Wholesale Investors

2 Feb 2017

Written by

David Busoli, Principal

Where the trustee of an existing SMSF receives advice about how to invest the fund’s assets the fund will be regarded as a wholesale investor if the person providing the advice determines that the trustee is a wholesale client, based on the general test.

Under the general test, the circumstances in which the SMSF will be a wholesale client include:

  • If an individual trustee or a director of a corporate trustee of the SMSF has a certificate from a qualified accountant stating they have net assets of $2.5 million; or
  • If an individual trustee or a director of a corporate trustee of the SMSF has a certificate from a qualified accountant stating they have gross income for each of the past two financial years of at least $250,000; or
  • If the value of the investment is at least $500,000.

The test requirements may be satisfied by a trustee individually or by the trustees collectively.

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