Technically Speaking: SMSFs and the Wholesale and Sophisticated Investor Rules

We are seeing an increase in the number of member queries on the application of the wholesale investor regime for SMSFs. In particular, the use of accountant’s certificates under the sophisticated investor rules.

While there can be advantages for both advisers and clients in stepping outside of the retail client environment, there are also risks for both parties. At first instance, the application of the wholesale client and sophisticated investor rules appears to be straight forward. However, when we look to the apply those rules in an SMSF context things quickly become complicated

Both advisers and accountants need to be aware of how these rules operate for SMSFs and SMSF members, and understand their professional, legal, and ethical obligations to their clients.

In this edition of our Technically Speaking – ‘SMSFs and the Wholesale and Sophisticated Investor Rules’, SMSF Association Policy Manager, Tracey Scotchbrook, unpacks these rules in an SMSF context, highlight the issues, and discusses the key issues advisers and accountants need to consider.

The contents of this resource are taken to be correct at the time of publication.

Disclaimer: Technical Papers contain factual information only and are prepared without considering particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. The information contained in this document does not constitute advice given by the SMSF Association to you. If you rely on this information yourself or to provide advice to other persons, then you do so at your own risk. The SMSF Association is not licensed to provide financial product advice, legal advice or taxation advice. We recommend that you seek appropriate professional advice before relying upon the information in this technical paper. While the SMSF Association believes that the information provided is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this paper is not considered financial advice for the purposes of the Corporations Act 2001. © SMSF Association