Planners confused on SMSF property advice: PIPA
The Property Investment Professionals of Australia (PIPA) is concerned about the lack of regulation around property investment in Australia, particularly in regards to self-managed super funds (SMSFs).
It said accountants, financial planners and mortgage brokers were tentative about who could legally lead SMSF trustees through the property investment process.
PIPA said that without regulation, financial services professionals were confused about their role and the roles of others within the sector.
"If industry professionals are confused, then what hope does that give us that consumers will navigate this investment channel successfully?" PIPA chair Ben Kingsley asked.
Kingsley said that as more and more Australians launched SMSFs, a lack of appropriate regulation around SMSF property investment was jeopardising the retirement savings of millions.
PIPA called on the Federal Government and the Australian Securities and Investments Commission (ASIC) to take some action on the issue.
It said although the majority of accountants and planners would support their clients in making sound investment decisions, a lack of regulation left consumers open to less scrupulous operators such as property spruikers and marketeers.
Despite the good intentions of some, they simply did not have the qualifications to provide sound property advice, Kingsley said.
"PIPA's message to anyone operating in the financial services space where property investment is involved, including self-managed super, is to look after the customer where you are qualified," he said.
Without regulation, the best go-to for property investment advice was a qualified property investment adviser (QPIA), Kingsley said.
"QPIA's are formally educated and qualified to provide advice around property investment and adhere to strict guidelines and codes of ethics which support the best interest of the consumer," he said.
PIPA was committed to seeing regulations imposed, but in the meantime sought collaboration among the industry to improve the professionalism of property investment advice in Australia.
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