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ASIC gives green light for new products to hit SMSF market

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By sreporter
February 08 2017
1 minute read
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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.

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“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.”