Wholesale Investor Definition

For the purposes of accepting applications into the Kaplan Master Trust funds, the following is a summary of who is considered a ‘wholesale’ client in accordance with Chapter 7 of the Corporations Act 2001:

Product value test

Where the initial amount paid by the investor at the time of investment in the fund is at least $500,000. The person will remain a wholesale investor even if their interest subsequently falls below $500,000.

For investment less than $500,000, the following tests apply:

Individual wealth test

The person has provided a certificate by a qualified accountant stating that the person has net assets of at least $2.5million or gross income for each of the last two financial years of at least $250,000. The certificate can be no more than six months old.

Professional investor test

The financial product is provided to a ‘professional investor’ which includes:

  • An Australian financial services licensee;
  • A body regulated by APRA outside of superannuation;
  • A body registered under the Financial Corporations Act 1974;
  • Trustees of superannuation funds, approved deposit funds, pooled superannuation trusts and public sector superannuation schemes under the Superannuation Industry (Supervision) Act 1993 with net assets of at least $10million;
  • A person who controls at least $10million.
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