The Property Investment Professionals of Australia (PIPA) has issued a caution to practitioners who are unlawfully giving SMSF advice.
Speaking to SMSF Adviser, PIPA chair Ben Kingsley said ASIC has made it “very clear” the association will use its powers to bring to account any party operating unlawfully.
“Furthermore, trustees of SMSFs are at real financial risk if they are taking any advice from anyone who simply doesn’t have the qualifications, licensing and skill sets to appropriately advise any SMSF trustee,” he said.
Mr Kingsley said PIPA is concerned practitioners, including mortgage brokers and real estate agents, may be talking to clients about setting up an SMSF to purchase an investment property.
“This is clearly outside of their professional scope and our regulatory laws in the financial services sector. The recommendation of setting up an SMSF can only be undertaken by a qualified and licensed financial planner or accountant,” Mr Kingsley said.
“We would recommend that any property investment advice be provided by those with some level of qualification regarding property investing, even though the industry remains unregulated.”
PIPA has long argued for increased regulation in the property investment space, with Mr Kingsley previously telling SMSF Adviser the government should legislate for property to be classed as a financial product when the purpose of sale is for investment.
“As long as property investment remains unregulated, Australian investors will remain at the mercy of profiteering property spruikers,” Mr Kingsley said.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
23 Jun 2017Trustees reminded of ‘positive’ CGT news as EOFY loomsBy Katarina Taurian
23 Jun 2017SMSF practitioners told to reassure clients in 30 June lead upBy Miranda Brownlee
23 Jun 2017SMSFs warned on 30 June cut off for electronic transfersBy Staff Reporter
22 Jun 2017Westpac veteran and SMSF exec set to departBy Staff Reporter
22 Jun 2017ATO sets compliance targets for auditors in 2017-18By Miranda Brownlee
22 Jun 2017CGT relief still plaguing trustees, says former ATO execBy Miranda Brownlee
- view all
Trustees reminded of ‘positive’ CGT news as EOFY looms
A capital gains tax (CGT) issue that was causing confusion in the industry has been cleared up by the ATO, and professionals are being remin...read more
SMSF practitioners told to reassure clients in 30 June lead up
With the focus predominantly on super members with above $1.6 million, it may be worth practitioners informing clients unaffected by the ref...read more
SMSFs warned on 30 June cut off for electronic transfers
With a significant portion of Australians missing the 30 June cut off last year when making non-concessional contributions, Colonial First S...read more
- view all