DomaCom pushes for better equity release education
The regulator should work to extend the scope of its financial literacy strategy to include an appropriate focus on retirement funding, particularly in relation to seniors seeking property investment opportunities.
DomaCom general manager, business and professional development Kevin Conlon, building on his involvement in the regulator's National Financial Literacy Forum in April, said the software provider was currently preparing a submission to the Australian Securities and Investments Commission's (ASIC's) ‘Shaping a national financial literacy strategy for 2014-16' consultation paper.
He said the focus of DomaCom's response would be to encourage ASIC to focus more on self-managed superannuation funds (SMSFs) seeking property investment and senior Australian home-owners seeking equity-release solutions.
Financial literacy around that decision-making is critical, Conlon said.
"We have, in the past, encouraged ASIC to pay more attention to this problem and we won't miss the mark on drawing attention to this," he said.
DomaCom has recently begun developing an adviser accreditation program with the intention of starting recruitment for that distribution network in July.
According to Conlon, the program will include both licensed financial advisers and finance brokers, with a view to having them properly trained ahead the launch of DomaCom's equity release offering later this year.
DomaCom executive director Ross Laidlaw said it was the company's ambition to bring equity release activity within the regulatory framework, as it would be a positive for consumer protection.
