Most financial planners don’t have the skills to give specialised property advice, so PIPA is asking for advisers working in the area to upskill to become specialised property advisers, Kingsley said.
The other option is to work on a referral basis so clients are still able to get specialised advice, he said.
“The adviser’s going to have to make a decision themselves in terms of whether they think they can upskill,” he said.
Kingsley said he would be confident in advisers to do that but that those not wanting to upskill could certainly outsource to a property specialist.
“Although it’s not regulated we like to think it is an investment grade product. So if they do believe they have a fundamental understanding of how things grow in value and how they perform then they could certainly look at doing in themselves and I would encourage them to do that,” he said.
It could also create an issue in terms of professional indemnity insurance, in which case advisers may need to consult at the dealer group level because they may not be able to give that kind of advice, Kingsley said.
“If that is the case then they should be looking for members of [PIPA or] qualified property investment advisers to help them in that space.”
Kingsley added PIPA would welcome government consultation over regulations in the property advice space and suggested further tweaks to regulations would be needed.
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