A retail client is an individual or small business receiving financial services who gets the highest level of consumer protections, including PDSs, cooling-off rights, and access to AFCA.
Under the Corporations Act 2001, a retail client is any person or organisation receiving financial services (including insurance) who is not classified as a wholesale client. Retail clients receive the highest level of consumer protections.
Wholesale clients must be investing at least $500,000 or have net assets of at least $2.5 million. The retail/wholesale split reflects assumed financial sophistication.
A family arranging life insurance and income protection cover are retail clients entitled to receive a PDS, exercise cooling-off rights, and access AFCA if disputes arise
A café with 15 employees buying public liability insurance is a retail client and receives full consumer protections including cooling-off rights
An individual with substantial wealth purchasing life insurance for personal purposes remains a retail client despite their financial resources, unless they specifically qualify as wholesale under net assets criteria
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