In Australia, a wholesale investor is a person or entity that meets specific legal criteria under the Corporations Act 2001, allowing them to access investments that are not available to retail investors.

Financial qualification criteria

An investor generally qualifies as a wholesale investor if one or more of the following apply:

• Asset test: The investor has net assets of at least AUD $2.5 million
• Income test: The investor earned AUD $250,000 or more per year (before tax) for the last two financial years

These thresholds must be certified by a qualified accountant.

Other ways an investor may qualify:

An investor may also be classified as wholesale if they:

• Invest AUD $500,000 or more into a single investment
• Are a professional investor, such as:
  • Financial services licensees
  • Banks or insurers
  • Superannuation trustees
• Are a large or institutional investor

What wholesale investor status means

Wholesale investors:

• Receive fewer regulatory protections
• Are not required to be given a Product Disclosure Statement (PDS)
• Have access to a broader range of investments, including many direct and unlisted funds
• Are expected to assess risks independently