Regulatory Info for Angel Investors in Australia

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What does “Wholesale Investor” mean?

You'll probably have heard (or will hear) the term wholesale investor quite a bit. Someone will say "this is for wholesale investors only".

Although there are actually 3 types of wholesale investors, most of the time, when people say wholesale, they actually mean sophisticated.

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.

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

Professional Investor

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: 

*Please note, many companies & syndicates 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.

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