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REIA launches financial advice course

14 March 2017

The Real Estate Institute of Australia (REIA) in partnership with the Institute of Public Accountants (IPA) has launched a new training course for real estate agents providing property investment advice.

REIA President Malcolm Gunning said the RG146 Advice in Real Estate Course designed by the IPA and provided through Mentor Education will allow property investment advisers, mortgage brokers, accountants, agents and property developers to discuss the general drivers and considerations associated with a property investment decisions.

Mr Gunning added: “Offering this course to agents is part of a broader strategy to professionalise the industry and to provide clients the level of advice they desire from agents providing a comprehensive service.

“Upon completion of the course, agents will have satisfactorily fulfilled the Australian Securities and Investments Commission’s (ASIC) RG146 requirements and will be able to offer general advice on financial products and services.

“This will also allow them to provide factual advice on what the products are and what they do.”  

Agents undertaking the course will gain a nationally recognised competency to provide factual advice on financial products and services. 

Factual advice is defined by ASIC as ‘objectively ascertainable information whose truth or accuracy cannot be reasonably questioned’. 

This compares to general advice which ASIC defines as ‘advice prepared without taking into account the client's objectives, financial situations or needs’. 

Mr Gunning said: “ASIC have indicated that successful completion of the RG 146 course would allow agents to conduct seminars, presentations, office and sales meetings and to discuss in general terms others such as Self Managed Superannuation Funds.

“However, an agent would need to need to be authorised by an Australian Financial Services licensee to provide this advice or alternatively obtain an AFS licence themselves.” 

REIA commenced discussions with IPA regarding the establishment of a tailored course for real estate professionals regarding property advice following a Supreme Court of NSW decision in October 2015 against Park Trent Properties Group Pty Ltd regarding advice real estate agents give particularly as it relates to SMSFs.

An outline of the course together with enrolment details can be found here. REINSW members will receive a 10% discount for being a member of the REIA.