Professional and Sophisticated Investors

[Garpal Gumnut]

I often see the term "professional and sophisticated investors" applied to people in company announcements and in schemes such as Mayfair Platinum whale fishing outfits.

I am very sophisticated and also an investor. So, do I qualify for that title.

Or is there a minimum moiety that gulls need to hand over to an investment adviser.

gg

 

[tech/a]

The used car game has a similar
Terminology
Wood Ducks.

 

[peter2]

 

[Dona Ferentes]

the whole point, and you know it, is that the confusion between moneyed and sophisticated is a clever bit of sophistry to confuse the bunnies. And they don't need to hand it over to an adviser; they can do it all themselves. They usually do.

 

[Junior]

"Sophisticated investor". What a crock! The $2.5mill can include the PPR. So basically anyone who purchased or inherited a family home in inner-Sydney 20+ years ago is "sophisticated".

 

[Garpal Gumnut]

View attachment 105351

So can I remain an unsophisticated investor and have one of my entities sophisticated.

I don't want to be sophisticated. It sounds so 2001 and "common".

gg

 

[jbocker]

Ohhh. I always thought that a fundamental requirement was to an absolute something that rhymes with 'banker'.
I trust that this term still applies.

 

[Country Lad]

I wasn't going to say anything but I find the comments interesting. There have been many posts in the past complaining about the sophisticated investors taking up lucrative issues which people here could not access. Now you are virtually saying those same sophisticated investors are not very bright or worse. Is there some jealousy involved here? Just think about the opportunities sophisticated investors have taken advantages of. Best to be one rather than not I reckon.

 

[tech/a]

I guess more about being able to take up offers than those who cant.
This puts you in the Sophisticated Bracket.
You can buy sophistication.
Ill let the local drug dealer know.

 

[dutchie]

Billionaire investor Leon Cooperman praised tech stocks, criticized Trump, and disclosed his first gold bet in a new interview. Here are the best 12 quotes.

Billionaire investor Leon Cooperman praised tech stocks, criticized Trump, and disclosed his first gold bet in a new interview. Here are the best 12 quotes. | Markets Insider

Jeff Zelevansky/Reuters Leon Cooperman sounded the alarm on the ballooning federal deficit and downplayed the medium-term prospects for US sto...

markets.businessinsider.com

 

[MovingAverage]

So it turns out a lot of accountants will not sign off on these certificates because their PI insurance will not let them. Curious, can anyone recommend someone that will issue these?

 

[kenny]

So it turns out a lot of accountants will not sign off on these certificates because their PI insurance will not let them. Curious, can anyone recommend someone that will issue these?

I've seen some accountant sites charge for those letters in their pricing schedules.

 

[MovingAverage]

I've seen some accountant sites charge for those letters in their pricing schedules.

anyone come to mind?

 

[Value Collector]

So it turns out a lot of accountants will not sign off on these certificates because their PI insurance will not let them. Curious, can anyone recommend someone that will issue these?

My accountant that I have used for the last 16 years or so had no issue signing mine at the time, I have no Idea why an accountant wouldn't.

The form just basically states that at a given time you owned a certain amount of assets or had a certain income.

 

[MovingAverage]

My accountant that I have used for the last 16 years or so had no issue signing mine at the time, I have no Idea why an accountant wouldn't.

The form just basically states that at a given time you owned a certain amount of assets or had a certain income.

I hear you...but mine tells me his PI won't allow him. At first I thought this doesn't make sense but after speaking to a few other accountants they've confirmed the same issue

 

[Dona Ferentes]

anyone come to mind?

Does tend to lead to the obvious question... You've met the conditions but don't have an accountant?

 

[MovingAverage]

Does tend to lead to the obvious question... You've met the conditions but don't have an accountant?

what you talkin' 'bout Willis....why do you think I don't have an accountant?

 

[Value Collector]

Ohhh. I always thought that a fundamental requirement was to an absolute something that rhymes with 'banker'.
I trust that this term still applies.

All it really means is that you can be offered deals that are usually reserved for institutional investors / wholesale investors.

If you don't like the term "sophisticated" just use "wholesale".

When investments are structured for retail investors, the issuing party needs to jump through a certain number of hoops and issue PDS's etc that tick certain boxes, however there are a lot of deals that get done at the wholesale level where they are able to skip a lot of the red tape, and put forward offers to the investors much more quickly but without some of the protections and training wheels etc.

So announcing yourself to the market as a Sophisticated/wholesale investor is just basically saying I am a big boy/girl, and have removed the training wheels and am willing to take a look at some deals and weigh up the risk vs rewards myself and won't try crying to the regulator about not understanding the risks etc if things don't go my way.

-------------------

For example last year a company wanted to extend some financing over Jet engines of a US based airline, they put the loan contracts together offered to institutional and sophisticated investors, using the jet engines as collateral, I think from memory the minimum investment was $20K other deals have been done recently over mining equipment etc.

Offering these types of deals to retail investors would take weeks or months longer than going the wholesale route.

 

[Value Collector]

I hear you...but mine tells me his PI won't allow him. At first I thought this doesn't make sense but after speaking to a few other accountants they've confirmed the same issue

Weird.

 

[MovingAverage]

Weird.

Yup...have you managed to get one in the last 6-12 months?