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Wholesale Investment.

Forté's funds are available exclusively to Wholesale Investors. 

Wholesale investors are defined by law, and broadly speaking,  have sufficient previous investing experience that means they don’t require disclosure under the FMCA 2013.  Please see the Act for more information.

 

Through verifying yourself as a wholesale investor, you will be able to access unique investment opportunities. Please note, offers made to wholesale investors may afford lower levels of investor protection than otherwise provided by licensed offers.

How is a Wholesale Investor defined?

A wholesale investor is broadly speaking defined as people or organisations who have sufficient previous investing experience that means they don’t require disclosure.

You can either be a wholesale investor for all offers of financial products, or just for a particular offer.

You will be able to access Forté offerings if you satisfy one or more of the criteria of the following options which are outlined in the Act:

You meet the investment activity criteria specified in law to essentially qualify as a habitual or experienced investor or are an investment business

The investor and entities controlled by the investor own, or at any time during the previous two years owned, a portfolio of specified financial products of a value of at least NZ$1,000,000 (in aggregate) or

The investor and entities controlled by the investor have, during the previous two years, carried out one or more transactions to acquire specified financial products where the amount payable under those transactions (in aggregate) is at least NZ$1,000,000 and the other parties to the transactions are not associated persons of the investor or

The investor has, within the last 10 years before the relevant time, been employed or engaged in an investment business and has, for at least 2 years during that 10-year period, participated to a material extent in the investment decisions made by the investment business.

You are "large":

As at the last day of each of the most recently completed financial years of the investor, the net assets of the investor and the entities controlled by the investor exceeded NZ$5,000,000 or

In each of the two most recently completed financial years of the investor, the total consolidated turnover of the investor and the entities controlled by the investor exceeded NZ$5,000,000

Investor Warning -

Wholesale Investment offers lower protection to investors

Wholesale investments are designed to allow expert investors to make investments without the stringent disclosure required for regulated investment offers.

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However, this means some protections do not apply to wholesale investors.

 

For example, a product disclosure statement is not required for wholesale investors. This document sets out the key characteristics, risks and features of the investment in language suitable for an inexperienced investor.

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The firm offering the product may also not be licensed with the FMA, which means the activities of the firm are not monitored. There is also no licensed supervisor, or independent entity to look after the interests of investors as there is with debt securities such as bonds and managed investment schemes. 

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Wholesale providers are also not required to provide access to a free independent dispute resolution scheme if there are any issues. 

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Despite these differences in regulations, the offeror must still comply with ‘fair dealing’ requirements which ensures the offeror does not engage in any misleading or deceptive conduct, make false or misleading statements and make unsubstantiated representations.

Wholesale certification

To certify your wholesale investor status, you will be required to complete a certificate under clause 41 of Schedule 1 of the Financial Markets Conduct Act 2013 (Act). This will be supported by a confirmation signed by a financial adviser, qualified statutory accountant or lawyer in accordance with Clause 43 of Schedule 1 of the Act.

How do I get certified?

Warning

The law normally requires people who offer financial products to give information to investors before they invest. This information is designed to help investors make an informed decision.


If you give this certificate, the usual rules do not apply to offers of financial products made to you in reliance upon this certificate. As a result, you may not receive a complete and balanced set of information. You will also have fewer other legal protections for these investments.


Make sure you understand these consequences. Ask questions, read all documents carefully, and seek independent financial advice before committing yourself.

Seek advice

Investors should take their own legal advice as to their status under the Act, and should consider obtaining their own tax, legal and financial advice before giving this certificate.

  • From 7th November 2015, units in the Fund are no longer being offered to investors that require disclosure under the FMCA 2013;

  • An Information Memorandum and other relevant documents, will be made available by contacting Forté;

  • For further information please contact Forté.

If you have a problem or a complaint, please contact us at info@fortefunds.co.nz If you are still not satisfied you may refer the matter to the Trustee, Public Trust, Level 9, 34 Shortland Street, PO Box 1598, Auckland 1140 Telephone +64 (9) 985 5300

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