AltX is only available to accredited Wholesale Investors or to a ‘Sophisticated Investor’ as defined under the Corporations Act 2001.
AltX Funds Management Pty Ltd (ACN 113 502 604) holds an Australian Financial Services Licence (AFSL 291314) which only allows us to deal only with ‘Wholesale Clients’.
Generally, people buying securities and other financial products must, under the Corporations Act 2001, be given a regulated disclosure document such as a prospectus or product disclosure statement. However, the Act has some exemptions from these requirements.
One of those exemptions is the offering of financial products to a person (either a natural person or a legal person) who is the subject of a current certificate from a qualified accountant certifying they have a prescribed net asset or gross income level (i.e. a ‘Wholesale Client’).
A person is only eligible to be classified as a sophisticated or wholesale investor if they have obtained:
- a gross income of $250,000 or more per annum in each of the previous two years or
- net assets of at least $2.5 million (reg 6D.2.03 and reg 7.1.28).
In order to become an investor on AltX, we require proof, in the form of an accountant’s certificate. During the entity creation process, an accountant’s certificate will be required to be submitted.