Property Tutors no income property investment adverts criticised by FMA
Friday 28 October 2011
The Financial Markets Authority (FMA) is warning potential property investors with no income – currently being targeted by newspaper adverts from Property Tutors Ltd – to seek legal and financial advice.
By The Landlord
The Property Tutors advert invites potential investors' to a seminar where they will be told the "systems" to buy property "even if you do not have an income."
"We will be giving you insight into the lending tools, which give us the ability to buy property under the hammer at auction, even if you have no or minimal income," the advert says.
Landlords is aware the advert has also been drawn to the FMA's attention over concerns Property Tutors' Sean Wood and Steve Goodey are referred to as Registered Financial Advisers (RFAs).
An email seen by Landlords, sent by a senior investment professional, said, "I question whether such presenters, being Registered Financial Advisers, even while presumably presenting at a 'class' level, can ever be said to be meeting the skill, care and diligence requirements of the Financial Advisers Act in promoting such a product/service to people with no income."
FMA chief executive Sean Hughes said investors need to be fully aware of the costs of property ownership and debt servicing, market fluctuations and the risk of losing assets used as security.
He said anyone considering taking on debt for investment purposes should obtain independent legal and financial advice from a registered or authorised financial adviser.
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