A Retail Investor is any investor that does not meet the criteria of a Wholesale Investor.
A Wholesale Investor (a person or an entity) is defined in the Corporations Act 2001. Please refer to sections 708 (8)(c)(i)(ii), 708 (9), 708 (10)(d) and 708 (11) of the Act for more detail. Under the Corporations Act clients can be defined as wholesale if they meet one of the following requirements:
As defined under Section 9 of the Corporations Act, a professional investor may be:
- An Australian Financial Services Licensee
- A body regulated by APRA (other than a trustee of a super fund, approved deposit fund, pool superannuation trust, or a public sector superannuation fund)
- A body registered under the Financial Corporations Act 1974
- A trustee of a super fund, approved deposit fund, pool superannuation trust, or a public sector superannuation fund where the fund, trust or scheme has net assets of $10 million
- A person that controls at least $10 million (including an amount held by an associate or under a trust that the person manages)
- A listed entity or related body corporate of a listed entity
- An exempt public authority
- A body corporate or unincorporated body who invests in financial products, interests in land or other investments and invests fund received (directly or indirectly) following a public offering the terms of which provided for the funds to be invested for those purposes
- A foreign entity that would be covered by one of the above.
MyMoney Australia must confirm with the member which professional investor category applies to them by having the member complete the Professional Investor Declaration and obtain evidence that demonstrates that they meet the requirement.
Professional Investor Declaration Form (Click Here)
A Sophisticated Investor is defined in Section 708 (8) of the Corporations Act
A Sophisticated Investor must provide;
- A certificate given by a Qualified Accountant that they have net assets of $2.5 million and/or has gross income for the last 2 financial years of at least $250,000
The certificate to be completed by a Qualified Accountant and to be uploaded to the MyMoney website
A member of MyMoney will then check the document and change your investor status to Wholesale Investor. Once changed you will be advised by email that you are now a Wholesale Investor.