Under the Commonwealth’s Financial Services Reform Act (FSRA) 2001, all companies or individuals that provide a financial service must either hold an Australian Financial Services License (AFSL), become authorised by an AFSL holder or qualify for specific ‘relief’ from the regime under an ASIC determination.
The FSRA does not apply to real estate agents in their capacity selling individual real property. It does however include financial services provided in relation to products such as general insurance and managed investment schemes. For further information about the provision of insurance products, click here.
ASIC has advised the REIA that whilst advice in relation to investment properties is not covered by the Act, if agents 'compare the potential return on such properties to other financial products like shares or management investments they may be caught as they may be regarded as providing financial product advice in relation to shares and managed investments.
Agents providing these services will either need to be licensed or be authorised by a licensee and must also meet the requirements of ASIC's Policy Statement 146. |
