International Law

Disclosure by unlisted mortgage schemes

By David Jacobson

ASIC has released Consultation Paper 141 Mortgage schemes: Strengthening the disclosure benchmarks (CP 141) which aims to update the benchmark-based disclosure model for unlisted mortgage schemes, as outlined in ASIC?s Regulatory Guide 45 Mortgage schemes ? improving disclosure for retail investors (RG 45).

CP 141 includes a summary of ASIC?s findings on its review of the disclosure against the existing benchmarks in RG 45 and sets out proposals to improve the benchmarks to produce better and more focused disclosure by:

• simplifying the benchmarks to make it easier to determine whether the benchmark is met or not;
• separating additional disclosure requirements from the benchmark;
• clarifying how the RG 45 benchmarks apply to feeder funds; and
• providing additional guidance on compliance with the ?if not, why not? approach.

ASIC is seeking comments on the proposals in the consultation paper by 26 November 2010.

Full post as published by Australian Regulatory Compliance Review on October 10, 2010 (boomark / email).