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 without meeting the income or asset tests.
· Accountant’s certificate: An accountant may issue a certification if your personal or SMSF net assets exceed $2.5 million. However, this does not override the $10 million rule for services relating directly to superannuation.
Recommendations for SMSF Trustees
1. Review your current classification: If your SMSF has previously been treated as a wholesale investor, assess whether that status was based on a valid pathway.
2. Examine any financial advice received: Determine whether the advice related to a superannuation product. If it did, the $10 million rule likely applies.
3. Engage with your tax adviser and SMSF strategy accountant: Seek a written statement outlining the basis of any prior wholesale investor certification.
4. Don’t assume past status remains valid: The AFCA decision has created a new compliance lens. Relying on outdated interpretations may expose your SMSF to regulatory or civil risk.
5. Speak with your licensed financial adviser: Even if your SMSF no longer meets the $10 million or $2.5 million test, your adviser can issue a sophisticated investor certificate based on your investment knowledge and experience. This pathway may still allow access to wholesale investments despite recent regulatory changes.
Strategic Support from Westcourt
At Westcourt Family Business Accountants, we specialise in guiding SMSF trustees through complex regulatory frameworks. From reviewing trust deed structures to assessing investment classification pathways, we can help you stay compliant while preserving strategic investment flexibility.
If you’re uncertain about your wholesale investor status or want to explore how to structure your SMSF to optimise investment access, speak to our SMSF specialists today.
At Westcourt, we are qualified to sign off on wholesale investor certificates.
Click Here for Part 1: Is your SMSF a Wholesale Investor or not, and why it matters.
Click Here for Part 2: How to acquire a Wholesale Investor Certificate
Click Here for Part 3: Superannuation Fund’s Importance on Wholesale Investor Certificates
