Growing concern about the lack of regulation on property investment has led one industry body to push the government to take action.
The Property Investment Professionals of Australia (PIPA) is particularly concerned about the lack of clarity and regulation of advice on issues related to self-managed superannuation funds (SMSFs), as financial services professionals question their role and the roles of others within the SMSF process.
According to PIPA, financial services professionals remain tentative about just who can legally guide SMSF customers through the process of investing in property.
“Our observation is that financial planners, accountants and mortgage brokers remain uncertain about who can recommend a property for investment within an SMSF,” PIPA chair Ben Kingsley said.
“And if industry professionals are confused, then what hope does that give us that consumers will navigate this investment channel successfully?
“With SMSFs attracting a growing number of Australians, many of whom are looking to invest in property, the lack of appropriate regulation is putting the retirements of millions of Australians at risk.
“Once again, we are calling on ASIC and the federal government to get up and take action and regulate property investment.”
While a vast majority of accountants, brokers and financial planners would all do their best to help clients make smart investment choices, a lack of regulation leaves consumers vulnerable to less scrupulous operators, namely property spruikers and marketeers, Mr Kingsley said.