Should property advice be regulated?
This has been a hot topic of late, as property “spruikers” have been in the news facing charges of undisclosed secret commissions and kickbacks. This is certainly not new news, as any property investor will tell you- names like Henry Kaye immediately bring a bad taste to the mouths of those who fell for his schemes. (Henry Kaye’s empire was prosecuted by ASIC in 2003 for providing false and misleading investment advice to property investors. In 2010, Kaye was disqualified by ASIC from managing corporations for five years)
As property itself is not regarded as a financial product under the Corporations Act, anyone in the real estate industry can give advice on real property and they are not obligated to abide by the Corporations Act nor do they come under the scrutiny of ASIC. Unlike financial planners, who are obligated under a myriad of regulation, it pays for consumers to be aware when they are seeking advice or guidance from property professionals, including buyers agents. As the President of REBAA I am naturally very supportive of high standards in our industry and was asked for my comments, along with others in the industry, on this topic recently by Property Observer. Read article here.