ASIC gives in-principle relief to new DomaCom product

DomaCom said the ASIC relief will pave the way for the introduction of a new suite of DomaCom products focused on the needs of ageing retirees to adequately fund their retirement. The relief will be subject to a number of conditions and requirements.

“Subject to the formal ASIC relief being granted, the senior equity release product is likely to be launched in the first quarter of 2018 and will be an innovative mechanism for retired Australians to sell part of their home to help their retirement while continuing to live in their home,” said DomaCom.

“The ASIC decision is the culmination of a four-and-a-half-year process of engagement by DomaCom with the corporate regulator.”

It is expected that the DomaCom SER product will be structured as a financial product for which a product disclosure statement will be issued and will require a financial planner to provide advice to retirees wishing to participate.

Retail investors may also be required to obtain independent legal advice and other requirements, which currently apply under the National Credit Act.

DomaCom chief executive Arthur Naoumidis said the new suite of products will enable retirees to unlock the value of their home while also giving them control and the ability to remain living in their home.

“Financial planners will now have a tool that they can use to manage the cash flow needs of retired clients as well as to facilitate innovative intergenerational wealth strategies using the family home,” said Mr Naoumidis.

Correction: A previous version of this article mistakenly inferred that ASIC has given "in-principle approval". It has subsequently been amended to clarify that ASIC has instead provided "in-principle relief".