On 28 March 2012, the Australian Securities and Investments Commission (ASIC) published updated guidance (Regulatory Guide 46) on investment in unlisted property schemes. ASIC has developed or updated six benchmarks and eight disclosure principles for unlisted property schemes that can help retail investors understand the risks, assess the rewards being offered and decide whether these investments are suitable for them. This guidance aims to assist responsible entities in understanding how to disclose against the benchmarks on an ‘if not, why not basis’ and apply the disclosure principles. The benchmarks and disclosure principles cover an entity’s: gearing ratio; interest cover; interest capitalisation; scheme borrowing; portfolio diversification; valuations; related party transactions; distribution practices; withdrawal arrangements; and net tangible assets. A Regulation Impact Statement was prepared by ASIC and was assessed as adequate by the Office of Best Practice Regulation.
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