Definition
What is Wholesale Investor?
An investor who meets specific criteria allowing access to investment products not available to the general public.
A wholesale investor in New Zealand is defined under the Financial Markets Conduct Act 2013 (FMCA) as someone who meets specific eligibility criteria. This status provides access to investment opportunities that aren't available to retail investors, including private equity, venture capital, and private credit funds.
Qualification Pathways: 1. Investment Amount Test - Investing $750,000 or more in a single transaction 2. Net Asset Test - Having net assets of at least $1 million (excluding primary residence for Safe Harbour provisions) 3. Income Test - Annual income of $200,000+ (individual) or $400,000+ (combined for couples) for the past two financial years 4. Investment Business - Being in the business of investing in financial products 5. Large Company - Meeting specific company size thresholds 6. Government Agency - Being a government body or agency 7. Eligible Investor Certificate - Having a financial advisor certify your understanding of risks
Wholesale investors are assumed to have the knowledge and resources to assess investment risks without the protections afforded to retail investors. This means less disclosure requirements from issuers but also less regulatory protection.
Related Terms
Eligible Investor
A category of investor who has been certified by a financial advisor as understanding investment risks.
Retail Investor
Any investor in New Zealand who does not meet the wholesale-investor eligibility tests in Schedule 1 of the FMCA 2013.
Sophisticated Investor
A non-statutory term sometimes used to describe investors who can demonstrate investment experience comparable to the FMCA Schedule 1 eligible-investor pathway.
Financial Markets Conduct Act 2013 (FMCA)
The primary NZ statute governing the offer of financial products, fair dealing in financial markets, and licensing of financial-service providers.
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Educational Content Disclaimer
This glossary provides general educational information only and does not constitute financial, legal, or tax advice. Definitions and explanations are simplified for educational purposes and may not cover all aspects or nuances of each term.
Before making any investment decision, you should seek independent advice from appropriately qualified professionals. Wholesale Investor does not recommend or endorse any particular investment, strategy, or fund manager.