What is a wholesale investor, and how is that different from a retail investor?
A wholesale investor is one the Corporations Act treats as not needing retail-level disclosure. Everyone else is retail.
The commonly used tests under sections 761G and 708:
- Product value - the amount paid for the product is at least $500,000
- Net assets or income - net assets of at least $2.5 million, or gross income of at least $250,000 in each of the last two financial years, certified by a qualified accountant on a certificate valid for two years
- Professional investor - an AFSL holder, a regulated body or an entity controlling at least $10 million
- Sophisticated investor - an AFSL holder is satisfied the investor has the relevant experience, with written reasons and the investor's acknowledgement
Being wholesale means you receive an Information Memorandum rather than a PDS and TMD, and you lose some retail protections. The certificate is the accountant's to give, not the fund's and not ours.
Factual and educational information only. Nothing on this page is financial product advice, a recommendation, or a Shariah ruling. Consider your circumstances and the product's disclosure documents, and seek licensed advice and qualified scholarly guidance before acting.