‘The Ministerial Council for Consumer Affairs started looking at the problem of unregulated and unscrupulous practices by property spruikers in 2003. In 2005, the Parliamentary Joint Committee on Corporations and Financial Services reported to government, calling for property investment advisers to be regulated under the federal financial services regime. In 2008, we are beginning another consultation process. Meanwhile, property spruikers have continued to operate by skirting the boundaries of regulation, and through unscrupulous practices, causing harm to consumers.
‘The REIA is pleased that the Government is approaching the problem as a financial services issue, rather than a property sector issue, with a need for national regulation. It is our view that self-regulation should not be an option. Clearly, the financial services industry has not self-regulated in the past on this important issue, and comprehensive regulation by Government is required.
‘This should not however impose further regulatory burden on licensed real estate agents performing their regular business of acting as agents in the sale and management of property, and who are already strictly regulated by State and Territory real estate licensing regulations,’ says Noel Dyett.