- Joined
- 8 July 2009
- Posts
- 465
- Reactions
- 0
b/t informed a unit holder that the RG45 (the following benchmarks) are contained on pages 4 and 5 of the Asset Report.
Your task, should you choose to acccept it, is to find the benchmarks interwoven into the colorful pages of the Asset Report.
Good Luck!
This is from ASICs' site.
It is the list of 8 benchmarks that BT say they have disclosed on pages 4-5 within the Asset Review
http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/rg45.pdf/$file/rg45.pdf
Benchmark 1: Liquidity
RG 45.38 The responsible entity of an unlisted mortgage scheme (other than a contributory mortgage scheme) should:
(a) have cash flow estimates for the scheme for the next 3 months; and
(b) ensure that at all times the scheme has cash or cash equivalents (but not including undrawn amounts under bank overdraft or lending facilities)sufficient to meet its projected cash needs over the next 3 months.
Benchmark 2: Scheme borrowing
RG 45.47 If an unlisted mortgage scheme has borrowed funds (whether on or off balance sheet), the responsible entity should disclose:
(a) for each borrowing that will mature in 5 years or less—the amount owing and the maturity profile in increments of not more than 12 months;
Note: For borrowings that will mature within 12 months, the responsible entity should exercise judgment to determine whether it would be appropriate to disclose aggregate amounts for time bands within 12 months.
(b) for borrowings that mature in more than 5 years—the aggregate amount owing;
(c) for each credit facility—the aggregate undrawn amount and the
maturity profile in increments of no more than 12 months;
(d) the fact that amounts owing to lenders and other creditors of the scheme rank before an investor's interests in the scheme; and
(e) the purpose for which the funds have been borrowed, including whether they will be used to fund distributions or withdrawal amounts.
Benchmark 3: Portfolio diversification
RG 45.53 A responsible entity of an unlisted mortgage scheme (other than a contributory mortgage scheme) should disclose the current nature of the mortgage scheme's investment portfolio, including:
(a) by number and value, loans by class of activity (e.g. development
projects, industrial, commercial, retail, residential, specialised property,reverse mortgages);
(b) by number and value, loans by geographic region;
(c) by number and value, what proportion of loans are in default or arrears;
Benchmark 4: Related party transactions
RG 45.61 A responsible entity of an unlisted mortgage scheme who transacts with related parties of the scheme, including lending or investing scheme funds with related parties should disclose their approach to these transactions,including:
(a) details of any loans, investments and transactions they have made to or with any related party;
(b) their policy on related party transactions, including the assessment and approval process for related party lending and arrangements to manage conflicts of interest; and
(c) how the processes and arrangements are monitored to ensure their
policy is followed
Benchmark 5: Valuation policy
RG 45.64 A responsible entity of an unlisted mortgage scheme should take the following approach to valuations of properties over which it has taken security:
(a) Properties (i.e. real estate) should be valued on an `as is' and (for development property) also on an `as if complete' basis.
Note: See `Key terms' for definition of `as is' and `as if complete' valuations.
(b) The responsible entity should have a clear policy on how often they obtain valuations, including how recent a valuation has to be when they make a new loan.
(c) The responsible entity should establish a panel of valuers and ensure that no one valuer conducts more than 1/3 of the responsible entity's valuation work for the scheme, calculated by value of properties (other than for contributory mortgage schemes).
Benchmark 6: Lending principles—loan-to-valuation ratios
RG 45.70 A responsible entity of an unlisted mortgage scheme should maintain the following loan-to-valuation ratios for loans made by the scheme:
(a) where the loan relates to property development—70% on the basis of
the latest `as if complete' valuation; and
(b) in all other cases—80% on the basis of the latest market valuation.
Note 1: The loan-to-valuation ratio should be based on the unencumbered value of the property.
Note 2: The responsible entity of a contributory mortgage scheme will meet this benchmark for a particular investor if the loan in which the investor has an interest satisfies the above ratios.
Benchmark 7: Distribution practices
RG 45.75 If an unlisted mortgage scheme is making or forecasts making distributions to members, the responsible entity should disclose:
(a) the source of the current distribution (e.g. from income earned in the relevant distribution period, financing facility, application monies);
(b) the source of any forecast distribution;
(c) if the current or forecast distribution is not solely sourced from income received in the relevant distribution period, the reasons for making those distributions; and
(d) if the current distribution or forecast distribution is sourced other than from income, whether this is sustainable over the next 12 months.
Note 1: Any forward-looking statements should comply with s769C and RG 170. If a responsible entity does not have reasonable grounds for disclosing whether current or forecast distributions sourced other than from realised income are sustainable, it should explain this to investors: see RG 170.91.
Benchmark 8: Withdrawal arrangements
RG 45.81 A responsible entity of an unlisted mortgage scheme should provide details of whether investors will be able to withdraw from a scheme. If investors are given the right to withdraw from a scheme, the responsible entity should clearly disclose:
(a) the maximum withdrawal period allowed under the constitution for the scheme (this disclosure should be at least as prominent as any shorter withdrawal period promoted to investors);
REGULATORY GUIDE 45: Mortgage schemes—improving disclosure for retail investors
© Australian Securities and Investments Commission September 2008 Page 24
(b) any significant risk factors or limitations that may affect the ability of investors to withdraw from the scheme (including risk factors that may affect the ability of the responsible entity to meet a promoted withdrawal period);
(c) the approach to rollovers, including whether the `default' is that
investments in the scheme are automatically rolled over; and
(d) if withdrawals from the scheme are to be funded from an external
liquidity facility, the material terms of this facility, including any rights the provider has to suspend or cancel the facility.
RG 45.82 If the scheme promotes a fixed redemption unit price for investments (e.g. $1 per unit), the responsible entity should clearly disclose details of the circumstances in which a lower amount may be payable, together with details of how that amount will be determined.
Note: The responsible entity of a contributory mortgage scheme will meet this benchmark for a particular investor if the responsible entity discloses the above information to the investor as it relates to the investor's ability to withdraw.
Your task, should you choose to acccept it, is to find the benchmarks interwoven into the colorful pages of the Asset Report.
Good Luck!
This is from ASICs' site.
It is the list of 8 benchmarks that BT say they have disclosed on pages 4-5 within the Asset Review
http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/rg45.pdf/$file/rg45.pdf
Benchmark 1: Liquidity
RG 45.38 The responsible entity of an unlisted mortgage scheme (other than a contributory mortgage scheme) should:
(a) have cash flow estimates for the scheme for the next 3 months; and
(b) ensure that at all times the scheme has cash or cash equivalents (but not including undrawn amounts under bank overdraft or lending facilities)sufficient to meet its projected cash needs over the next 3 months.
Benchmark 2: Scheme borrowing
RG 45.47 If an unlisted mortgage scheme has borrowed funds (whether on or off balance sheet), the responsible entity should disclose:
(a) for each borrowing that will mature in 5 years or less—the amount owing and the maturity profile in increments of not more than 12 months;
Note: For borrowings that will mature within 12 months, the responsible entity should exercise judgment to determine whether it would be appropriate to disclose aggregate amounts for time bands within 12 months.
(b) for borrowings that mature in more than 5 years—the aggregate amount owing;
(c) for each credit facility—the aggregate undrawn amount and the
maturity profile in increments of no more than 12 months;
(d) the fact that amounts owing to lenders and other creditors of the scheme rank before an investor's interests in the scheme; and
(e) the purpose for which the funds have been borrowed, including whether they will be used to fund distributions or withdrawal amounts.
Benchmark 3: Portfolio diversification
RG 45.53 A responsible entity of an unlisted mortgage scheme (other than a contributory mortgage scheme) should disclose the current nature of the mortgage scheme's investment portfolio, including:
(a) by number and value, loans by class of activity (e.g. development
projects, industrial, commercial, retail, residential, specialised property,reverse mortgages);
(b) by number and value, loans by geographic region;
(c) by number and value, what proportion of loans are in default or arrears;
Benchmark 4: Related party transactions
RG 45.61 A responsible entity of an unlisted mortgage scheme who transacts with related parties of the scheme, including lending or investing scheme funds with related parties should disclose their approach to these transactions,including:
(a) details of any loans, investments and transactions they have made to or with any related party;
(b) their policy on related party transactions, including the assessment and approval process for related party lending and arrangements to manage conflicts of interest; and
(c) how the processes and arrangements are monitored to ensure their
policy is followed
Benchmark 5: Valuation policy
RG 45.64 A responsible entity of an unlisted mortgage scheme should take the following approach to valuations of properties over which it has taken security:
(a) Properties (i.e. real estate) should be valued on an `as is' and (for development property) also on an `as if complete' basis.
Note: See `Key terms' for definition of `as is' and `as if complete' valuations.
(b) The responsible entity should have a clear policy on how often they obtain valuations, including how recent a valuation has to be when they make a new loan.
(c) The responsible entity should establish a panel of valuers and ensure that no one valuer conducts more than 1/3 of the responsible entity's valuation work for the scheme, calculated by value of properties (other than for contributory mortgage schemes).
Benchmark 6: Lending principles—loan-to-valuation ratios
RG 45.70 A responsible entity of an unlisted mortgage scheme should maintain the following loan-to-valuation ratios for loans made by the scheme:
(a) where the loan relates to property development—70% on the basis of
the latest `as if complete' valuation; and
(b) in all other cases—80% on the basis of the latest market valuation.
Note 1: The loan-to-valuation ratio should be based on the unencumbered value of the property.
Note 2: The responsible entity of a contributory mortgage scheme will meet this benchmark for a particular investor if the loan in which the investor has an interest satisfies the above ratios.
Benchmark 7: Distribution practices
RG 45.75 If an unlisted mortgage scheme is making or forecasts making distributions to members, the responsible entity should disclose:
(a) the source of the current distribution (e.g. from income earned in the relevant distribution period, financing facility, application monies);
(b) the source of any forecast distribution;
(c) if the current or forecast distribution is not solely sourced from income received in the relevant distribution period, the reasons for making those distributions; and
(d) if the current distribution or forecast distribution is sourced other than from income, whether this is sustainable over the next 12 months.
Note 1: Any forward-looking statements should comply with s769C and RG 170. If a responsible entity does not have reasonable grounds for disclosing whether current or forecast distributions sourced other than from realised income are sustainable, it should explain this to investors: see RG 170.91.
Benchmark 8: Withdrawal arrangements
RG 45.81 A responsible entity of an unlisted mortgage scheme should provide details of whether investors will be able to withdraw from a scheme. If investors are given the right to withdraw from a scheme, the responsible entity should clearly disclose:
(a) the maximum withdrawal period allowed under the constitution for the scheme (this disclosure should be at least as prominent as any shorter withdrawal period promoted to investors);
REGULATORY GUIDE 45: Mortgage schemes—improving disclosure for retail investors
© Australian Securities and Investments Commission September 2008 Page 24
(b) any significant risk factors or limitations that may affect the ability of investors to withdraw from the scheme (including risk factors that may affect the ability of the responsible entity to meet a promoted withdrawal period);
(c) the approach to rollovers, including whether the `default' is that
investments in the scheme are automatically rolled over; and
(d) if withdrawals from the scheme are to be funded from an external
liquidity facility, the material terms of this facility, including any rights the provider has to suspend or cancel the facility.
RG 45.82 If the scheme promotes a fixed redemption unit price for investments (e.g. $1 per unit), the responsible entity should clearly disclose details of the circumstances in which a lower amount may be payable, together with details of how that amount will be determined.
Note: The responsible entity of a contributory mortgage scheme will meet this benchmark for a particular investor if the responsible entity discloses the above information to the investor as it relates to the investor's ability to withdraw.
