On 20 March 2023, the Parliamentary Joint Committee on Corporations and Financial Services commenced an inquiry into (1) the wholesale investor test for offers of securities and (2) the wholesale client test for financial products and services (referred to collectively as ‘the wholesale investor/client tests’).
The Committee called for written submissions by 31 May 2024 and intends to report to the Parliament by the end of 2024.
Our team has made a formal submission on this consultation.
We have considered the most appropriate methods to change the wholesale investor/client tests, to bring them in line with the legislative intention contained in the Financial Services Reform Bill 2001 (Cth), including in respect of:
- retaining, but updating, the existing quantum-based exemptions;
- how consent requirements could operate if introduced for the wholesale client tests;
- making minor amendments to the sophisticated investor tests; and
- reducing limitations to the exclusions under the wholesale client test.
If you would like to read a copy of our submission, download a copy here.
If you have any questions, get in touch with our team below.
Fiona Smedley
Partner, Sydney
Yorick Ng
Special Counsel, Sydney
Adam Hickey
Senior Associate, Sydney
Key contacts
Fiona Smedley
Partner, Sydney
Yorick Ng
Special Counsel, Sydney
Adam Hickey
Senior Associate, Sydney
Disclaimer
The articles published on this website, current at the dates of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.