Investment manager Geoff Wilson has called for the sophisticated investor test to be abolished so that all consumers can access sharemarket capital raisings while replacing it with a financial literacy test for would-be unit-holders in managed funds.

The principal of $3.5 billion listed investment company (LIC) pioneer Wilson Asset Management (WAM) has rejected calls by Labor and the Financial Services Council to raise the threshold in the controversial regulation, arguing that instead the test should be ripped up altogether.