ASIC has released a consultation paper outlining proposals to further improve disclosure for retail investors considering investing in unlisted mortgage schemes.
The consultation paper, CP 141, aims to build on the benchmark-based disclosure model for unlisted mortgage schemes, as outlined in RG 45, and reinforces ASIC's focus on protecting retail investors through the promotion of better disclosure.
Since the release of RG 45, ASIC has worked with the responsible entities of unlisted mortgage schemes to help them understand the benchmarks and its disclosure expectations.
Throughout the implementation phase, the regulator has reviewed the effectiveness of the benchmarks and found they could be strengthened to respond to recent changes in the sector, ASIC commissioner Greg Medcraft said.
"Changes in market conditions have led to a reassessment of the risks and business practices in this sector," he said.
"Our proposals are designed to improve the content and format of the benchmark disclosure that responsible entities should provide to retail investors."
CP 141 includes a summary of ASIC's findings from its review of the disclosure against the existing benchmarks in RG 45.
ASIC is seeking comments on the proposals in the consultation paper by 26 November 2010.
