ASIC Halts Mortgage Fund: What It Means for Investors

The Australian Securities and Investments Commission (ASIC) has stopped a mortgage fund. This fund is called the RELI Capital Mortgage Fund. ASIC took this step to protect everyday investors.

ASIC wants to make sure people do not buy financial products that are not right for them.

Why ASIC Took Action

This decision came after ASIC looked closely at private credit funds. They found some issues with the fund’s paperwork. This document is called a Target Market Determination (TMD). It tells who the fund is for.

ASIC had several concerns:

• The fund might be offered to people who want it as a main part of their investments (25-75%).
• The fund’s risk level was listed as “Low to Medium.” ASIC said this was not a full measure of its risk.
• The fund said it was good for investors who want to keep their money safe.
• The fund said it did not need special rules for how it was sold.

Because of these concerns, ASIC has put a temporary stop to the fund. This means RELI Capital cannot sell the fund to new retail investors. They also cannot give advice that recommends it.

The order lasts for 21 days. This gives RELI Capital time to fix the problems.

What This Means for You

This action shows that ASIC is serious about protecting investors. They want to make sure funds are clear about their risks. They also want to make sure funds are sold to the right people.

If you are already invested in the RELI Capital Mortgage Fund, ASIC advises you to review your investment. Make sure it still fits your financial goals and your comfort with risk.

For anyone thinking about investing, it’s a reminder to always understand what you are buying. Consider the risks and if it truly suits your needs.

<img src=”https://storage.googleapis.com/gcp-bucket-5392500/asic_halts_mortgage_fund.png” alt=”An image showing a red stop sign over a house with dollar signs, representing ASIC halting a mortgage fund for investor protection.”>

If you are unsure about your investments or home loan, talk to a trusted expert. An EZ Mortgage Broker can help you understand your options and connect you with the right professionals for financial advice.

Contact EZ Mortgage Broker today for a free chat.

• Phone: 1300 050 099 or 044789007
• Email: [email protected]