ASIC clears DomaCom’s equity release
The Australian Securities and Investments Commission (ASIC) has issued a relief instrument that will allow DomaCom to deliver its senior equity release (SER) product, which has been designed for ageing retirees who are asset-rich and cash-poor.
Arthur Naoumidis, the firm’s chief executive, said that with banks withdrawing from the reverse mortgage market, retirees would need an alternative source of funding that would enable them to sell fractions of their house while remaining in their home.
The SER product would be structured as a financial product to be provided by financial advisers who complete an accreditation course for the product.
“With the large baby boomer cohort entering retirement, the need for equity release funding over the next five to 10 years should be very significant and our SER product will help the $3-trillion superannuation sector to provide the capital needed,” Naoumidis said.
The firm said it would target the first half of 2019 to deliver the SER product to the market.
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