Licensing looms for property spruikers as NSW moves in SMSF crackdown

Published 30 September 2013 10:33, Updated 30 September 2013 10:51

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Licensing looms for property spruikers as NSW moves in SMSF crackdown

NSW Fair Trading Minister Anthony Roberts is examining the introduction of licences for property investment advisors. Photo: Katherine Griffiths

NSW is considering requiring people who give property investment advice to be licensed to curb the resurgence of spruikers, who are now targeting self-managed superannuation funds.

Falling interest rates and rising prices combined with changes to self-managed superannuation have sparked a resurgence in hothouse style property spruikers.

NSW Fair Trading Minister Anthony Roberts said the state was looking at whether property spruikers should have to hold a licence.

“There is currently no specific regulation in the property investment advice industry, including no requirement to hold a licence as either a real estate agent issued by NSW Fair Trading or an Australian financial services licence issued by the Australian Securities and Investments Commission,” his spokesman said.

At the national level, Small Business Minister Bruce Billson said state and federal agencies, which share the regulation of property spruikers, were examining if they were regulated by obligations under the Australian Consumer Law.

“I look forward to working with my state and territory colleagues to ensure that consumers are adequately protected and aware of the risks associated with speculative property investments,” Mr Billson said.

State and federal regulators resolved in July to work on a national approach to property investment promoters.

Read the full story at The Australian Financial Review.