Financial Advisers Act 2008

5C Who are wholesale clients

(1)

The following clients of a financial adviser or broker are wholesale clients in respect of a financial adviser service or a broking service (unless the person has opted out from being a wholesale client under section 5G):

(a)

any other financial adviser or broker who receives the service in the course of business as a financial adviser or broker:

(b)

a person who is in the business of providing any other financial service and receives the financial adviser service or broking service in the course of that business:

(c)
[Repealed]

(d)

(except in respect of a discretionary investment management service) an entity to which at least 1 of the following applied at the end of each of the last 2 completed accounting periods:

(i)

at the balance date, the net assets of the entity exceeded $1 million:

(ii)

the turnover of the entity for the accounting period exceeded $1 million:

(e)

a related body corporate of an entity to which paragraph (d) applies:

(f)

a person who is a wholesale investor within the meaning of clause 3(2) of Schedule 1 of the Financial Markets Conduct Act 2013 (see subsection (3)):

(g)

a person who is, in relation to an offer of FMCA financial products, a wholesale investor within the meaning of clause 3 of Schedule 1 of the Financial Markets Conduct Act 2013 if the service relates to that offer or to FMCA financial products that have been acquired by that person under that offer:

(ga)

a person who is, in relation to an offer of FMCA financial products, a close business associate of the offeror, or a relative of the offeror or of a director of the offeror, within the meaning of clauses 4 and 5 of Schedule 1 of the Financial Markets Conduct Act 2013 if the service relates to that offer or to FMCA financial products that have been acquired by that person under that offer:

(gb)

a person who is, in relation to a DIMS facility provided by a DIMS licensee, a wholesale investor under clause 36(b) of Schedule 1 of the Financial Markets Conduct Act 2013 if the service relates to that DIMS facility:

(h)

an eligible investor under section 5D.

(2)

If subsection (1) applies to a person (A), it applies equally to any controlling owner, director, employee, agent, or other person acting in the course of, and for the purposes of, A’s business to the same extent as it applies to A.

(3)

The relevant time, for the purposes of applying Schedule 1 of the Financial Markets Conduct Act 2013 under subsection (1)(f), must be treated as the time immediately before the service is received by the client.

Section 5C: inserted, on 1 July 2010, by section 9 of the Financial Advisers Amendment Act 2010 (2010 No 40).

Section 5C(1)(c): repealed, on 1 December 2014, by section 14(1) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 5C(1)(d): amended, on 1 December 2014, by section 14(2) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 5C(1)(f): replaced, on 1 December 2014, by section 14(3) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 5C(1)(g): replaced, on 1 December 2014, by section 14(3) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 5C(1)(ga): inserted, on 1 December 2014, by section 14(3) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 5C(1)(gb): inserted, on 1 December 2014, by section 14(3) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 5C(3): replaced, on 1 December 2014, by section 14(4) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).