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Viewing entries tagged with 'land investment product'

May 6

Real Estate Agents currently exempt from new Financial Advisers Act

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Real Estate agents have a special exemption from having to comply with the requirements of the recently introduced Financial Advisers Act, providing that the advice they give is in the ordinary course of the business of a Real Estate agent. There are some interesting comments about this in the attached article, including  “A true professional in any field always puts their clients’ interests ahead of their own.  Therefore a real estate agent, a professional, would also ask themselves whether they have the competence to be able to provide the advice, which might include the ability to conduct a proper suitability analysis for their client. If the answer is no (as we’d often expect it to be in the case of complex property investment schemes) the agent should recommend that their client sees an AFA.

April 14

The Property Investment Loophole

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This article and the related links raises some pertinent points about the protection provided to property investors under the new Financial Advisers Act. Investors, now so more than previously, should be very selective and careful about whom they deal with for "investment advice", including property. While it does seem that Real Estate agents will still be able to sell investment property without having to meet the requirements of the Financial Advisers Act, the adage 'Caveat Emptor' still applies. As a Real Estate agent who specialises in investment property I am working to become an AFA (Authorised Financial Advisor) in order to provide a significantly greater degree of professionalism, protection and confidence to my clients. Because this is not a legal requirement for real estate agents, and because of the significant time and cost involved in training and establishing compliance systems and processes, I am one of the few, if not the only NZ Real Estate agent becoming an AFA. However, I do believe that those investing in property deserve the same protection and professionalism as those investing in other asset classes.