All Topics / Legal & Accounting / To what extent is advise/ recommendations ilegal?

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  • Profile photo of Jessica 8285Jessica 8285
    Member
    @jessica-8285
    Join Date: 2007
    Post Count: 6

    Hi,

    I am hoping someone can help me with this unusual query.

    I am currently discussing with close friends their budget & giving them advise for saving & setting them goals for saving money in order for them to enter the property market & showing them that its actually quite easy to what they assume & its not so daunting. I also give them a quick brief run down on the basics like what negative gearing means. I recommend they do some research & maybe go to a few seminars to gain more knowledge & understanding. I then direct them straight to a Broker once they reach their goal. I in no way give them financial advise, tell them how to spend their money or where/what to buy I mealy help them organise & get their funds into order to prepare them for property. A good kick in the a*s.

    At which point if any does the above become illegal? If i were to continue this with my friends, friends then is that illegal & classed as financial advice & i would need to be accredited??

    Now remembering i do not tell them what to do with their money & i just ask them what they want & then show them ways to change their budget & set goals so they can get where they want to be.

    Thanks Jess

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    I don't think you need to be licenced to give advice on property. But it doesn't sound like you are giving advice anyway.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Jessica 8285Jessica 8285
    Member
    @jessica-8285
    Join Date: 2007
    Post Count: 6

    On the property side i am giving basic knowledge which i know is not illegal in anyway. But my main problem is me giving advise on how to save money & creating budgets for people because this means i will be asking & receiving their financial info like what their loans are (personal, mortgage & Credit Cards), how much they still owe & the rates on those.

    I do have my privacy act cert & general advise tier II but im pretty sure they expire this year :( but i dont know if they are enough anyway.

    Profile photo of rukruk
    Participant
    @ruk
    Join Date: 2008
    Post Count: 21

    are you charging for this advise.

    Profile photo of Jessica 8285Jessica 8285
    Member
    @jessica-8285
    Join Date: 2007
    Post Count: 6
    ruk wrote:
    are you charging for this advise.

    Yes i will be now. I looked into this a little further over the weekend regarding my PS 146 & was informed as long as im not giving advise for a product i am selling or anything along those lines then i am safe. Plus i will not be telling people how to save & thats that, i tell them my thoughts & its up to them wether it suits them or not.

    Regarding their financial info i make sure i cover myself by refusing to view a bank statement/ CC statement as i do not want to see their private details…

    Jess :)

Viewing 5 posts - 1 through 5 (of 5 total)

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