Real estate agents dealing in investment property may be the next industry sector to undergo a regulatory overhaul, if the Federal Government adopts the suggestions of a report tabled recently in the Senate. And the agents won’t be resisting the move, according to their peak body.

The Senate report recommends property for investment to be included as an asset class in financial services reform (FSR) provisions.

If successful, the proposals will see the property investment advice industry governed by stringent licensing, disclosure and conduct requirements, a move Ian Wells, President of the Real Estate Institute of Australia (REIA), says is “welcomed by real estate agents”.

Mr Wells says the REIA has been calling for years for the regulation of property investment spruikers so appropriate protection for Australian consumers can be provided.

“The current situation is patently unsatisfactory,” he said. “Anyone dealing in real property should be licensed as a real estate agent. Anyone providing financial services advice should be licensed as a financial services provider.”

He says the REIA supports the recommendation that Commonwealth responsibility be adopted for the regulation of property investment advice, as with other forms of investment advice, but agents engaging in property investment advice “should not be forced to obtain an additional financial services licence if they stick to property advice”.