Has anyone been registered for a 'Sophisticated Investor' certificate?
Just wondering what if any benefits there may be or otherwise.
Just wondering what if any benefits there may be or otherwise.
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The term sophisticated investor is used in the Corporations Act to describe a class of investor that can be offered securities without the usual product disclosure requirements that apply to everyday mum and dad investors.
To become a sophisticated investor, you have to acquire a certificate from a qualified accountant, stating that you have net assets of $2.5 million and/or that your gross income for the past two financial years has been at least $250,000 a year. That certificate must have been obtained within six months of accepting any wholesale offer to acquire securities.
Real investors dont care about spelling
I'm interested too.
Has anybody got onto good investments not open to the general public?
Look at Chapter 7 of the corporations act.
Having such a certificate may mean the normal compliance requirements may be reduced. - e.g. an offer of a financial product may not need a PDS.
I have with a few that were only available for sophisticated investors. As an example :
- investment in a public unlisted biotech firm, looks like they're on track to pass phase 3 trials in the next few months and should be listed within next 6 months. I'm expecting 500% gains when it lists and think there's a good chance it will grow strongly from there
- 3 rounds of raising for an online gaming /ggambling company, 3rd round is happening atm. Again I expect it to list late this year and hopefully see some scent gains
These tend to be riskier investments but opportunities that the general population wouldn't get exposed to.
Thanks Sanj.
I'd be willing to punt my super bankroll on this kind of stuff, perfect investments for play money.
I'm not sure what's allowed, but I'd guess you could invest this stuff from a SMSF, if you have the sophisticated certificate in personal names?
I will consider these types if it can be done via Super.
Youre welcome and Yup can be done via smsf.
these are definitely riskier investments so you have to be comfortable with that and able to lose money without losing the plot (some people struggle with losing money). with the gaming company I thought it was going to end up a dud investment as it floundered for a while but looks like it's coming good and should see some good gains.