Sophie Grace has experience in establishing a range of wholesale funds for our clients.

We are equipped to help you through all aspects of establishing and maintaining your wholesale fund.

Licensing

If you intend to operate a wholesale fund as either the trustee or investment manager, you will be required to be authorised by an AFSL (by either obtaining your own AFSL or acting as an Authorised Representative).

Click here for further information about licensing requirements for trustees of unregistered managed investment schemes.

Disclosure

Funds which target wholesale investors only are not required to issue a Product Disclosure Statement (“PDS“).  Instead, you will need to prepare and issue an information memorandum to all investors in the fund.  The information memorandum sets out a variety of information regarding the fund, including:

• key features of the fund including distributions, liquidity, redemption of units, withdrawal from the fund and complaints;
• the assets the fund will invest in and how these assets will be valued;
• information about the investment manager and how the fund will be managed;
• information about the trustee and custodian;
• the risks associated with the fund;
• fees and expenses; and
• how to invest in the fund.

Registration

Funds that have wholesale investors only are generally not required to be registered with ASIC.

Legal Documents

Sophie Grace can prepare, review or amend:

• trust deeds and constitutions;
• information memoranda;
• investor subscription agreements; and
• outsourcing agreements including investment management, custody and fund administration agreements.

There are a number of other issues to be considered for those operating a funds management business. Please click here to read more.