Becoming a 708 Sophisticated Investor

Who is a sophisticated investor and what does it mean if you are? 

As an investor with years of trading or investing in markets you may be able to qualify as a sophisticated investor which will enable you to access investment opportunities that are not made available to retail clients.

What is a sophisticated investor?

A sophisticated investor is a classification of investor indicating someone who has sufficient capital, experience and net worth to engage in more advanced types of investment opportunities.

Pros of being a Sophisticated Investor:

  • Exposure to a wider range of investment opportunities such as pre-IPO offers, private capital raises, and unlisted equities
  • Better deal valuation than normal, potentially giving a greater reward
  • Reduction of paperwork to gain access to investment opportunities
  • Potentially a more direct relationship with your adviser

Cons of being a Sophisticated Investor:

  • You are responsible for evaluating an investment opportunity
  • The analysis and consideration of the risk of investment opportunities is borne by the investor
  • Exposure to a greater amount of risk
  • Investors need to take into account their own personal circumstances before entering a deal
  • Opt out of retail investor protections such as the provision of Financial Services Guides (FSG), Statements of Advice, bans of particular forms of conflicted remuneration, the provision of Product Disclosure Statements (PDS) and advice warnings.  Therefore, clients need to do more research and fact-checking.

How to qualify as a Sophisticated Investor with us 

The test requires an accountant to certify that a client has:

  • Net assets of $2.5million; or
  • Gross income for each of the last two financial years of at least $250,000

Sophisticated Investor Certificates are valid for two years and the initial investment needs to be made within six months of obtaining the certificate.  In determining the net assets or gross income of a person, the net assets or gross income of a company or trust controlled by that person can be included.

In addition, we require that you have a history of trading and education in options trading.

If you fit these requirements or you are unsure, you can speak to an accountant who may be able to issue you with a 708 certificate.

Download an unfilled certificate by clicking here.

Option 1: Upload Accountants Certificate

Option 2: Submit Your Accountant Details