PHOTO: Agents are being warned not to give financial advice to tenants struggling to pay rent. Photo: Dan Soderstrom
Real estate agents have been warned they could face fines and even jail time for offering unlicensed financial advice to tenants struggling to pay their rent amid the coronavirus crisis.
The Australian Securities and Investments Commission has called on real estate institutes across the country to remind agents that they were unqualified to provide financial advice.
“ASIC is aware that some real estate agents are advising tenants who are unable to pay their rent, or who may find themselves in such a situation in future, to consider applying for early release of their superannuation,” wrote Tim Mullaly, executive director of financial service enforcement, in a letter to the real estate institutes in each state.
“Financial advice must only be provided by qualified and licensed financial advisers, or financial counsellors, not by real estate agents who neither hold the requisite licence, nor are an authorised representative of an Australian Financial Services Licensee.”
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