A Provic company is an unlisted public company which issues debentures to investors and lends those funds on the basis of a registered mortgage and a valuation. Investors interests are governed via a number of external bodies. Each member operates under the terms of its Trust Deed. The Trustee holds a first ranking charge over each company on behalf of debenture holders and requires regular reporting as to the compliance to the deed of its lending and investing activities.
All members are licensed under the Corporations Law and hold an Australian Financial Services Licence. As a requirement to this members are required to join an external complaints scheme allowing for an impartial determination of any issues that may arise between the member company and its investors. Each member is required to display their licence and the scheme to which they belong.
PROVIC is a self regulatory body and to be a member certain conditions are to be adhered to and are often more onerous than those of the Trustee or licence. For example, the Provic regulations require an additional reserve of funds known as a Lending Risk Reserve. This is a reserve based on the amount of funds lent irrespective of any defaults. Default and arrears are reported to Provic quarterly and have additional reserve requirements. Each member company deals with their arrears, if applicable, in an ongoing manner.
Why would you turn to us?
Provic companies are investment institutions who take a personal interest in their investors and borrowers.
They provide a unique opportunity for people to invest in their region and in regional people with flexibility and at attractive returns. Many people who work in the business also live in the community with their investors and borrowers.