Fractional property firm DomaCom today announced it has received ASIC clearance that will allow it to deliver an equity release product for the asset-rich, cash-poor retiree cohort.
The Australian Securities and Investments Commission (ASIC) has issued a relief instrument that clears the final regulatory hurdle for DomaCom’s Senior Equity Release (SER) product.
DomaCom chief executive Arthur Naoumidis said: “This is a major milestone for DomaCom as we have been working with ASIC for over six years to obtain the necessary regulatory framework for our Senior Equity Release product.
“With the large baby boomer cohort entering retirement, the need for equity release funding over the next five to 10 years should be very significant and our SER product will help the $3 trillion superannuation sector to provide the capital needed.”
After the big four banks recently withdrew from the reverse mortgage market, an alternative source of funding is needed that will allow retirees to sell “fractions” of their homes, Naoumidis added.
The SER product will be structured as a financial product that can be provided by financial advisers who complete an accreditation course for the product.
“Financial advisers will now have an additional tool to assist them with intergenerational family wealth planning to manage the upcoming transfer of wealth between generations,” Naoumidis said.
DomaCom will now work to deliver the SER product to the market and is looking to roll it out in the first half of 2019.