CITY Pacific has rebranded its City Pacific Mortgage Trust to the City Pacific First Mortgage Fund.
In June 2005, the Australian Securities and Investments Commission imposed licensing conditions and disclosure requirements on City Pacific Mortgage Trust.
The provisions relate to members’ rights to withdraw from a managed investment scheme. The Act places certain restrictions on members’ rights to withdraw from schemes which are not liquid schemes under the definition in the Act.
ASIC was concerned that amendments to the Constitution of the trust in 2001 and 2005, regarding the specified period for members to withdraw from the trust, may be invalid. This meant that CPL had 90 business days to meet a members’ request for a withdrawal from the ‘On Call’ investments in the Trust, not five business days, as promoted by CPL.
And ASIC also made additional conditions requiring CPL to engage external experts, acceptable to ASIC, to review the loan book and underlying mortgages in the scheme and the liquidity of the scheme pursuant to the Act.
Yesterday, managing director Phil Sullivan said the new name better describes the fund’s activities and that there would be no changes to the fund’s operations or the management team making the investment decisions.
“The name change to City Pacific First Mortgage Fund will help make it clearer to our investors and the market that all loans in the Fund are secured by Registered First Mortgages over real property,” he added.
City Pacific will issue a new Product Disclosure Statement on the December 01 2007.
Australian Property Journal
