State government considers crackdown on property spruikers

by Mackenzie McCarty30 Sep 2013

The New South Wales state government is considering a crackdown on SMSF property spruikers, saying it could require people who give property investment advice to be licensed.

As reported in April by Australian Broker, ASIC announced plans to heavily focus on SMSF property investment professionals this year in an effort to thwart ‘spruikers’ in the industry.

The regulator’s commissioner, Peter Kell, said that a certain level of market confusion existed with regards to operators recommending that investors purchase a property through an SMSF, with some mistakenly thinking they don’t require and AFS licence.

However, there is currently no specific regulation of the property investment advice industry and Roberts tells the Australian Financial Review that this includes no requirement to hold a license as either a real estate agent or an Australian financial services licence issued by ASIC.

Small business minister, Bruce Billson, adds that state and federal agencies, which share the regulation of property spruikers, are examining if they are regulated by obligations under the Australian Consumer Law.

“I look forward to working with my state and territory colleagues to ensure that consumers are adequately protected and aware of the risks associated with speculative property investments,” he says.