Part 4: Other Pathways to Wholesale Investor Status
Additional Pathways to Wholesale Investor Status SMSFs may still achieve wholesale classification through legitimate alternatives: · $500,000 investment: Making a single investment above this threshold can qualify you as wholesale under section 761GA. · Sophisticated investor certificate: A licensed financial adviser, or investment advisor, may assess you as having sufficient financial experience to qualify, even […]
Part 3: Superannuation Fund’s Importance on Wholesale Investor Certificates
Special Rule for Superannuation Funds The Corporations Act includes a specific provision for superannuation funds. Where a SMSF receives an advice on a superannuation product, it is a retail client unless the superannuation fund has net assets of at least $10 million (s761G(6)) This $10 million rule caused confusion. In 2014, ASIC issued Media Release […]
Part 2: How to acquire a Wholesale Investor Certificate
There are several prerequisites to receive a Wholesale Investor Certificate. Wholesale Clients and the Corporations Act An SMSF can be a wholesale investor if it satisfies the tests under sections 708 and 761G of the Corporations Act, including: · Net assets of at least $2.5 million; or · Gross income of at least $250,000 per […]
Part 1: Is your SMSF a Wholesale Investor or not, and why it matters.
Is a wholesale investor certificate necessary? The wholesale investor rules apply only to financial products and financial services. This includes managed investment schemes, securities, superannuation products, and derivatives. These rules do not apply to direct investments in non-financial assets, such as residential or commercial real estate, collectables, crypto currency (sometimes) or personal business acquisitions. For […]
How to manage a SMSF when a member wants to leave
Self-managed-superannuation-funds offer a range of benefits including cost savings, flexibility in investment choice and the ability to act at short notice. However, there can be times when a member of an SMSF wants to leave. The member might be divorcing, a child who wants control of their own fund, or a difference of view about […]