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ARTICLE · 11 APRIL 2024

Inquiry Into The Wholesale Investor And Wholesale Client Tests

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The Parliamentary Joint Committee on Corporations and Financial Services (Committee) has commenced an inquiry into the wholesale investor test for offers of securities...

AustraliaFinance and Banking
Kane Barnett
Kane Barnett

The Parliamentary Joint Committee on Corporations and Financial Services (Committee) has commenced an inquiry into the wholesale investor test for offers of securities, and the wholesale client test for financial products and services (together, wholesale investor/client tests) in the Corporations Act 2001 (link here) (Inquiry).

The wholesale investor/client tests are extremely important in relation to disclosure, Australian financial services (AFS) licensing, fund registration, and whether various other regulatory requirements apply.

The Inquiry's terms of reference include:

  • review the current test, including the application of the tests in practice;
  • the historical development of the wholesale investor/client tests;

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