Real estate agents and property advisers who recommend investors use self-managed superannuation funds to invest in property may not be complying with the law, the corporate regulator has warned.
In a speech, Australian Securities and Investments Commissioner Greg Tanzer noted a "sharp rise" in promoters recommending investors set up or use an existing SMSF to buy property, saying they may not be licensed to do so.
"ASIC is concerned that, with the increased popularity of SMSFs and property investment, real estate agents and property advisers may not realise that they may be carrying on a business of providing financial product advice," Mr Tanzer said.
If someone does not hold an AFS licence or is not authorised by an AFS licence, they can only provide factual information to consumers above SMSFs, not financial product advice, he said.
Agents providing financial product advice may need an Australian financial services licence or authorisation under an AFS licence, he said.