Regulator drafts new real estate rules

ASIC has invited agents to offer feedback on changes it wants to make to two class orders involving the real estate industry.

The financial services regulator is obliged to propose these changes as the two class orders, 00/213 and 05/1243, are due to expire next year.

ASIC said only minor changes are needed, because the class orders are operating effectively.

Class order 00/213 gives real estate professionals some relief from the disclosure and licensing requirements of the Corporations Act when they are involved in selling shares in a real estate company.

Class order 05/1243 gives real estate professionals full relief from the licensing requirements of the Corporations Act when they provide financial product advice involving a valuation of shares in a real estate company.

ASIC’s proposed changes would clarify that the licensing relief for real estate agents applies to general advice and dealing.

It would also modernise the language, simplify the drafting to give greater clarity and combine the two class orders into one instrument.

ASIC said that the policy underlying the two class orders offers adequate consumer protection without being unreasonably burdensome or expensive for real estate professionals.

Click here for ASIC’s draft instrument.

[Related: ASIC punishes property and finance group]

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