ASIC has warned the real estate industry that agents recommending investors use a self-managed superannuation fund (SMSF) to invest in property must ensure they are appropriately licensed to provide the advice. ASIC said it is working with the Real Estate Institute of Australia (REIA) to ensure that real estate agents understand their legal obligations.
ASIC said it has written to the REIA, the state and territory real estate institutes and property investment associations (real estate bodies), setting out its concerns and asking the real estate bodies to communicate these to its members.
ASIC is concerned that with the increased popularity of SMSFs and property investment, real estate agents may not realise they are providing financial product advice and need an Australian financial services (AFS) licence when making recommendations or statements of opinion to a person to use an SMSF to invest in property. If providing this advice, agents must ensure they comply with legal obligations under the Corporations Act 2001, ASIC said.
Source: ASIC release 13-304MR, 6 November 2013
[LTN 215, 6/11/13]