Final answer:
The Corporations Act 2001 defines all clients as 'retail' unless they qualify as 'wholesale clients,' which include certain large-scale or professional investors.
Step-by-step explanation:
The Corporations Act 2001 in Australia defines all clients as retail unless they meet certain criteria that qualify them as wholesale clients. These criteria can include the size of the investment, net assets, turnover, or professional investment experience. Institutional investors, large companies, professional financiers, and high net-worth individuals can all qualify as wholesale clients, which affords them less regulatory protections compared to retail clients but allows for greater freedom in investment. It's important to understand that non-profit organizations, government entities, and institutional investors may also be classified differently but the specific definition of retail vs. wholesale in the Act is distinguished by the category of 'wholesale clients' rather than these entities.