Industry group launches a new set of standards for the mortgage sector following the collapse of a number of property funds.
The Investment and Financial Services Association (IFSA) has updated its disclosure guidelines for mortgage trusts.
"Property investment has long been a favourite asset class for Australian investors, however, the collapses of companies such as Westpoint and Fincorp have shown that risks involved in certain types of property investment schemes have not been adequately explained," IFSA chief executive Richard Gilbert said.
ASIC also provided input into the new standards which now aim to provide uniform disclosure by managers to investors.
"The new standard should raise the bar across the industry and ensure that disclosures made by managers are meaningful and comparable by investors," Gilbert said.
It will now be mandatory for all IFSA members to comply with the association's Standard No 18: Best Practice for Disclosure in the Mortgage Trust Sector.
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