Advice provided by real estate agents may be regulated by the Financial Services Reform Act (FSRA), according to an independent report commissioned by major accountants’ body CPA Australia.

The report covered 820 people nationwide and found that of the 58% who had sought advice on investment properties in the past five years from real estate agents, 17% had problems with the advice and 10% were unhappy with the advice.

It said that of the 61% who had sought loan advice in the past five years, 9% had problems with the advice.

CPA Australia’s Financial Planning Policy Adviser Kath Bowler says consumers are “certainly encountering problems when they receive advice about purchasing an investment property or taking out a loan”.

“These problems could be addressed by expanding the coverage of the FSRA. However, if that approach were to be taken, it is essential that we learn from the mistakes of the past so that any changes are practical and workable.”