Buyer Status Verification
To be a Buyer Member on PrimaryMarkets.com the Buyer is required to be “on-boarded” as a qualified party entitled to transact on the PrimaryMarkets platform, being a more experienced
investor able to evaluate investment opportunities without the need or statutory requirement for a prospectus or other regulated disclosure
documents.
As part of the evolution of the PrimaryMarkets.com platform, we are now "live" with Buyer Status Verification
which facilitates the fully digital process of “on-boarding” all Buyer Members to interact and transact with the PrimaryMarkets platform.
PrimaryMarkets requires all Buyer Members to be classified as one of the following:
- Wholesale/Sophisticated Investor;
- Professional/Institutional Investor;
- Experienced Investor; or
- Qualified Institutional Buyer (QIB) or Accredited Investor.
If you have been asked to complete the Buyer Verification form, you can do so here.
Buyer Status Verification – Regulatory Requirements
All Buyer Members must apply to PrimaryMarkets to have their Investment Status profiles verified as one of the above investor
types. Detailed on this webpage are the requirements for each Status classification including those as required under Section 708 of the
Corporations Act 2001 (Cth.) and the Securities and Exchange Commission (SEC) (for investors into USA-based offerings).
To apply for Buyer Status Identification
A Buyer Member must apply to PrimaryMarkets via the Services tab once the Buyer has logged in to the homepage www.primarymarkets.com
under the drop-box “Buyer Status Identification”.
What are the advantages of PrimaryMarkets Buyer Status Verification?
PrimaryMarkets Buyer Status Verification is the most efficient and effective process for Buyer Members and expedites the approval
process.
PrimaryMarkets believes its Buyer Status Verification platform is “best practice” for the provision of the necessary
investor information and data whilst at the same time safeguarding Buyer Member privacy.
To be classified a Wholesale or Sophisticated Investor the Buyer Member must:
- Have gross personal income over the last 2 years of AUD$250,000+; or
- Have net assets of AUD$2.5M+; and
- Completed the Buyer Status Verification Declaration with accompanying Accountant’s Certificate.
To be classified a Professional/Institutional Investor the Buyer Member must:
- Hold an Australian Financial Services Licence (AFSL); or
- Have or control net assets of AUD$10M+.
To be classified an Experienced Investor the Buyer Member must:
PrimaryMarkets will need to be satisfied on reasonable grounds as described in Section 708(10) and s761GA of the Corporations
Act 2001 (Cth.) that the proposed Buyer Member has previous experience in investing in securities and investments that allows them to assess:
- the merits of an offer;
- the value of the transaction;
- the commercial and legal risks involved in accepting the offer;
- their own information needs; and
- the adequacy of the information given by the Seller Member making the offer.
To be classified an Experienced Investor it is necessary for an off-line application to PrimaryMarkets.
Who is a Qualified Institutional Buyer (QIB) or Accredited Investor?
Under United States law, a QIB is a company that manages at least US$100M of securities on a discretionary basis or is a registered broker-dealer
investing at least US$10M in non-affiliate securities. A QIB can trade privately placed securities with other qualified institutional investors
under SEC Rule 144A, which provides a safe harbor exemption from SEC registration.
An Accredited Investor, is a term used by the SEC under Regulation D to refer to investors who are financially sophisticated and have a reduced
need for the protection provided by certain government filings. In order for an individual to qualify as an accredited investor, he or
she must satisfy at least one of the following:
- earn an individual income of more than US$200,000 per year, or a joint income of US$300,000, in each of the last two years and expect to
reasonably maintain the same level of income.
- have a net worth exceeding US$1M, either individually or jointly with his or her spouse.
- be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.
FAQs
What details does a Buyer need to provide for Buyer Status Verification?
Once the Buyer has logged in to the homepage www.primarymarkets.com via the Services tab under the drop-box “Buyer Status Identification” the Buyer will go through the process of providing the following information:
- Investing Entity Name.
- Investing Type (individual, company, trust, superannuation fund).
- ABN/ACN (if applicable).
- Address;
- Email address;
- Accountant’s name and contact details (for Wholesale and Sophisticated Investors only).
Once the Verification from has been completed the Buyer will be asked to digitally sign the declaration.
If a Certificate of Qualified Accountant is required, the Accountant will be emailed with a link to the Buyer’s declaration and asking the
accountant to provide verification of the status of the Buyer and once completed to digitally sign the Accountants Certificate.
Each of these processes can be completed within minutes online.
What is PrimaryMarkets fee for Buyer Status Verification?
How can a Buyer be sure their data remains secured?
PrimaryMarkets understands that the security of your data and information is very important. PrimaryMarkets provide reasonable administrative, technical, and physical security controls to protect all Buyer Member data and information. However,
despite PrimaryMarkets efforts, no security controls can be 100% effective and we cannot, and do not guarantee or warrant
the ultimate security of your data and information.
Members have the ability to control sensitive content within the PrimaryMarkets website. PrimaryMarkets website
requires a visitor to log in with a username and password (available to Members only) in order to gain access. A Member can update their
password within the Account section of our website, however that password is not viewable in plain‐text nor will the password be viewable
in plain‐text through email communication such as email campaigns. Except for what is publicly available, PrimaryMarkets cannot disclose any additional details about our infrastructure and security systems, since this is considered commercially sensitive information. The
host of the PrimaryMarkets website:
- Has a multitude of security mechanisms in place, such as AAA (Authentication, Authorization, and Access) controls, attack detection and
annihilation mechanisms, encryption of sensitive data, firewalls and anti-virus protections.
- Regularly tests for security holes both manually and using various 3rd party penetration software.
- Considers and follows a multitude of security standards.
Australian Licence to operate the Buyer Status Verification process
PrimaryMarkets holds the necessary Australian Financial Services Licence (AFSL) to obtain and hold such Buyer Status Verification
information and data.
Still have more Questions?
- Chat with us online by clicking the “Leave a Message” tab on the bottom right
- Give us a call on +61 2 9993 4475
- Drop us a line at info@primarymarkets.com