Following the appointment of receivers to Banksia Securities Limited ASIC has announced a review of the regulation of the unlisted debenture sector.

Currently a disclosure regime is in place for debentures, together with the requirement that a trustee is in place to monitor the issuer and seek to protect the interests of debenture holders.

Debenture issuers unlike banks, building societies and credit unions are not generally regulated by APRA nor are there any prudential standards that apply.