Are You Wholesale or Not?

You Can Find Out Here...*

There are three terms in Investing, which have a similar meaning:

a. Wholesale Investor

b. Sophisticated Investor

c. Accredited investor

These are three names used for an investor who has special status under financial regulation laws.

For the remainder of this walkthrough, we’ll use the term Wholesale Investor as the primary term.

The financial regulations for a wholesale investor are different depending on where you live.

Below is an alphabetical list of countries, to briefly explain each regulation:

Australia:

Your accountant needs to issue a certificate stating that you meet the criteria prescribed in the Corporations Regulations 2001, namely net assets of at least $2.5 million, or a gross income for each of the last 2 financial years of at least $250,000.

And/or if you have a Self Managed Super Annuation (SMSF) Fund.

Canada:

If you’re a Canadian, you have the most definitions outlined to explain if you’re eligible or not.

Click here to visit a detailed walkthrough for you: Especially for Canadians

European Union:

If you have:

  • carried out trade transactions, in significant size (at least EUR 50,000), on the relevant market at an average frequency of 10 per quarter over the previous four quarters;
  • the size of your financial  portfolio, defined as including cash deposits and financial instruments, exceeds EUR 500,000; or
  • you work or have worked in the financial sector for at least one year in a professional position which requires knowledge of the transactions or services envisaged.

New Zealand:

New Zealand legislation states in the Financial Markets Conduct Act (2013), the following:

As a wholesale investor, you are excluded from aspects of the Act if you meet this relevant criteria: FMCA2013-Exclusions for Wholesale Investors

Clients we work with usually fall under one of two clauses in that exclusion, those being:

2. A person is a wholesale investor if—

(b) the person meets the investment activity criteria specified in clause 38

or

3. A person is also a wholesale investor, in relation to an offer of financial products, if—

(a) the person is an eligible investor (see clause 41);
 
 

Singapore:

In Singapore, it’s defined in Section 4A(1)(a) of the Securities and Futures Act (SFA), Chapter 289, as:

  • NET Personal assets exceeding SGD 2 million (or equivalent in foreign currency), or
  • Income in preceding 12 months of not less than SGD 300,000 (or equivalent in foreign currency), or
  • A corporation with net assets exceeding $10 million in value (or its equivalent in a foreign currency) 

United States:

At the time of writing JAS Trader service is not being offered in the USA. We are working on setting up with the NFA and associated bodies in the US. If you are interested and would like us to keep you updated, click here: For our friends in the US

* Important Note: All the above is a guide only. It is not legal advice. Ask your Accountant in your Country for clarification. 

External Reference: The information above was summarised from the entry in Wikipedia, last edited in May 2018, which has references to each of the relevant country financial regulations. You can find that original source here: Wikipedia

Which best describes you now?:

I'm not Eligible

If you’re not able to invest in a Wholesale/Accredited/Sophisticated fund, click here for additional options:

Already Know This Is Right For You?

If you’ve been referred and you’re just looking to get started, then get in touch with us here: