The Australian Securities and Investments Commission (ASIC) is set to improve the disclosure around unlisted mortgage schemes for retail investors following a risk assessment of the sector.
ASIC has released a consultation paper with proposals that it stated aim to build on the benchmark-based disclosure model for unlisted mortgage schemes. The consultation paper has followed ASIC’s work with the responsible entities of unlisted mortgage schemes in helping them understand the new Regulatory Guide 45 disclosure benchmarks. However, ASIC stated, changes in market conditions had led to a reassessment of the risks and business practices in the unlisted mortgage scheme sector.
“Our proposals are designed to improve the content and format of the benchmark disclosure that responsible entities should provide to retail investors”, said ASIC commissioner, Greg Medcraft.
Comments regarding the consultation paper are open until November 26.
