The corporate regulator cautioned investors about the transparency and potential high risks in the unlisted property trust sector.
According to The Australian Financial Review, some of the best performing trusts are booking returns nearly 20 times higher than the most competitive fixed-term deposit accounts.
“When schemes are not adequately disclosing those risks, investors are put in a vulnerable position,” said ASIC commissioner Greg Tanzer.
The newspaper reports fund managers claim they have learned from mistakes made in the lead up to the global financial crisis, where platforms emerged with similar returns that are well above typical levels. The Property Funds Association says its members have adopted simpler structures and have become more transparent.