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 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.
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.
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.
Are you still on the fence about whether or not property development investing is right for you?
Let’s explore how our Profit Share model works and how your returns are calculated.
Don’t know what property development is, or how you can invest in one? Start here.
Privacy Policy | Terms & Conditions
Copyright © 2021 Lion Property Group Pty Ltd. All rights reserved.
