Walshs | Walshs was established in 1991 and has grown to become one of South East Queensland's leading accounting and financial planning firms

Wholesale, Sophisticated or Retail – what is the difference?

One of Queensland’s leading financial planning, accounting and lending firms for medical and private clients. Providing accounting, mortgage broking and strategic financial planning advice.

T: 61-7-3221 5677
Email: enquiries@walshs.com.au

Walshs
Level 24/10 Eagle Street, Brisbane QLD 4000

Open in Google Maps
  • Medical Clients
  • Private Clients
BOOK A MEETING

Walshs Insights

Wholesale, Sophisticated or Retail – what is the difference?
Tuesday, 12 April 2022 / Published in Walshs Blog

Wholesale, Sophisticated or Retail – what is the difference?

In the world of investing, you may hear various levels of investors referred to as wholesale, sophisticated investors or retail investors in relation to a particular financial product or service.

But what does that mean, how can you determine which you are and what are the benefits of each?

In this article, Carolyn Duffy, Investment Administration Manager for Walshs, summarises the differences to be found between each investor type.

 

What is a Retail Investor?

All clients are treated as Retail investors unless they’re wholesale or sophisticated investors.

For example, anyone seeking home, motor vehicle, personal or travel insurances is a retail client.

In addition, anyone seeking superannuation advice would also be treated as a retail investor, unless they are a trustee of a superannuation fund, in which case different rules will apply.

Retail investors have access to external dispute resolution schemes, while wholesale investors generally do not.

Retail investors are also afforded protection under the Corporations Act and must be provided with a Financial Services Guide (FSG), Statement of Advice (SOA) and where appropriate, a regulated offer document such as a Product Disclosure Statement (PDS).

Finally, retail investors are afforded all the consumer protections contained in the Future of Financial Advice (FOFA) reforms.

 

What is a Wholesale, Sophisticated Investor?

Wholesale investors can access a wider, and more complex, range of investments and products, which may have an enhanced risk profile.

There are eligibility tests to determine if you can be considered a wholesale investor.

As a wholesale investor you are required to meet one of these tests:

Test #1 – Product value of over $500,000 in one business

Test #2 – Size of Business – measured by number of employees

Greater than 100 employees that manufacture goods

Greater than 20 employees for other businesses

In this case, the business itself can be treated as a wholesale client

Test #3 – Professional investors – mainly institutional investors and investment managers

Test #4 – Assets/income – a gross annual income over $250,000 in the last two financial years or net assets of at least $2.5 million

Test #5 – Controlled company/trust – Companies or trusts which are controlled by a person who meets the asset/income test can be treated as a wholesale client (the product/service is being acquired by the company or on behalf of the trust)

The Sophisticated Investor Test is also used to determine if you meet the wholesale criteria.

In this case, the AFS licensee responsible for the advice must be satisfied, on reasonable grounds, that the investor has sufficient experience to understand the risks involved, the merits and value of the product and has signed a letter of acknowledgement.

 

Why do the differences matter?

A wholesale investor requires less disclosure obligations, for example, Financial Services Guide, Statement of Advice, Product Disclosure Statements, as wholesale clients are assumed to be more financially aware.

However, wholesale investors do have access to more products and investment opportunities.

Retail investors are entitled to receive all disclosure documents, advice documents and fee disclosure statements. They also have the right to compensation and complaint handling arrangements.

Not all tests can be used in all situations.  Applying the test to entities such as Trusts and SMSFs can raise difficulties, so it is important to discuss your situation with your adviser or accountant.

For more advice around your own personal circumstances please feel free to reach out to me by email or call 07 3221 5677.

 

By Carolyn Duffy, Investment Administration Manager, Walshs Practice

 

 

  • Tweet
Tagged under: assets, ATO, brisbane, Brisbane finance, brisbane medical accounting, brisbane private clients, company, finance, financial advice, financial planning, income, investing, investment, investment opportunities, queensland, retailinvestors, trust, wholesaleinvestors

What you can read next

Changes to Queensland Land Tax Shelved!
Changes to Queensland Land Tax Shelved!
Proposed Discretionary Trust Tax Changes: What You Need to Know
Proposed Discretionary Trust Tax Changes: What You Need to Know
The Government’s latest COVID-19 initiatives explained
The Government’s latest COVID-19 initiatives explained

Recent Posts

  • Proposed Discretionary Trust Tax Changes: What You Need to Know

    Proposed Discretionary Trust Tax Changes: What You Need to Know

    The Federal Government has introduced proposed ...
  • From Brisbane to MIT: A Journey of Learning, Leadership and Innovation

    From Brisbane to MIT: A Journey of Learning, Leadership and Innovation

    Annabelle Clare, General Manager, Walshs  In Se...
  • TPD Insurance for Medical Professionals: Why Premiums Are Rising and What to Review

    TPD Insurance for Medical Professionals: Why Premiums Are Rising and What to Review

    For doctors and medical professionals, your abi...
  • Financial Wellbeing for Medical Professionals: Key Insights From the Latest PPS Mutual Research

    Financial Wellbeing for Medical Professionals: Key Insights From the Latest PPS Mutual Research

    Australia’s doctors, dentists and allied health...
  • Proposed update for discretionary trusts

    Proposed update for discretionary trusts

    The Federal Government has released draft legis...
Walshs

Trusted experts in your financial future since 1991.

Book a meeting
Facebook-f Linkedin-in Instagram

Explore

  • Medical clients
  • Private clients
  • Mortgage broking
  • Meet the team
  • Book a meeting

Contact

Phone(07) 3221 5677

Emailenquiries@walshs.com.au

Mortgage brokinglending@walshs.com.au

Fax(07) 3221 5744

Visit

OfficeLevel 24, 10 Eagle Street
Brisbane City QLD 4000

PostalGPO Box 12
Brisbane QLD 4001

AFR Top 100 Accounting Firms 2022-2025

Top 100Australian Financial Review Top 100 Accounting FirmsListed 2022, 2023, 2024 and 2025

Australian Financial Review
Top 100 Accounting Firms

Australian Accounting Awards 2025 Finalist - Boutique Firm of the Year

FinalistBoutique Firm of the Year (20 employees or more)Australian Accounting Awards 2025

Australian Accounting Awards 2025 Finalist - Multiservice Firm of the Year

FinalistMultiservice Firm of the YearAustralian Accounting Awards 2025

Australian Accounting Awards 2022 Winner - Accounting Support Staff of the Year

WinnerAccounting Support Staff of the YearAustralian Accounting Awards 2022

IFA Excellence Awards 2022 Winner - IFA Excellence Award Company

WinnerIFA Excellence Award – CompanyIFA Excellence Awards 2022

Cybercert SMB1001 Gold Level 3

Gold certifiedSMB1001 Gold Level 3 cyber securityCyber Security Certification Australia

Xero Platinum Partner

Platinum PartnerXeroCloud accounting software

Plus nine more Australian Accounting Awards and IFA finalist places since 2022

2024

Multiservice Firm of the YearAustralian Accounting Awards · Finalist

2023

Boutique Firm of the Year (20 employees or more)Australian Accounting Awards · Finalist

Wellness Program/Initiative of the YearAustralian Accounting Awards · Finalist

Partner of the YearAustralian Accounting Awards · Finalist

Wellness Program/Initiative of the YearIFA Excellence Awards · Finalist

2022

Boutique Firm of the Year (20 employees or more)Australian Accounting Awards · Finalist

Wellness Program/Initiative of the YearAustralian Accounting Awards · Finalist

Accounting Support Staff of the YearAustralian Accounting Awards · Finalist

Wellness Program/Initiative of the YearIFA Excellence Awards · Finalist

All advice on this site is general in nature and does not take into account your personal circumstances. Please do not hesitate to contact one of our adviser accountants or financial planning advisers if you have a query that is specific to your circumstances.

ABN 11 248 978 295 Walshs Financial Planning Pty Ltd AFSL 432636 · ABN 82 122 293 912 Corporate Authorised Representative No. 463774 of Walshs Finance Australian Credit Licence 459119 · Liability limited by a scheme approved under Professional Standards Legislation.

© 2026 Walshs

  • Privacy Policy
  • Financial Services Guide
  • Credit Guide
  • Complaints Policy
TOP
lending-15-min-ph

If the time you would like is not available, please contact our office on 07 3221 5677.

Make a booking with Darole Evans

If the time you would like is not available, please contact our office on 07 3221 5677.

GET IN TOUCH

If you would like a Walshs adviser to contact you or to receive marketing material from Walshs and/or be advised of upcoming seminars and events please provide your contact details.
[contact-form-7 id=”18018″ title=”Contact form 1″]

Book 15 minute lending call

If the time you would like is not available, please contact our office on<br>07 3221 5677.