Under Australian law, investors who meet the wholesale investor definition under the Corporations Act 2001 (Cth), can be classified as a 'wholesale client' or 'sophisticated investor'.
Typically, you can have your accountant provide a certificate to show that either have net assets over AU $2.5 Million or have an income above AU $250,000 for over 2 years.
Qualified sophisticated investors can access a wider range of investment opportunities that are not available to retail investors. In return, however, they do not benefit from all consumer protections rights made available to protect retail investors. These protections are what, typically, prevents retail investors from accessing these more complex or risky investment opportunities.
If you are unsure about whether becoming a qualified sophisticated investor is right for you, you should seek advice from your financial adviser or accountant.
This quiz has been provided for convenience to understand whether you may qualify as a 'wholesale client'.
However, we do not provide advice on whether you should become a sophisticated investor, nor whether you will actually meet the threshold. You must speak to a professional adviser in relation to these points.
Becoming a qualified sophisticated investor is relatively simple. You need to meet the eligibility threshold contained in the Corporations Act 2001 (Cth) and, if you intend on investing less than AU$500,000, obtain a sophisticated investor certificate from your accountant evidencing your eligibility.
Typically, to qualify, you need to show that you (or the entity investing) meets the eligibility criteria of:
You need a certificate from your accountant, dated within the last six months, proving you meet the asset or income test. Otherwise, you can invest AU$500,000 or more to avoid the need for an accountant's certificate.
To assist, we provide a template accountant’s certificate, which can be completed by your accountant.
In relation to a few select feeder funds listed in our investor portal, you may see that they are further restricted to “qualified purchasers”.
A “qualified purchaser” is a requirement at US law defined in the Investment Company Act 1940 (US). In broad terms, A “qualified purchaser” is
As we may create feeder funds into US-domiciled funds, it is important that each of our investor in the feeders relating to those funds meet the ‘qualified purchaser’ requirement, in addition to the ‘sophisticated investor’ definition at Australian law.
Please note, with these funds, we require all investors to provide a declaration that they meet the ‘qualified purchaser’ threshold (in addition to a certificate demonstrating they are a ‘sophisticated investor’). We cannot advise you on whether you meet the criteria to invest, nor should the above summary be relied on by you. You must speak with your accountant or professional adviser. The above is a summary only and there are particularly quirks in determining whether you satisfy the ‘qualified purchaser’ definition. A false declaration could lead to loss of your entire investment and liability.
All investments with Reach Alternative Investments require investors to be a qualified sophisticated investor. Therefore, to ensure you are eligible, follow these simple steps below:
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