ASIC warns planners off mezzanine financing

ASIC is cracking down on mezzanine financing of property developments amid fears that the property slowdown could leave many retail investors out of pocket. The regulator would be “looking very carefully” at financial planners who receive high commissions to push the investments to “mums and dads”. Mezzanine investors typically receive high interest rates but rank behind the holders of first-mortgage security when it comes time to repay the capital.