Unlisted investments face closer oversight
Tony D'Aloisio
The last day of October has emerged as a key date for companies marketing unlisted mortgage and property schemes as a result of a review conducted by the Australian Securities and Investments Commission (ASIC).
This is because ASIC has nominated October 31 as the date by which existing unlisted property and mortgage schemes report against eight benchmarks outlined in a regulatory guide or, in the case of unlisted property schemes, they provide updated disclosure to existing investors.
The new arrangements were outlined today by ASIC chairman Tony D’Aloisio, who released a range of proposals aimed at improving disclosure by unlisted mortgage and property schemes.
However, it is those running unlisted mortgage schemes who will face the greater initial challenge, with the regulator not only setting the October 31 reporting date but insisting that new and existing schemes report against the benchmarks on ‘an if not, why not?’ basis thereafter.
Where unlisted property schemes are concerned, ASIC said it did not propose to extend the ‘if not, why not?’ approach, but would be reviewing the sector to see whether regulatory guidance had improved investor disclosure as well as seeking to determine the degree to which it had been impacted by changed market conditions.
“Based on these factors, ASIC may consider whether there is a need to establish benchmarks for property schemes to disclose on an ‘if not, why not?’ basis,” it said.
D’Aloisio said ASIC’s work with unlisted and unrated debentures had highlighted the need to put greater resources into the area.
AUTHOR
Mike Taylor
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
