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ISCOVER
Staff Reporter
The Property Investment Professionals of Australia has welcomed ASIC’s announcement that it plans to “crack down” on wayward operators within the SMSF space.
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Last week, ASIC revealed the findings of its first major investigation into the self-managed super fund sector, which showed poor advice was being given to investors.
PIPA’s chair Ben Kingsley said he welcomed ASIC’s decision to clamp down on the industry keep a watchful eye over advisers dealing in the space.
“Such news is welcomed strongly by PIPA, who has long held grave concerns about property spruikers, particularly those targeting SMSF investors,” Mr Kingsley said.
“As ASIC would be fully aware, reports of Australian investors suffering at the hands of unscrupulous marketeers are all too common and such cases have the potential to explode as interest in property investment via SMSFs continues to grow.”
While PIPA welcomed ASIC’s heightened awareness of property spruiking, the association remains concerned about the provision of advice with regards to property investment within SMSFs.
“ASIC’s investigation found that the majority of advice provided to SMSF trustees by financial planners and accountants is adequate,” Mr Kingsley said.
“While ASIC remains comfortable for such professionals to provide advice on property selection however, PIPA believes trustees not only require but deserve specialised property investment advice.
“From PIPA’s perspective, financial planners and accountants lack understanding and formal education in relation to real property so we believe they have two choices when it comes to providing their clients with advice around SMSF property selection.
“One, they can refer their client to someone who does have formal property investment advice accreditations – or they can undertake their own formal qualifications in order to deliver qualified property investment advice and a more all inclusive service.
“PIPA will continue to lobby the Australian government to regulate the property investment industry – and this is top of our agenda. But for the here and now, we are calling on financial services professionals to act in the best interests of the customer, and either up skill in order to provide advice around property investment, or refer your client to someone who is appropriately accredited.”
