 18 00:03:14,700 --> 00:03:19,500 the hierarchy of houman needs. It starts with the basic biological needs and gradualy goes way up to needs for self-fullfilment. 19 00:03:20,400 --> 00:03:24,400 Somehow the same principle aplies to Investment Triangle. To make it simple lets say if your parents tought you as a fist lesson to start savings... 20 00:03:24,500 --> 00:03:35,200 ...then for sure your next lesson is not to be involved in Futures trading or Forex as an example. 21 00:03:35,300 --> 00:03:40,100 Every level comes with a certain experiance and requires higher and higher skills. So everything is under an Investment Triangle. 22 00:03:40,200 --> 00:03:47,600 The part we will cover today goes to the top of this Triangle. 23 00:03:47,700 --> 00:03:53,200 By seen this presentation you'll be able to have a better understanding what we are actually "teaching" in HCCA and in TACC... 24 00:03:53,300 --> 00:03:57,800 ...which is the difference between to be "Rich" and be "Financial Indepented"... 25 00:03:57,900 --> 00:04:02,700 ...since most of us we are mostly looking to achieve in life is to be Financial Independent. Which boiled down to not depending on our jobs income... 26 00:04:02,800 --> 00:04:13,600 ...as our only income and not to be Rich immediately. To be Rich is the second part of our goals but always requires the first to be in place. 27 00:04:13,700 --> 00:04:18,500 It not possible to be Rich if you are not Financialy Independent. 28 00:04:18,600 --> 00:04:26,900 The final reason is clearly to understand our clubs games which is the well known Cashflow 101 and Cashflow 202 (Rich Dad's Games). 29 00:04:27,000 --> 00:04:42,000 You will better understand the outter (Fast Track) cycle of the game since this is exactly the field of Accredited Investors in both CF-101 and CF-202. 30 00:04:42,700 --> 00:04:49,900 So lets see who these Accredited Investors are. "AI" as a shortform for the purpose of this presentation. 31 00:04:53,000 --> 00:05:16,700 The legal, statutory framework around the term AI started in USA with the US Securities Act of 1933/ codified 15 USC / 27-05-1933. 32 00:05:18,800 --> 00:05:35,400 In this statue included who is considered AI, what are the obligations of AI against various fiancial institutions and vise-versa, etc. 33 00:05:36,700 --> 00:06:00,300 Generally speaking an AI doesn't need the legal "protection" of an ordinary investor since he has the knowledge and the necessary capital for such investments. 34 00:06:00,400 --> 00:06:08,100 The reasoning behind this lawmaker logic here is that such combination of knowledge and capital on behalf of an AI is more than enough... 35 00:06:08,200 --> 00:06:14,000 ...to protect himself, and no further legal protection is nessessary for him. 36 00:06:16,400 --> 00:06:58,200 (A member of the audience adding some comments at this point, but all of them turns to be part of the remaining presentation)!!! 37 00:06:58,300 --> 00:07:33,300 Two AI categories are: 1) Individuals with Net Worth of at least $1,000,000, annual income $200.000 or family income $300,000. 38 00:07:33,400 --> 00:07:58,000 2) Corporations the limits are $5.000.000 AND all of their shareholders must be AI as individuals as well. 39 00:08:01,500 --> 00:08:06,000 Similar laws are in place in few juristictions other than USA. 40 00:08:06,100 --> 00:08:32,000 In EU there is the Pan-European Professional Client Classification. (MiFID=Markets in Fiancial Instruments Directive 2004/39/EC) (apl 2007/11/01). 41 00:08:32,100 --> 00:08:50,000 In UK we have the Certified High Net Worth Individual. (FSMA Finacial Services and Markets Act 2000) (aplied in 2004/01/01). 42 00:08:50,100 --> 00:08:57,100 We are seen most of European countries have a significant lag of 70 years after USA to form a law on this subject. 43 00:08:57,200 --> 00:09:05,000 Other juristictions like Pacific Rim countries, Australia, New Zealand and Japan have passed similar laws. Canada also have passed laws for AI. 44 00:09:07,200 --> 00:09:22,000 Now we have some non official sub-categories for AI. This are not part of a specific statue but they are important because some companies are offering... 45 00:09:22,100 --> 00:09:26,900 ...investment products based on those sub-categories. 46 00:09:27,000 --> 00:09:44,600 Here we have Low-End AI with Net Worth between $1.000.000-$5.000.000, Mid-Range AI with $5.000.000-$30.000.000 and High-End AI with > than $30.000.000 47 00:09:44,700 --> 00:09:55,000 So here as an example we might have a company that will not offer an investment product in an AI with 3.000.000 based on their internal marketing group... 48 00:09:55,100 --> 00:10:05,100 ...but cases like that tend to be rare and most of the companies due to competition are following the general minimum rules.