The Financial Markets Conduct Act 2013 prescribes how offers of financial products can be made to potential investors, subject to a number of exclusions. One of these exclusions is for offers made to wholesale investors. Such offers do not require the standard disclosure, governance and financial reporting requirements that apply to regulated offers, on the basis that wholesale investors have sufficient knowledge and experience to assess an offer.
In recent years, the FMA has noted an increase in complaints and concerns raised about wholesale offers of financial products indicating, increased investor participation.
This report contains findings from our thematic review of wholesale offers of financial products, along with guidance for offerors and those who provide confirmation for eligible investor certificates.