29 October 2008
The Federal Government has outlined proposals to provide funding to the Australian Prudential Regulation Authority (APRA) to allow mortgage funds to apply for approved deposit-taking institution (ADI) status. While efforts to engage with government by IFSA and others are ongoing, the proposal as we understand it at this early stage is unlikely to lead to the release of suspended funds to investors in the immediate short-term. Even for funds that seek ADI status – and it is unclear as yet how many would do so – this process could take some time even with the additional funding announced.
Our message to you:
~ we continue to monitor this situation closely
~ considerable efforts are being made at Government and industry level to address the issue, which was an unintended consequence of the government guarantee on certain savings deposits
~ distributions may still be made from most impacted funds in the meantime
~ guidelines issued by each fund on suspension periods remain the most appropriate guide at this stage
~ we will continue to keep you informed as developments are moving quickly, please keep checking this page for more updates.