What is a wholesale investor?
Background
We primarily work with wholesale investors, also known as sophisticated or professional investors.
Pursuant to the Corporations Act, investors can only access deals without a prospectus or regulated disclosure document if you are deemed to be 'sophisticated' or 'professional' under the Act.
Investors that qualify are able to invest in opportunities such as pre-IPO, placements and entitlement issue sub-underwritings. Wholesale investors may also secure an allocation in an IPO ahead of the offer being made available to the public.
Qualifying investors
Below is a summary of what constitutes a sophisticated or professional investor:
Sophisticated investor; s708(8) of the Corporations Act
You have:
- Personal income over the last 2 years of at least $250k; or
- Net assets of $2.5m or more.
Professional investor; s708(11) of the Corporations Act
You:
- Hold an Australian Financial Services License (AFSL); or
- Have or control gross assets of at least $10m or more
Obtaining an s708 certificate
If you believe that you meet the requirements, all you need to do is get a verified s708 certificate from your accountant. Click here to access our s708 certificate template.