ASIC has revoked an interim stop order affecting three mortgage funds managed by Australian Secure Capital Fund after the company changed its product disclosure statement.
The regulator recorded the revocation on October 19. Its earlier order had prevented offers, issues, sales and transfers of interests in the ASCF Premium Capital Fund, ASCF Select Income Fund and ASCF High Yield Fund.
ASIC says the revised statement improves disclosure of the funds’ loan portfolios, the investor reserve account and early withdrawal fees. The initial concerns included inadequate or unclear information about diversification and the cost of disposing of an investment.
The three schemes invest in short-term mortgages secured on Australian property. Together they held A$251.8 million in assets at June 30, according to the regulator.
Removal of the interim restriction does not amount to a guarantee of returns or a recommendation to invest. ASIC advises investors to reconsider whether the products suit their objectives, finances and needs.
