Financial Standard Comments - Estate agents to become RG146 certified

Comment by Craig Yates (Lifestyle Financial Group)

Craig Yates (Lifestyle Financial Group) — Mon, 20 Mar 2017 09:11:12 +1100

This is utterly unacceptable.

As we all know the number of property developers and real estate agents that have used the line 'ideal investment for your SMSF" to act as a carrot for a sale when not understanding a minuscule component of the complexities of SMSF advice has been rife and extremely dangerous.

So, after 20 hours of online training, a real estate agent that has been in business for 5 minutes will be able to provide both general and factual advice on securities and derivatives?

This is nothing more than an quick fix option to allow the property "investment" seminar operators and the spruikers to continue to run their very dangerous race and misadvise thousands of people.

Real Estate agents have continued to openly use terms such as " fantastic investment opportunity" or "unique investment potential" for years, but compared to what?

I suggest that any advertisement such as these is already giving general advice without substance and certainly does not qualify as appropriate personalised advice to a potential buyer.

I suggest Real Estate agents giving general advice on any aspect of financial services is questionable.

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Comment by Concerned Adviser of 35 years (Infocus Money Management - Caboolture)

Concerned Adviser of 35 years (Infocus Money Management - Caboolture) — Mon, 20 Mar 2017 10:35:32 +1100

Yes I totally agree, #ASIC has been so slack in keeping the real estate industry in check about using the word "#Investment". this is the old saying "give them in inch and they will take a mile" this just gives them a legal way to do what they have been doing for years, misleading clients into believing that property is the only way....., come on #ASIC step in here and say NO this is not good enough.

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Comment by Graham Jenkin (Generations Personal & Professional Advice)

Graham Jenkin (Generations Personal & Professional Advice) — Mon, 20 Mar 2017 12:03:47 +1100

Also totally agree with Craig's comments. How in running an advertisement can anyone use terms such "ideal investment, "fantastic investment opportunity" or "ideal for SMSF?"

Ideal and fantastic for whom? The negative gearer? The elderly person looking to boost retirement income? The SMSF Trustee with too much cash but with a conservative and low risk profile?

How can an estate agent then sell a property after only providing factual and/or general advice? Doesn't the property then become a financial product, meaning a Statement of Advice should be prepared? Especially if the funds are coming out of an investment product for the purchase. Replacement advice with full comparisons of risks and fees, including rates, insurances, rental agent fees etc.

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