Financial advisers need to know unlisted property schemes
The Australian Securities and Investments Commission (ASIC) has released an updated investor guide on unlisted property schemes, urging investors to seek financial advice when considering the product.
The guide 'Investing in unlisted property schemes' follows the release of six new disclosure benchmarks for fund managers which came into effect earlier this month.
Information addressing each disclosure principle should now be provided in the product disclosure statement for each unlisted property scheme, the regulator said.
ASIC states that even if an adviser recommends a property scheme, an investor should ask further questions about the recommendation, including:
· How does this product fit into your overall financial plan, and how will it help you to achieve what you want?
· Do you understand the risk associated with this type of investment?
· Do you know exactly what the property scheme will do with your money?
· Could you explain the business model of the property scheme to a friend or colleague?
ASIC Commissioner Greg Tanzer said ASIC's first priority was to ensure consumers and financial investors were fully informed about their investment decisions.
"This is especially important when investing in financial products such as unlisted property schemes, as they have numerous risks that investors should be aware of before they invest in these schemes," he said.
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