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What is a wholesale investor in Australia, and how do I qualify?

Short answer: A wholesale client under the Corporations Act can invest in products offered to institutions and high-net-worth investors without a retail disclosure document. The usual ways to qualify: net assets of at least A$2.5 million, or gross income of at least A$250,000 in each of the last two financial years, confirmed by a qualified accountant's certificate; or investing at least A$500,000 in a single product. Unlisted bank and corporate bonds in Australia are mostly offered to wholesale investors only.

The main tests

Test Threshold Evidence
Net assets At least A$2.5 million Qualified accountant's certificate, valid two years
Gross income At least A$250,000 in each of the last two financial years Qualified accountant's certificate, valid two years
Product value At least A$500,000 invested in one product The investment itself
Professional investor Controls at least A$10 million, or holds an AFS licence Evidence of the assets or licence
Sophisticated investor Assessed by a licensee as experienced enough The licensee's written assessment

29 of the 360 AUD bonds on Candour Capital's range have a minimum of A$500,000 or more.

Who can hold the investment

Individuals, companies, trusts and SMSFs can all be wholesale clients. A certificate can cover a company or trust controlled by a person who meets the test; your accountant can confirm what applies to you.

Why it matters

Wholesale offers come without a retail product disclosure statement, so you rely on the term sheet and offer documents and need to understand the risks yourself. The thresholds are set by law and may change; meeting them does not make an investment suitable.

Related

General information only. It does not take into account your objectives, financial situation or needs and is not a recommendation. Investment opportunities through Candour Capital are for wholesale and professional investors only. Read the offer documents and seek professional advice before investing.