Inquiry into regulation of property investment advice
Terms of reference
On 8 December 2004, the Parliamentary Joint Committee on Corporations and Financial Services resolved to inquire into the regulation of property investment advice by the Commonwealth, with reference to:
(a) the effectiveness of current regulation (including the Trade Practices Act 1974, the ASIC Act and the Corporations Act 2001) of the property investment advice industry in protecting consumers;
(b) allegations that property investment advisers engage in behaviour including:
i. characterisation of their activities (for instance, as "education seminars") in order to avoid regulation;
ii. habitual use of high pressure selling techniques in order to induce investment decisions;
iii. failure to disclose interests they may have in properties they are selling;
iv. failure to disclose commissions and fees associated with their services; and
v. failure to provide appropriate disclosure of downside risk associated with the property or financial products they recommend;
(c) whether it is appropriate for property investment advisers to simultaneously sell an interest in property and financial products enabling such purchases;
(d) advantages and disadvantages of possible models for reform of the property investment advice industry including:
i. national coverage through uniform state and territory legislation;
ii. Commonwealth legislation; and
iii. a scheme of self-regulation of property investment advisers on a national basis; and
(e) whether current legal processes provide effective and easily accessible remedies to consumers in dispute with property investment advisers.
The Committee will report on the inquiry by 23 June 2005.
Written submissions are invited and should be addressed to:
The Secretary
Parliamentary Joint Committee on Corporations and Financial Services
Suite SG.64
Parliament House
Canberra ACT 2600
The closing date for submissions has been extended until 25 February 2005.
The Committee prefers to receive submissions electronically as an attached document – email: corporations.joint@aph.gov.au.
Submissions become Committee documents and are made public only after a decision by the Committee. Persons making submissions must not release them without the approval of the Committee. Submissions are covered by parliamentary privilege but the unauthorised release of them is not.
Following consideration of submissions, the Committee will hold public hearings. The Committee will consider all submissions and may invite individuals and organisations to give evidence at the public hearings.
Special access and other arrangements will be made if prior notice is
given.
Information relating to inquiries by parliamentary committees, including notes to assist in the preparation of submissions for a committee, can be located on the internet at http://www.aph.gov.au/senate/committee/wit_sub/index.htm
Inquiries from hearing and speech impaired people should be directed to the Parliament House TTY number (02) 6277 7799. Adobe also provides tools for the blind and visually impaired to access PDF documents. These tools are available at: http://access.adobe.com/. If you require any special arrangements in order to enable you to participate in a committee inquiry, please contact the committee secretary.
For further information, contact
Committee Secretary
Parliamentary Joint Committee on Corporations and Financial Services
PO Box 6100
Parliament House
Canberra ACT 2600
Australia
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