Investment Opportunities for Wholesale and Eligible Investors

The potential for returns that wholesale investments offer certainly make them appealing.
These investments are geared toward veteran investors, and typically minimum investments
amounts apply. While it might be tempting to jump on board, before doing so it is
recommended that you consult with a Registered Financial Advisor before proceeding with
any investment. 

What Does It Mean to Be a “Wholesale” or “Eligible” Investor? 
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Legally, Wholesale Investors are defined as individuals or entities that have adequate
experience in investment practices. In other words, Wholesale Investors do not need
disclosure. An individual or entity can be a Wholesale Investor on all financial product offers
or for a specific offer. An Eligible Investor, which is a type of Wholesale Investor, is an
individual or entity that has ample experience obtaining or resolving financial products, in
relation to a specific transaction.
  
Wholesale Investors

• They’re a business that focuses solely on investments.
• They meet the legal criteria that pertains to investment activity that qualifies them as 

           a repeat or proficient Investor.

• Their net assets or turnover exceeds $5 million for the two most recently completed

           fiscal years.

• They’re an agency that is associated with the government.

Eligible Investors  

• Has the ability to assess the merits of a financial transaction. 
• Has their own informational needs in relation to a specific transaction. 
• Has adequate information, which has been provided by any individual who will be

           taking part in the transaction. 

Protections for Wholesale Investors 

In regard to retail investment offers, there are a variety of protections that can be used, as
per the FMA, and intervention can occur whenever necessary. In regard to wholesale
investment offers, minimal oversight exists. The following applies to wholesale offers:

• No product disclosure statement (PDS) is provided for an offer .
• The firm involved is not licensed by the FMA.
• Dispute resolution schemes cannot be accessed.
• Information about the ongoing performance of the investment is not provided.
• In regard to debt securities, a licensed supervisor is not involved.

Though wholesale investor offers aren’t regulated the same as retail investor offers, offers
do need to meet “fair dealing” requirements. In other words, the entity who makes the offer
can’t: 

• Partake in misleading or deceptive conduct.
• Make false or inaccurate claims about the offer.
• Make representations that have not been proven. 

Seek Financial Assistance

If you are considering a wholesale investment offer, before proceeding, seeking the advice
and insight of a Registered Financial Advisor is highly recommended to ensure you are
making a sound decision.