ASIC issues consumer warning on marketing in NRAS

The Australian Securities and Investments Commission (ASIC) has issued a media release warning consumers about promoters advertising the benefits of self-managed superannuation funds (SMSFs) investing in the National Rental Affordability Scheme (NRAS). A copy of this release can be found here.

As indicated in the release, ASIC are taking a keen interest in marketing within the NRAS. Whilst the release focuses on the marketing of SMSFs in NRAS, some of ASIC’s comments can be considered equally applicable to all marketing of NRAS properties. Accordingly, this release may also be of interest to those in your marketing networks.

As you may be aware, depending on the particular NRAS model you employ, the operation of an investor driven model may give rise to a Managed Investment Scheme (MIS) and the obligation to hold an Australian Financial Services Licence. The operation of a MIS without compliance with the Corporations Act 2001 (Cth) may lead to a breach of law. You should consider whether or not the means by which you operate complies with the relevant law, or whether applying to ASIC for statutory relief would be applicable in your circumstances.

If you have any concerns in relation to this matter or require advice, feel free to contact Mark Fowler on 07 3837 3600.

DISCLAIMER: This update provides general information only and is not all inclusive. It should not be considered to be legal advice. You should obtain legal advice for your specific circumstances before relying on general information.