Investor Eligibility

Broadly, a client will be wholesale as defined by the Corporations Act if they satisfy either one of the below threshold tests:

  • Product value test: the value of the financial product or financial service is greater than $500,000.
  • The client satisfies either:
    • Assets test – having net assets of more than $2.5 million; or
    • Income test – having gross income of at least $250,000 per annum in each of the last two financial years.
  • Small business test: the consumer of the financial product or service is a business which is not a small business (i.e. a non-manufacturing business with more than 20 employees or a manufacturing business with more than 100 employees).
  • Professional investor test: this includes Australian Financial Services Licensees, Australian Prudential Regulation Authority regulated bodies, trustees of public superannuation funds and persons controlling at least $10 million.

Sophisticated Investor Criteria

Under section 761GA of the Corporations Act, clients who are unable to satisfy the above threshold tests may ask The SILC Group as an Australian Financial Services Licensee to certify them as a “sophisticated investor”. However, we must be satisfied that the clients has, amongst other things, sufficient financial literacy and the client must waive their right to certain consumer protections.

Investor Eligibility
Broadly, a client will be wholesale as defined by the Corporations Act if they satisfy either one of the below threshold tests:
  • Product value test: the value of the financial product or financial service is greater than $500,000.
  • The client satisfies either:
  • Assets test – having net assets of more than $2.5 million; or
    Income test – having gross income of at least $250,000 per annum in each of the last two financial years.
  • Small business test: the consumer of the financial product or service is a business which is not a small business (i.e. a non-manufacturing business with more than 20 employees or a manufacturing business with more than 100 employees).
  • Professional investor test: this includes Australian Financial Services Licensees, Australian Prudential Regulation Authority regulated bodies, trustees of public superannuation funds and persons controlling at least $10 million.
Sophisticated Investor Criteria
Under section 761GA of the Corporations Act, clients who are unable to satisfy the above threshold tests may ask The SILC Group as an Australian Financial Services Licensee to certify them as a “sophisticated investor”. However, we must be satisfied that the clients has, amongst other things, sufficient financial literacy and the client must waive their right to certain consumer protections.