Wholesale Investors

What is a Sophisticated, Professional or Experienced investor?

Sophisticated, professional or experienced are classifications used to describe investors that are more experienced and able to evaluate investment opportunities without needing a prospectus or other regulated disclosure documents. These investors are classified as Wholesale Investors. The Corporation Act 2001(Cth) outlines the eligibility criteria for each category of investor.

Detailed below are the requirements for each classification as required under section 708 of the Corporations Act 2001(Cth.)

Sophisticated Investor

• Have gross personal income over the last 2 years of at least $250k; or
• Have net assets of over $2.5m

To show that you are a sophisticated investor you need a Qualified Accountant’s Certificate. 

Professional Investor

• Hold an Australian Financial Services License (AFSL); or
• Have or control gross assets of at least $10m or more

To show that you are a professional investor you need an AFSL number or proof of assets.

Experienced Investor

An AFSL licensee is satisfied on reasonable grounds as described in Section 708(10) and s761GA of the Corporations Act 2001 (Cth.) that the person to whom the offer is made has previous experience in investing in securities that allows them to assess:

• the merits of the offer
• the value of the securities
• the risks involved in accepting the offer
• their own information needs
• the adequacy of the information given by the person making the offer

Please note, any Company may decide to only offer new shares to investors who are classified as sophisticated or professional, but not offer them to investors who are classified as experienced.

If you have any questions about any of the content on this page, please contact us at contact@anadara.com.au.