To be considered a sophisticated investor your accountant needs to certify that you:
• Have earned an income of $250,000 or more per annum for the last two years or
• Hold net assets of at least $2.5 million.
Sophisticated investors can access investment opportunities not generally available to retail investors. These can include pre-IPO capital offers, equity placements, private equity, property syndicates, hedge funds, and other unlisted securities.
To be considered a sophisticated investor, you need a Qualified Accountant’s Certificate (also called a Sophisticated and Wholesale Investor Certificate or Investor Certificate) signed by your accountant, verifying your assets and/or income. Certificates are valid for two years and you need to make your initial investment within six months of obtaining your certificate.
Further information on this can be found in Chapters 6D and 7 of the Corporations Act 2001.