Information Regarding Australian Regulatory Status Under IB Australia

Introduction
Australian resident customers maintaining an account with Interactive Brokers Australia Pty Ltd (IB
Australia), which holds an Australian Financial Services License, number 453554, are initially
classified as a retail investor, unless they satisfy one or more of the requirements to be classified as a
wholesale or professional investor according to the relevant provisions of the Corporations Act 2001.
This article outlines how this process is handled by IB Australia.

Australian Regulatory Status
All new customers of IB Australia default to being classified as a retail investor unless they produce to
IB Australia the required documentary evidence to allow IB Australia to treat them as a wholesale or
professional investor. Investors of IB Australia will only have their regulatory status change from
retail investor to either wholesale or professional investor subsequent to the required
documentation being received and approved by IB Australia.

What is a Wholesale Investor?
The most common way to be classified as a wholesale investor is to obtain a qualified accountant’s
certificate stating that you have net assets or net worth of at least $2.5 million AUD OR have a gross
annual income of at least $250,000 AUD in each of the last two financial years. The qualified
accountant’s certificate is only valid for two years before it needs to be renewed. We have prepared a
wholesale investor booklet, including a pro forma certificate for your accountant to complete, that
can be downloaded [here].

What is a Professional Investor?
In order to qualify as a professional investor, you must have an AFSL, be a body regulated by APRA,
be a superannuation fund (but not a SMSF) and/or have net worth or liquid net worth of at least $10
million AUD. If you meet one of these criteria, you will need to complete and submit to IB Australia
the professional investor declaration contained within the professional investor booklet that we have
prepared, which can be downloaded [here].

What about Self-Managed Super Funds (SMSF’s)?
The law governing the regulatory status of SMSF’s is somewhat of a grey area. As such, IB Australia
have decided to treat all SMSF’s as retail investors, notwithstanding that they may meet the
requirements to otherwise be classified as a wholesale or professional investor.

What about trusts?
For a trust to be considered as a wholesale investor, all trustees must be considered a wholesale
investor based on the tests described above.

Similarly, for a trust to be considered as a professional investor, all trustees must be considered a
professional investor based on the tests described above.

As a result, if at least one trustee is considered retail, the trust is considered a retail trust, regardless
of the status of any other trustees (if applicable).

Other

  • For a full list of the disclosure documents and legal terms which govern the services IB Australia will make available please refer to the IB website.
  • For further information on IB Australia, click on our Financial Services Guide.
  • For more information or assistance, please contact IB Investor Services.