The Government has quietly shelved its controversial proposal to raise the threshold for wholesale investors. This move faced significant opposition from the financial services industry, which was led by the venture capital and funds management community.

If the threshold had increased to a suggested $4.5 including the family home, a significant portion of Australians would be excluded from entering into wholesale investments

▪ Consequences of the proposed changes:
▪ Current wholesale investors could have lost access to wholesale investment opportunities.
▪ Consumer choice would diminish.
▪ Non-bank lending sectors would likely suffer, impacting Australian businesses.
▪ Reduced funding for early-stage investments from Angel Investor Groups and venture capital funds.

King Irving was an active participant in proposing that the test remained substantially unchanged with a view to fostering innovation and liquidity in Australia’s financial service industry.