What is a “wholesale investor”?

Because our residential syndicated property offer has some unique features, to subscribe to the offer you will need to qualify as a “wholesale investor”.

Wholesale investor is a term used in the Financial Markets Conduct Act 2013, to describe a person (or business) with a good understanding of different investment vehicles and how they work.

Am I a “wholesale investor”?

There are four ways to qualify as a “wholesale investor”: an eligible investor, large investor, investment business, or investment activity. You could qualify as:

  1. An eligible investor. This is someone who can demonstrate that they have enough experience in buying and selling financial products, that they’re able to make informed decisions about the benefits, risks and values of different investment types.

If you’re an eligible investor, you will understand the type of information you need before   making a decision to invest, and will be able to assess when you need to know more.

  1. Investment activity. You can show that within the past two years you’ve been involved in significant investment activity. This means you have owned a financial portfolio worth at least $1 million; or, you have carried out transactions to buy financial products worth $1 million or more.

Under the investment activity criteria you could also have worked for an investment business within the past ten years, and for at least two years during that time, been involved in investment decision-making.

  1. A large investor. Your net assets, or consolidated turnover over the past two financial years, is
    $5 million or more.
  1. An investment business. If you have a professional certification or experience that shows in-depth financial knowledge you could qualify under this criteria. For example, you could be an investment manager, registered financial adviser, broker, underwriter or licensed insurer.

If you qualify as a “wholesale investor” because you’re an eligible investor, then you will also need to supply a confirmation of certification which is completed by a lawyer, registered accountant or authorised financial adviser.

To find out more about “wholesale investors”, you can visit the Financial Markets Authority website here.

Published on Tuesday, March 14th, 2017, under Articles, Buying Property

Comments are closed.

Disclaimer  |  Privacy Policy  |  REAA Rules  |  Copyright © 2017 Erskine & Owen, All rights reserved. Licensed (REAA 2008)