Property Investment Professionals of Australia support and are working toward the adoption of both a code of practice and active licensing of all individuals and companies involved in the Property Advice industry. While the Property Investment Industry contains many participants, the giving of advice is a specific area. PIPA considers that a person or company gives Property Investment Advice where:
1. An individual, trust, or partnership are provided advice relating to the acquisition of an investment property, where that advice relates to the ability of that property to meet future financial, investment or retirement goals;
2. Advice is provided which relates to the ability of any property to deliver a return on investment to the purchaser
3. Details about the acquisition of any property, including residential, commercial, tourism or other real property which relates to the investors’ capacity to afford the costs, both initial and ongoing of acquiring and maintaining that property, is given to any person, trust or partnership.
4. Any other matter which can reasonably be construed to constitute advice as defined by ASIC as:
‘Advice which helps you make decisions about your money. Personal advice considers your own objectives, financial situation or needs, and then recommends strategies and one or more financial products to suit you. Good advice from an experienced, well-informed financial adviser can help you save money and become more financially secure’.
Where an individual or company is providing information about the price, known rental return and physical details of a property not related to the purchaser’s financial, investment and retirement needs, that individual or company is not deemed to be providing investment property advice. This may exclude developers, real estate agents, valuers and other professionals, as long as the information provided is about the physical characteristics of a property and does not result in advice being provided.
PIPA’s position with regard to the regulation of those giving property investment advice as outlined above is that we will be working to seek a licensing regime. This regime may consist of recognition under the existing Australian Financial Services Licensing, or may require a separate licensing to cover the activities of Property Investment Advisers. We will be providing submissions and advice to government enquiries to facilitate this, and expect to lodge a submissions once the Green paper, which concerns such federal licensing, is released by Senator Nick Sherry. PIPA will subsequently support any licensing regime and seek to ensure that all of our members are duly licensed within the required period. Meanwhile, PIPA seeks to ensure that all of our members who provide such property investment advice:
1. give personal advice that suits their clients
2. take legal responsibility for their staff and representatives
3. act efficiently, honestly and fairly, and
4. meet guidelines provided by our code of conduct
Thank you for supporting our vision.