Tougher guidelines on unlisted schemes

Tony D'Aloisio

Unlisted mortgage schemes will need to comply with a set of tighter and more onerous benchmarks and disclosure principles under new guidelines announced by the Australian Securities and Investments Commission (ASIC).

The regulator has this week released a final regulatory guide that it said was aimed at improving disclosure to retail investors by unlisted mortgage schemes and unlisted property schemes by requiring they disclose a wider range of data.

Commenting on the new arrangements, ASIC chairman Tony D’Aloisio made clear that the regulator would be working with the major industry stakeholders to implement the new regime.

He said that in developing its new approach, ASIC had received submissions from mortgage and property fund managers, industry and consumer groups, advisers, valuers, auditors, ratings agencies and financial planners.

D’Aloisio said that, in response, ASIC had modified certain aspects of the benchmarks and disclosure principles and advertising guidance in the regulatory guide at the same time as clarifying the method of communication of information to retail investors.

He said the regulator would be encouraging responsible entities to communicate the enhanced disclosure regime to investors by the most efficient and effective way possible and using existing investor communication channels where possible.