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AFS License A Must For Realtors Advising On SMSF

All is good till the real estate agents stick to purely property based advice. The problem begins when they start advising on financial products like Self Managed Super Funds (SMSF) for investing in real estate. Australian Securities and Investments Commission (ASIC) has taken the issue by the scruff of its neck, warning real estate brokers to procure Australian Financial Services License (AFSL) before making financial recommendations. Brendan Wong for the Real Estate Business sheds light on the topic.

ASIC also believes that certain financial advisors are receiving commissions from real estate agents for exhibiting their properties in a positive light to the clients. This is not tolerable and should be banned under the heading “conflicted remuneration”, feels ASIC.

You can read the original article here.

Do you think real estate agents have the know-how to advise on financial products?