ASIC’s role in regulating mortgage funds and protecting investors
Regulations aim to protect investors, promote transparency, and ensure funds comply with the law.
Sponsored Story
Mortgage funds play a vital role in Australia’s investment landscape, offering investors opportunities backed by real property assets. To safeguard trust and confidence in the financial system, the Australian Securities and Investments Commission (ASIC) enforces a comprehensive regulatory framework.
These regulations aim to protect investors, promote transparency, and ensure mortgage funds operate in compliance with financial laws and industry standards.
Under the Corporations Act 2001, ASIC requires that mortgage fund managers hold an Australian Financial Services Licence and comply with strict operational and financial requirements. These include:
Providing a clear and accurate Product Disclosure Statement to help investors make informed decisions about the risks, benefits costs, and returns of their investments, and in particular to assist in helping investors decide if the product is suitable for their needs.
Maintaining transparency with fund managers required to regularly report on fund performance and disclose any material changes affecting the investment.
Enforcing strong risk management practices, requiring fund managers and lenders to conduct thorough due diligence on borrowers, adhere to responsible lending practices, and ensure that investments align with the fund’s risk profile.
Managing conflicts of interest to ensure fair treatment for all investors.
RMBL’s commitment to compliance and governance
RMBL CEO, Alex Courtney, says regulatory compliance and governance are at the core of its operations. Its governance framework is designed to ensure full alignment with ASIC’s requirements.
RMBL's approach includes:
Detailed due diligence processes
Continuous risk monitoring
Transparent communication to align with ASIC’s requirements
Regular policy and procedures reviews to stay aligned with ASIC and maintain industry best practices.
"At RMBL, we see compliance not just as a legal obligation, but as a commitment to the trust our investors place in us. By aligning with ASIC’s regulatory standards, we ensure transparency, mitigate risks, and uphold the highest levels of integrity in mortgage fund management. Our goal is to provide investors with confidence and security in every transaction we facilitate," Ms Courtney says.
"By adhering to ASIC’s regulations and fostering a proactive compliance culture, RMBL upholds transparency and integrity in the mortgage fund industry. Our commitment enables us to deliver reliable and competitive investment opportunities, giving investors and borrowers confidence in every transaction."
This article is for informational purposes only and does not constitute financial advice. The information provided is based on publicly available sources and is intended to assist in understanding the role of the Australian Securities and Investments Commission (ASIC) in regulating managed investment schemes. It is not a recommendation or offer for investment in RMBL Investments Limited.
While care has been taken to ensure the accuracy of the information, the content of this article may not reflect the most current developments or regulations. Readers should seek independent financial advice before making any investment decisions, as individual circumstances and investment objectives vary.
RMBL holds an Australian Financial Services Licence (AFSL) and complies with the relevant regulatory requirements. However, the information contained herein does not represent the views or strategies of the Fund, and past performance is not indicative of future results.
Investing in managed investment schemes involves risks, including potential loss of capital. You should read the PDS and TMD available at www.rmbl.com.au and consider whether an investment in the Fund is right for you before investing.
This article and any links provided are for general information only and should not be taken as constituting professional advice. National Seniors is not a financial advisor. You should consider seeking independent legal, financial, taxation or other advice to check how any information provided relates to your unique circumstances.
