Jarra offers unique investment opportunities to wholesale investors. In this blog we discuss the meaning of ‘wholesale investor’, the qualification process, and what you need to provide as evidence when investing with us.
Wholesale Investors
Australian law recognises that some investors have the financial experience or capacity to assess investment opportunities without the same level of regulatory protections required for retail investors. These investors are classified as wholesale investors under the Corporations Act 2001 (Cth).
Qualification as a Wholesale Investor
There are several pathways to qualify as a wholesale investor, but the most common are set out in Section 708 and Section 761G of the Corporations Act:
1. Accountant’s Certificate Test (the most common)
You qualify for wholesale investor status if a qualified accountant certifies that you meet one of the following:
- You have net assets of at least $2.5 million, or
- You have earned at least $250,000 per year in gross income for the last two financial years
Accountant’s certificates must be issued by a qualified accountant and are valid for 2 years from date of issue.
2. The $500,000 Investment Test
You automatically qualify for wholesale investor status if you invest $500,000 or more into a single investment Fund. This threshold is set out in Section 708(8)(c) of the Corporations Act.
3. Professional Investor Status
This applies to institutions and certain entities such as AFSL holders, superannuation trustees, and investment companies.
Benefits of Wholesale Investor Status
Wholesale investor requirements aren’t just regulatory boxes to tick, they ensure:
- You are eligible to access the types of investment opportunities Jarra offers
- Jarra meets our obligations as an AFSL‑regulated fund manager
- The investment process is transparent, compliant, and aligned with your financial profile
What You Need To Provide to Jarra
To recap, if you’re qualifying under the net asset or income test, you’ll need to provide a Wholesale Investor Certificate signed by a qualified accountant alongside your application to invest, which confirms you meet the thresholds under Section 761G(7)(c) or Section 708(8). The certificate must be less than two years old.
If you’re qualifying under the $500,000 investment test, we will verify this as part of the application process.
We recommend you chat to your accountant to discuss your investor status further, or contact Jarra to find out more about the investment process.
To view Jarra’s current investment opportunities, click here.
