Real Estate Agency Provided Financial Advice

Discussion in 'Legal Issues' started by RPI, 9th Nov, 2016.

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  1. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    RPI, 9th Nov, 2016
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    "found the group has been unlawfully carrying on a financial services business for over five years by providing advice to clients to purchase investment properties through a self-managed super fund (SMSF)."

    It seems they were doing it for 5 years too. Why was ASIC so slow to act!
     
    Terry_w, 9th Nov, 2016
    #2
  3. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    That would be only 1 of hundreds or thousands I would imagine.
     
    RPI, 9th Nov, 2016
    #3
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  4. Jacque

    Jacque Jacque Parker Premium Member

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    "ASIC’s action against Park Trent has highlighted there are serious consequences for property spruikers who break the law by providing unlicensed financial product advice"... You don't say :rolleyes:

    They certainly took their time, though to be fair they began investigations in 2014 but at least this is a positive outcome and hopefully a warning to others not to provide financial advice without the relevant licences.
     
    Jacque, 9th Nov, 2016
    #4
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  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    It would be difficult to imagine how a AFSL could even be issued to a spruiker business. A single financial product model that fails to account for the diverse financial needs. ?? A model that preys on those who arent experienced investors and unfamiliar with super and they make recommendations without considering the needs of those people ?

    There are some great property advisers out there but there are some sharks too. I would be even more concerned if a property spruiker had a AFSL and used that to peddle confidence that their advice is compliant. I reckon the "advice" would have more holes than a indonesian fishing boat. Its a more sophisticated scheme than the old gold Coast days of flogging apartmnets to the southerners based on high valuations and controlled sale pitches combined with "pre-approved finance". Its not that different.

    It was never going to be. This is about being unlicensed to give financial advice not about real estate spruikers who need to go and get licensed.

    Its also a education issue for property buyers. They keep buying up the get rich stories and paying people a stack for it. I got threatened by that RE firm twice for using the word 'spruiker" and suggesting they were unlicensed. I can only tell people not to drink the cool aid.

    PS : I dont earn a cent from selling property. Thats often the first question to ask any adviser...How do they make their $ ?
     
    Paul@PAS, 9th Nov, 2016
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