Government looking at wholesale investor loophole

Commerce Minister Cameron Brewer. Photo / Supplied

Commerce Minister Cameron Brewer earlier this release launched a new phase of capital markets reform which looks at the contorverial wholesale investor loophole along with product disclosure statement regime.

The wholesale investor setting has been controversial for some time as companies used this mechanism to raise capital from unsavvy investors.

This has been particularly so with property companies offering potentially high risk investments with high forecast returns. The most high profile case recently was with companies associatied with Du Val (which were put in statutory management in 2024 owing an estimated $268 million).