SPAA lauds ASIC move against property investment promoter

The SMSF Professionals’ Association of Australia (SPAA) welcomes the decision by ASIC to take legal action against unlicensed financial advice being provided to existing and potential SMSF trustees.

SPAA CEO/Managing Director Andrea Slattery says: “SPAA has long been critical of property developers and property investment entities advising consumers to establish an SMSF to buy an investment property, so for ASIC to initiate legal action is a positive step towards ending this unscrupulous behaviour.”

ASIC announced yesterday it had begun proceedings in the NSW Supreme Court seeking interim and final orders to prevent property investment promoter, Park Trent Properties Group, from carrying on an unlicensed financial services business involving the promotion of SMSFs to buy investment property.

Slattery says: “These activities, on the fringes of the SMSF sector, can unfairly distort perceptions of the sector and it is positive that ASIC, as the regulator of financial advice, is playing its role in stamping it out.

“Property as an asset can form part of an investment strategy for SMSFs, but should be considered along with other factors as part of a diversified portfolio that allows trustees to meet their long-term retirement goals.

“In SPAA’s experience, many trustees, and those thinking of establishing an SMSF, need to get specialist advice when deciding to set up an SMSF or put together an investment strategy.

“SMSFs are a proven vehicle for Australians to become more engaged with their superannuation, but it is important that the right safeguards are in place to protect the integrity of the sector. This announcement by ASIC is an important step in that direction,” she says.