ASIC gives green light for new products to hit SMSF market
ASIC has given DomaCom approval to deal in securities under its AFS licence, allowing the crowdfunder to expand its range of peer-to-peer investment products to the SMSF market.
DomaCom chief executive Arthur Naoumidis says the varied AFS licence will allow the firm to offer peer-to-peer mortgage bond sub-funds and a fractional investment model for corporate bonds.
Mr Naoumidis said work is under way to issue a new product disclosure statement to support these new products.
“Mortgage bond sub-funds will be the first product we are planning to launch and will allow for investment loans in the DomaCom property portfolio,” he said.
The mortgage bond sub-funds will offer a yield of 3.54 per cent over the RBA cash rate, with the security of a first registered mortgage and a loan to value ratio of less than 50 per cent, according to DomaCom.
“Mortgage bonds will usually have a fixed term of five years and the current expected return of 5.04 per cent with the security of a first registered mortgage and low LVR is expected to be attractive to the SMSF market,” Mr Naoumidis said.
“DomaCom has many property bookbuilds that have been waiting for a debt solution and we expect the launch of mortgage bonds to accelerate our property bookbuilds.”