Controversial Changes to Sophisticated Investor Test

Recommendations to change the sophisticated investor test have been made by the Financial Services Council and Stockbrokers and Investment Advisers Association, with potential implications for younger, wealthy investors. The proposed changes aim to remove the property value test at $500,000, increase the gross income test at $250,000, and exclude the family home or raise the net asset test to $5 million if it includes the property. However, these changes may disproportionately impact younger, wealthy investors and curtail investment opportunities. Additionally, the recommendations could affect Australia's standing on the global stage, impacting venture capital and start-up companies, and potentially curtailing investment in cheaper and more innovative digital assets, venture funds, and structured products.