Throughout the Equitise platform we mention quite a few industry specific terms that you might be wondering about. For a full breakdown of the a to z of equity crowdfunding, check out our glossary here.
One of the most important terms you’ll come across is accredited investor. There are a few different types of accredited investors, with the main categories being wholesale and sophisticated investors. These investors have the ability to access wholesale offers and also invest more than $10,000 in an equity crowdfunding offer in Australia.
These types of investors are legally defined as follows:
- The investor has earned over $250,000 in gross income per annum for each of the last two financial years, or;
- The investor owns over $2.5 million in net assets.
There are a few other potential considerations for these definitions. For example a company or trust controlled by a person meeting the above requirements qualifies sophisticated, as does a sufficiently experienced investor with a statement from an AFSL.
The definition is similar but slightly different for Qualifying (Eligible or Wholesale) Investors for our friends over in New Zealand:
- Wholesale: The investor’s net assets, combined with the assets of the entities they control, exceeded $5 million for the two most recent financial years, or;
- Wholesale: The investor’s total turnover, combined with the turnover of the entities they control, exceeded $5 million for the two most recent financial years.
- Wholesale: Your business is an investment business (fund manager, advisor, insurer etc.)
- Eligible: You have experience in investing and/or you have invested in financial products greater than $1m
Again, there are some alternative wholesale qualifications.
Without getting into the nitty gritty of these accreditations, the main thing is that if you are unsure whether you qualify as a wholesale or eligible investor, simply have a chat to your accountant.
I meet the requirements, how do I become accredited?
To be approved through the Equitise platform, you’ll need to submit a s708 certificate (Australian) or equivalent, which essentially declares your income or asset levels are above the required threshold.
Create an account on Equitise and then download the certificate from your dashboard for your accountant to complete. You can then upload the completed certificate within your dashboard.
If you have any questions, don’t hesitate to reach out to us or your accountant.
Why does this matter?
Unfortunately, in order to invest over $10,000 in Australian equity crowdfunding offers, and to access other investment opportunities such as our exclusive wholesale offers, or alternative financial instruments, you legally must be an accredited investor, and the legislation requires us to verify this.
Any information provided is kept secure and confidential and is only used for accreditation processes. If you have any questions or trouble, please contact us here.
And if you don’t meet the above requirements but there are plenty of other offers on our platform that retail investors can participate in including IPOs and equity crowdfund and you can invest up to $10,000 in each which is a great way to diversify your portfolio.