Setting Sophisticated investor/Wholesale client status for contacts

You can set a Sophisticated investor / Wholesale client status for contacts. For company type issuers "Sophisticated investor" terminology is used throughout the site whereas for trust type issuers "Wholesale client" terminology is used. For the purposes of this article we will refer to the status as Sophisticated investor, however note that for trust type issuers this will appear as wholesale client in the site.

You can see an overview of the Wholesale client status for all holders in your client database in the client centre AML/CTF verification centre.

The Sophisticated investor status for a contact helps determine the Sophisticated investor status of any holder with which the contact is associated, based on the default options set in the issuer preferences. However, you can also override the default options on a holder-by-holder basis.

Setting default options

To set default options:

  1. From the Issuer centre main menu, go to Issuer > Profile.
  2. Scroll to Sophisticated  investor default settings, select an option from the below
  • Sophisticated investor - Any associate is a sophisticated investor: An investor will be a sophisticated investor if any associate is a sophisticated investor.
  • Sophisticated investor - All associates are sophisticated investors: Settings for this client depend on the investor type and the status of its associates. In all cases, any associates that have been marked as “Not required” will be ignored.
    • Individual/joint: an investor will be a sophisticated investor if:
      • all individual associates are sophisticated investors ignoring “Not required”
    • Company type: an investor will be a sophisticated investor if:
      • The company associate is a sophisticated investor OR
      • All individual associates are sophisticated investor ignoring “Not required”
    • Trust with Individual trustees: an investor will be a sophisticated investor if:
      • The trust is a sophisticated investor OR
      • All the individual trustee’s are sophisticated investors ignoring “Not required” OR
      • All individual associates are sophisticated investors ignoring “Not required”
  • Sophisticated investor - Set manually: An investor’s sophisticated investor status will be set to “Not determined” by default, regardless of the status of any of its associates. A custom status for each investor can be set by going to the investor details page, clicking on the sophisticated investor indicator, and then selecting “Override sophisticated investor status”.

Setting a status on an contact in the contact detail page

  1. Navigate to the contact detail page, then scroll to the Verification section
  2. Under the verification section, select the contact's wholesale client status from the following options.
    • Not determined
    • Not a sophisticated investor
    • Dependent upon valid accountant's certificate
    • Sophisticated investor - Independent of accountant's certificate

Setting a status on a contact in the application details page

  1. Navigate to Capital raising > Offers and applications
  2. Select an offer by clicking on one from the offers list view
  3. Select an application by clicking on one from the applications list view
  4. Scroll down to the investor details section
  5. Select the contact’s wholesale client status from the following options.
    • Not determined
    • Not a sophisticated investor
    • Dependent upon valid accountant's certificate
    • Sophisticated investor - Independent of accountant's certificate

‘Dependent on valid accountant’s certificate’ status

If you choose Dependent upon valid accountant's certificate, the system will check the Identity and other documents section of the contact details page to see if there is a valid accountant’s certificate supplied. If so, the contact will be determined to have a valid status. A valid accountant’s certificate means:  

  • A document with the type Accountant’s certificate has been uploaded to the Identity and other documents section of the contact details page.
  • The Issue date of the accountant’s certificate is less than two years ago.
  • The document has been marked Verified by issuer.

Viewing the holder’s sophisticated investor status

The issuer profile setting and statuses assigned to associated contacts determine how the sophisticated investor status is determined for the holder.

The holder’s sophisticated investor status can be seen on the holder’s holder details page in the header.

The sophisticated investor indicator contains a coloured dot which indicates the investors wholesale client status as follows:

  • Grey - undetermined
  • Red - not a sophisticated investor
  • Green - valid sophisticated investor

Overriding the holder’s sophisticated investor status

The holder’s sophisticated investor status as determined by the methods described above can be overridden.

  1. Click on the sophisticated investor indicator text link
  2. Click on Override sophisticated investor status
  3. Select one of the available override options as described below.
  • Default (<As set in the issuer profile>): The sophisticated investor status will be assigned based on the setting in the issuer profile.
  • Not determined: Set the investors sophisticated investor status to not determined.
  • Not a sophisticated investor: Set the investor's sophisticated investor status to not a sophisticated investor.
  • Is a sophisticated investor: Set the investors sophisticated investor status to sophisticated investor, regardless of the status of any of it’s associates and accountant’s certificates
  • Sophisticated investor - any associate is a sophisticated investor: An investor will be a sophisticated investor if any associate is a sophisticated investor.
  • Sophisticated investor - All associates are sophisticated investors: Settings for this client depend on the investor type and the status of its associates. In all cases, any associates that have been marked as “Not required” will be ignored.
    • Individual/joint: an investor will be a sophisticated investor if:
      • all individual associates are sophisticated investors ignoring “Not required”
    • Company type: an investor will be a sophisticated investor if:
      • The company associate is a sophisticated investor OR
      • All individual associates are sophisticated investor ignoring “Not required”
    • Trust with Individual trustees: an investor will be a sophisticated investor if:
      • The trust is a sophisticated investor OR
      • All the individual trustee’s are sophisticated investors ignoring “Not required” OR
  1. Optionally, add a note an attach a file to this override.
  2. Click on the Save button.

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