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Sophisticated / Wholesale / Professional Investors

Sophisticated/Wholesale/Professional Investors
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Under ASIC regulations, an issue of securities to the public normally requires a disclosure statement/prospectus to ensure participants are fully informed about the securities being offered. As a result of this, many investment opportunities are unavailable to retail investors.
There are a number of classifications of individuals whom, under the Corporations Act, do not need the same level of protection as retail investors.
These include:
Sophisticated Investors
Professional and Experienced Investors
The exemption for these persons recognizes that certain investors are able to protect their own investment interests without regulatory protection. Thus, by gaining classification as one of these investment types, you will be able to access a wider range of investment options.
What is a Sophisticated Investor?
To be recognized as a Sophisticated (Wholesale) Investor, you must meet one of the following characteristics as identified in subsections 708(8) to 708(20) of the Corporations Act:
Net Assets of at least $2.5 million; or
Gross Income for each of the last 2 financial years of at least $250,000 p.a.
A superannuation fund may also be eligible if it has:
Net Assets of at least $10.0 million.
Please download and get your accountant to complete the following forms:
Sophisticated Investor Certificate – Individual or Company
Sophisticated Investor Certificate – Superannuation Fund
What are Professional and Experienced Investors?
To be recognized as a Professional Investor, you need to meet one or more of the 10 characteristics defined by section 9 of the Corporations Act. To find out if you qualify as a Professional Investor, download the following form which outlines relevant criteria:
Professional Investor Certificate
If you believe you are classified as an Experienced Investor under Section 708(10) of the Corporations Act, please download and complete the following form:
Experienced Investor Certificate
Sophisticated Investor and MDA Program:
Being in the MDA program is not the same as being a Sophisticated Investor.
However, an individual in the MDA program may fit the characteristics of a Sophisticated Investor, and thus be eligible to apply.
By gaining classification, you will be able to access an even wider range of investment options.

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