FPA News – ASIC real estate review

ASIC has announced the second stage of its review of the regulations governing the financial advice activities of real estate agents.

ASIC introduced an interim policy statement late last year to require strata title schemes to comply with the Managed Investments Act, a move strongly supported by the FPA. The FPA says some agents promote property as a superior investment while encouraging the use of negative gearing and believes real estate agents who provide investment advice should be subject to the same controls as investment advisers.

Talks are continuing between the FPA and Financial Services Minister Joe Hockey about the GST and its effect on financial planners. In particular, the FPA seeks to clarify which financial services will be input-taxed and whether the imposition of a "readily identifiable fee or charge" by a planner means GST will apply and the planner can claim input credits. The FPA is also concerned about how the GST will apply in relation to fees charged for service as opposed to commissions derived.

Preparations for the new CFP program, available from July 1999, continue at the University of Western Sydney. The new program will be launched by Financial Services Minister Joe Hockey on February 1 in Sydney.

The CFP Conference will be held in Sydney on April 8-10 at Novotel Brighton Beach. Those interested in registering should contact FPA conference manager Jennie Murray on 02 6260 4567.