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.”
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 21 Aug 2016Risks flagged with real estate appraisal valuesBy Miranda Brownlee
- 21 Aug 2016Lawyer challenges ATO view on two fund strategiesBy Miranda Brownlee
- 18 Aug 2017ATO locks in details, addresses panic on real-time reportingBy Katarina Taurian
- 18 Aug 2017Data feeds unreliable for new reporting, says mid-tierBy Miranda Brownlee
- 18 Aug 2017Tax component confusion spurs potential tax liabilitiesBy Miranda Brownlee
- 18 Aug 2017Contributions triple in June quarter, survey showsBy Staff Reporter
- view all
- ATO locks in details, addresses panic on real-time reporting
The tax office has addressed several points of confusion with the new events-based reporting regime, locked in key deadlines, and outlined w...read more
- Data feeds unreliable for new reporting, says mid-tier
With an estimated 20 per cent of SMSFs still encountering errors from data feeds, one mid-tier firm believes the ATO should allow SMSF pract...read more
- view all