SP Discussion, page-104

Rightly or wrongly they are deemed to be more experienced investors, with a greater risk appetite, therefore they are afforded these opportunities.

Imagine a high risk off market scheme was offered to mum and dad investors promising massive returns and it goes belly up - they would have no protection from anyone.

Like it or not money often means power / access / privilege - on court seating at the Aus Open starts at $8k per seat.

The commission defines a sophisticated investor as an individual or institution that “must have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment.