What is a sophisticated or professional investor?
The Corporation Act 2001 (Cth) outlines the eligibility criteria for each category of investor. Detailed below are the requirements for each classification as required under section 708 of the Corporations Act 2001 (Cth.)
Sophisticated Investor (Australia)
- Have a gross income of $250,000 or more per annum in each of the previous two years or;
- Have net assets of over $2.5m
To show that you are a sophisticated investor you need a Qualified Accountant's Certificate.
Sophisticated Investor (Overseas)
If you are a high-net-worth individual living overseas, you can apply to invest in private opportunities on STAX.
You must acknowledge that you are not an Australian citizen or resident and are eligible to receive and participate in offers of securities in accordance with the laws of your country.
- Hold an Australian Financial Services License (AFSL); or
- Have or control gross assets of at least $10m or more
To show that you are a professional investor you need an AFSL number or proof of assets.