In this article:
Differences of Retail vs Wholesale/Sophisticated Investor
Differenced of Buying Shares as an Individual, as a Company, through a SMSF or a Trust.
First up, all shares purchased through Birchal, or any crowd-sourced funding (CSF) offer, are fully owned ordinary shares. For specific information on the rights associated with your shares, that will differ from company to company. Make sure you read the Offer Document and Company Constitution before making an investment, or if you're still stuck seek professional advice.
1. Retail Investor vs Wholesale/Sophisticated Investor
A Retail Investor is anyone over the age of 18, who can invest up to $10,000 AUD in an offer within a 12 month period. In exchange, you'll receive securities in that company in the form of shares.
A wholesale Investor is someone who is eligible to invest more than $10,000 AUD in a company through CSF. To determine if you are eligible, you will need to provide evidence of wholesale status at the time of your investment. This will be required on step 5 of the investment process (pictured)
See here about personal details we collect to complete your investment.
2. Buying Shares as an Individual, as a Company, through a SMSF or a Trust
In all Birchal offers, when investing in a company you will get to step 3 of the investment process where you can determine what sort of entity is investing into the offer and who will be the owner of the shares.
Regardless of the entity you choose to invest under, if you are looking to invest more than $10k AUD in a single offer you will need to provide evidence of wholesale status.
Four options below:
You are investing as an individual and will therefore be entering your residential address.
2. A Trustee or Trust
If you are a Trustee, choose individual at this stage. Since a trust is not a legal entity it cannot directly own shares in a company. The trustee of the trust must be listed as the owner of the shares for the benefit of the trust.
Examples of what to write below in LEGAL NAME:
<your name> ATF <trust name>. ie. John Birchal ATF Birchal Family Trust
<business name PTY LTD> ATF <trust name> Birchal Pty Ltd ATF Birchal Financial Services
Example: "Ms Anne Smith ATF The Smith Trust" means that Anne Smith will be the owner of the shares but The Smith Trust will appear on the share registry. “ATF” meaning “As Trustee For”.
See more on investing on behalf of a child here
3. A Company
If you're investing as a company, ensure you've ticked to invest as a company, and not an individual in the Ownership tab. You will need to input company name, then the registration number.
NOTE: your company name is what appears on your share certificate, so please double-check this.
Additionally, we'll require the director's legal name making the application as well as the date of the director.
It's important to note that we need the company address on file as this will be associated with your account, and your company address needs to be on file for any correspondence.
This is only in the event that the company you've invested in chooses a share registry provider that sends share certificates by mail. We never send anything by mail at Birchal, but these details need to be correct for future reference.
4. A Self Managed Super Fund (SMSF)
Please note, if investing via your SMSF, you should seek independent advice on whether it is permissible for your SMSF trustee to invest in CSF offers. Everyone’s circumstances are different.
It is technically possible for a trustee of a self managed super fund (SMSF) to invest in CSF offers through the Birchal platform.
One way to do this is to specify the trustee as the legal owner of the shares, as trustee for the SMSF, in the “legal name” section of the Birchal application process (e.g. “[Trustee Name] ATF [SMSF name]").
Note that if your SMSF has a corporate trustee, then you would select the “Company” investor option and also include the ACN where requested, but would specify the company as the legal owner of the shares, as trustee for the SMSF (e.g. “[Company Name] ATF [SMSF name]”).
Investing through a SMSF may mean that you will need additional information from from the Company (e.g. for auditing and reporting purposes). Companies will usually be happy to facilitate if and when required. Check with the Company via the discussion board for the offer if you are unsure.
For more information about self-managed super funds, please review the ATO website here - https://www.ato.gov.au/Super/Self-managed-super-funds/
Completed your investment application and want to learn more about the payment process?
Any questions, reach out to [email protected]