6 November 2014: A new online investor registry will modernise and significantly improve the compliance process for certifying sophisticated and wholesale investors. Sophisticated Access (SA) has launched a secure, real-time registry, Cygura, for investors and their accountants, financial advisors and product issuers to manage sophisticated Investor Certificates online. “The distinction between a retail and sophisticated investor has become crucial to compliance in Australia’s financial services industry,” says Sophisticated Access founder and managing director, Peta Tilse. “Yet until now we have been trapped in a legacy paper-based system with multiple Certificates, missed deals from lapsed Certificates, and in some instances a lack of transparency for investors over their status as sophisticated.” “Cygura replaces and streamlines that manual certification process with a central, electronic online system that is transparent, compliant and up to date.” The launch comes amid increasing focus on the efficiency and integrity of Australia’s consumer financial services system by regulator ASIC and the Financial Services Inquiry (Murray Inquiry). “Cygura puts investors in the box seat, giving them greater control over the certification process, including the ability to control and see who is relying on the certificate,” Tilse says. “This will help restore credibility to the certification process and address some of the compliance issues raised in the advisory market recently.” “Additionally, Cygura is a quicker and simpler sophisticated investor compliance tool for advisors, product providers and accountants. It also allows them to view the status of their clients in one central location, simplifying the marketing of new investment opportunities to sophisticated investors.” In developing Cygura, Sophisticated Access worked closely with ASIC to identify and address relevant regulatory matters. “The service complies with the Corporations Act requirements,” says Tilse, who has 20 years finance experience as a top ranking fund manager and investment advisor for the likes of UBS and Goldman Sachs. Tilse says with the growth and complexity of financial products and SMSFs it has become critical to clarify who is retail, and who is sophisticated. Sophisticated investors receive priority access to institutional deals including pre-IPO offers, private placements, property syndicates and structured investment products, but they lose retail investor disclosure protections. Investor Certificates form the heart of sophisticated investor compliance. To become a sophisticated investor, the Corporations Act requires an investor’s accountant to sign a Qualified Accountants Certificate (Investor Certificate) verifying the investor has at least $2.5 million of net assets, or has earned $250,000 per annum in the past two years. Tilse says one of the major issues of the legacy paper-based system was multiple certificates: each of an investor’s advisors and product providers held a Certificate. “Cygura means there is just one Certificate now, and you don’t have to keep going back and forth to your accountant,” Tilse says. The legacy system also increased the risk that investors missed out on deals because Certificates had expired. Certificates are valid for two years. “With Cygura, accountants receive an email reminder to review their client’s Certificate prior to expiry. This helps ensure Certificates are always up to date.” Tilse says innovation and technology is key to driving greater efficiency and integrity in Australia’s financial system. “We’re seeing significant innovation across financial services. Cygura takes that wave of innovation into the crucial area of investor compliance.” How Cygura works:When an investor registers with Cygura they are requested to provide their accountant’s details including name and contact email address. Cygura then contacts the accountant with a request to certify the investor’s status under Chapters 6D and 7 of the Corporations Act (2001). Once the accountant has certified, the investor can log in and share their certificate with investment advisors or product issuers. About Sophisticated Access:Sophisticated Access is the central source of investment information for sophisticated and wholesale investors, and home of Cygura. After 20 years experience in retail and wholesale financial markets, Sophisticated Access was created to improve the convenience and transparency around Sophisticated Investor Certificates and to provide investors with information about a wider range of investment options. Cygura is at the forefront of compliance innovations and draws on our deep understanding of financial market operations and associated regulatory obligations. Cygura™ is a division of Sophisticated Access Capital®. www.sophisticatedaccess.com.au Further information:Ben Power Power Communications 0411 876 025   Emma Cullen-Ward One Profile 0414 989 137