ASIC grant DomaCom's Senior Equity Release after six year pursuit

ASIC has issued a relief instrument that will allow fractional investment platform DomaCom to deliver an equity release product for the ageing retiree cohort who are asset rich and cash poor.

DomaCom CEO Arthur Naoumidis said the result was a major milestone for DomaCom.

“We have been working with ASIC for over six years to obtain the necessary regulatory framework for our Senior Equity Release (SER) product," Naoumidis said. 

“With the last big four bank recently withdrawing from the reverse mortgage market, we believe there is a need for an alternative source of funding that will enable retirees to sell fractions of their house whilst remaining in their home and enjoy a contented retirement in their later years.

"With the large baby boomer cohort entering retirement, the need for equity release funding over the next 5-10 years should be very significant and our SER product will help the 3 trillion-dollar superannuation sector to provide the capital needed.”

The SER product will be structured as a financial product to be provided by financial advisers who complete an accreditation course for this product.

“The financial advisers will, for the first time, have a financial product available that will enable them to assist their retired clients in funding their lifestyle using their most significant asset– their home.

"Also, 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.” 

DomaCom will now focus on the work needed to deliver the SER product to the market and is targeting the first half of 2019.