Why Is There Such A Lack of Regulation in the PI Industry?

Want to advise on a $20k insurance policy? You need formal qualifications.
Want to advise on a $800k OTP IP? You just need a smile and know how pitch depreciation!

As a new investor the one thing that I can't understand is the lack of regulation around those who can give investing advice. Why is that this side of the property industry is still so unregulated? The only reason I can find is because "real property" is not a “financial product” in the eyes of the Corporations Act.

When I was first being flogged an OTP, I asked the sales guys what his qualifications were (I assumed he would need some) but was shocked when he said not only did he not need any sort of formal qualifications or training to offer advice but there isn't even a regulatory body.

I know PIPA have been lobbying for regulation and licensing for years but has much come of it?

 

Well he should have had a sales person registration to be selling OTP for a start..... which requires a cert 4 certificate in property services

 

I think he does the leg work and brings the potentials in and gets commission once they sign. Still advised me on what to buy and when. Would be still need the Cert for that of work?

 

Yes, definitely.

 

Unless the salesbod was licensee, they'd only require the certificate of registration (you still get those out of a corn flakes packet).