Association Incorporated in Victoria Registration No: A0053975R
ABN: TBA
+61 411 507 505
owenlennie@lightofday.com.au
PO Box 7643
MELBOURNE VIC 3004
Media Release
30 January 2010
Horse Racing Industry better than ASIC in Disclosing Investment Risk
There is more disclosure required to bet on the Melbourne Cup.
Light of Day Inc, an association of investors in the unlisted property sector, has called on ASIC
to urgently improve the disclosure of details about the loans entered into by the responsible
entities of property funds, on behalf of their investors.
The organisation has written to the Chairman of ASIC, Mr Tony D'Aloisio, calling for action, whilst at the
same time releasing a Transparent Paper on the need to reform the current legislation.
In a letter to the Chairman of ASIC, Owen Lennie, the Spokesperson for Light of Day, said an improved
disclosure of the position in respect of each loan entered into by the property fund or property syndicate
is required.
The Association believes that the enhanced disclosures required will enable proper scrutiny of lending
agreements, which are currently negotiated in private.
Mr Lennie said the beneficial owners of the real estate used as security for these loans should be
entitled to know what has been agreed in their name.
“Under current legislation and practice the risks associated with borrowing cannot be assessed by
investors, leaving many of the 240,000 investors in the unlisted property trust sector with a major lack of
vital information.”
Mr Lennie said at present there is more disclosure required to bet on the Melbourne Cup and the
bookies by law have to display the odds in a way that is easy for the punter to understand.
“In the case of the $60 billion unlisted property trust sector, there is no such detailed disclosure
demanded by ASIC.
“You could imagine the riot at race tracks around Australia if bookies offered bets without
displaying the odds!
In the letter the Association commends ASIC on the current RG 46, which systematises some disclosure
in relation to borrowings but concludes that further details are required to make the disclosure effective.
The enhanced disclosures are required to allow the members of the Association and the other investors
in the $60 billion unlisted property trust sector to properly understand the risks inherent in their property
funds and property syndicates, Mr Lennie said.
Note: White Paper available.
Media Enquiries:
Owen Lennie, Spokesperson, Light of Day Mobile: 0411 507 505
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