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Labor to overhaul ‘sophisticated investor’ test

Michael Read
Michael ReadEconomics correspondent

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Labor will make it harder for retail investors to qualify as “sophisticated investors”, as regulators warn access to riskier products such as private equity and unlisted property should be limited to those with more than $4.5 million.

Assistant Treasurer Stephen Jones announced a surprise inquiry into managed investment schemes in October 2022 amid concerns about retirees losing their life savings to strategies they never fully understood.

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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com

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    Original URL: https://www.afr.com/policy/economy/labor-to-overhaul-sophisticated-investor-test-20231219-p5eseg