Sophisticated investor Australia.

What is a sophisticated investor? And how do you become one?

Lion Property Group offer a variety of wholesale investment products that are suitable for a sophisticated investor Australia as well as wholesale investors from around the world.

  • The term "sophisticated investor" is defined by the Corporations Act 2001.
  • The Act also defines "retail" and "wholesale" investments.
  • Only sophisticated investors are able to invest in wholesale investments.

Sophisticated investor

The Corporations Act 2001 defines two types of investment offers: retail and wholesale. By law, everyone is considered a retail client by default. To be eligible for wholesale investment offers, you must be a ‘sophisticated investor.’

This distinction between retail and wholesale investments is to protect investors who are making financial and investment decisions. When engaging with retail investors, advisers and investment companies must fulfil additional compliance regulations. Retail investors are also protected by Future of Financial Advice (FOFA) reforms. Compliance with these regulations restricts the types of investments that can be offered to retail investors.

On the other hand, wholesale investors are considered experienced enough to be able to make their own investment decisions without the protections that are extended to retail investors. It is assumed that wholesale investors are able to apply an appropriate degree of discretion, scrutiny, and discrimination when evaluating an investment.

Sophisticated investor
Australia requirements.

According to Section 708(8)(c), to be classified as a sophisticated investor, an individual must obtain a certificate from a qualified accountant stating that the individual has received a gross annual income surpassing $250,000 for the last two financial years or has over $2,500,000 in net assets. The term ‘sophisticated investor’ also applies to a company or trust that is controlled by an individual fulfilling the requirements of Section 708(8)(c).

A qualified accountant is defined as members of the Chartered Accountants Australia and New Zealand or the Institute of Public Accountants. The certificate is valid for a period of two years, after which another certificate must be provided.

An individual can also be considered a sophisticated investor Australia if they have a statement from an Australian Financial Services licensee acknowledging that that individual has suitable experience to assess the features of the offer. However, this does not apply to general insurance, RSA, or superannuation products.

Passive income

Rising interest rates and the cost of goods hurting your budget?

Counteract inflation and rising interest rates with a little extra income in your bank account each and every month.

By investing in our projects, you’ll receive a distribution of 1% each month, which goes a long way to boosting your passive income.

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Check out our latest offer.

All the information you need about our latest opportunity.
  • 12% per annum return
  • Distributions paid monthly
  • Capital secured against real estate
  • Bonus profit share upon completion
  • Targeted 36 month term
  • Pro rata returns if delayed