Issues surrounding unlisted property disclosure proposals
The regulator’s proposed disclosure principles for unlisted property funds could negatively impact the industry’s move towards shortened, more streamlined Product Disclosure Statements, according to the Australian Direct Property Investment Association (ADPIA).
In responding to the Australia Securities and Investments Commission’s draft regulatory guide for improving disclosure for unlisted property trust investors, ADPIA said the introduction of the proposed principles could lead to an increase in the length of retail offer documents.
“This will make it even more difficult for fund managers to produce four-page Product Disclosure Statements in line with the apparent wishes of the Federal Government’s current Financial Services Working Group,” Matthew Moses, a spokesperson for ADPIA’s issue and lobbying committee, said.
Moses said that while ADPIA welcomed increased disclosure regarding unlisted property funds, it felt incorporation by reference should be considered for keeping the length of Product Disclosure Statements to a minimum.
Also included in ADPIA’s submission to the regulator were concerns over the short timeframe being imposed for implementation of the principles, uncertainty with respect to how the new disclosure principles will apply to open offer documents already in the market and specific issues in relation to some of the information required to be disclosed.
Recommended for you
Platinum Asset Management has provided an update on the possibility of a merger with asset manager L1 Capital following a period of due diligence.
Commentators may be forecasting consolidation in private market firms but a survey of the industry itself expects new manager formation will still outpace this, especially in Asia Pacific.
Fund manager Pacific Current has appointed a former superannuation chief executive as its newest chair, succeeding Tony Robinson who departs after almost a decade to focus on his role at COG Financial.
The possibility of a private credit ETF is looking unlikely for now with US vehicles seeing limited uptake, according to commentators, but fixed income alternatives exist that can provide investors with a similar return.
