Additional comments Senator John Williams

Further to the majority report, Senator John Williams proposes the two following recommendations:

Recommendation 1

That the Australian Securities and Investments Commission (ASIC) has a title for non authorised deposit-taking institutions (ADIs) that lend money with real security and issue 'secured notes'.

Recommendation 2

That these companies with an average loan to valuation ratio (LVR) of 70 or less be covered by the Financial Claims Scheme from the Federal Government for deposits up to $100 000;

That these companies report to ASIC every six months detailing their average LVR for their lending. If their average LVR exceeds 70, the government should remove their Financial Claims Scheme assistance; and

That valuations for these companies must be carried out by a licensed valuer.

Senator John Williams
National Party Senator for New South Wales

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