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ASIC urged to tailor 'sophisticated' borrower treatment

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Australian Broker | 28 Aug 2012, 12:00 PM Agree 0
'Sophisticated' borrowers should be spared the unnecessary impost of NCCP-mandated consumer disclosure according to one commentator, in an effort to free up lenders, brokers and their clients
  • Paul Hautaniemi | 31 Aug 2012, 01:17 PM Agree 0
    Totally agree. It's a nightmare trying to complete the Preliminary report etc when you have a client with half a dozen entities and numerous properties cross securitised. They just don't fit under the legislation which has obviously been developed for normal PAYG borrowers.
  • ozboy | 31 Aug 2012, 01:54 PM Agree 0
    Great idea but how have you "urged" ASIC I hope it's not through this article. Did you write to them?
  • Rick | 31 Aug 2012, 07:07 PM Agree 0
    What a croc ! Are you saying if a client earns $251,000 per annum working FIFO on a mine site, but otherwise has no real investments or experience with shares or property etc, THAT would make him a 'sophisticated' investor ??!!??
    A more sophisticated definition of sophisticated is required methinks.
    I would class myself as a very sophisticated investor, in several investment classes (property, shares, options, bonds) but I would not fit the above definition of high income and nett assets. Even if my example miner was in a situation where he inherited a $2.5 million family home in Cottesloe, that STILL does not make him a genuinely sophisticated (or even a novice) investor.
    A better way would be an IQ test or short exam on various investment concepts etc. ASIC could set and score these tests and then 'license' you on a 'competency' basis as a sophisticated investor. That way they turn a quid on the whole deal, which after all, is what ASIC is all about anyway ! Works for everyone then. : )
  • Marcela | 27 Nov 2012, 10:30 AM Agree 0
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