Feds fail investors by not regulating seminar spruikers

26/8/04
If the Howard Government was serious about protecting investors, the Australian Securities and Investment Commission (ASIC) would have more powers to deal with spruikers promoting dodgy 'get rich quick' schemes.
That was the reaction from Consumer and Employment Protection Minister John Kobelke to an attack on the States by Ross Cameron, Parliamentary Secretary to the Federal Treasurer.
"The activities of the property investment rip-off merchants are carried out nationally and there is only so much a single State can do to protect potential investors," Mr Kobelke said.
"Western Australia's consumer watchdog (the Department of Consumer and Employment Protection - DOCEP) has been very proactive in exposing suspect schemes that are promoted here, but the Federal Government needs to do more."
The Minister said ASIC already regulated other areas of financial advice and it should be overseeing property investment advice as well.
"In WA, DOCEP has used prominent newspaper advertisements and media warnings to alert potential investors and has run its own well-attended seminars to give consumers reliable information, plus good advice to help them identify dodgy schemes," he said.
"The department is on constant watch for suspect seminars but when the operators are promoting themselves nation-wide there needs to be a Federal body to take action."
Mr Kobelke said Federal Opposition leader Mark Latham was committed to regulating property investment advice through ASIC, and the Reserve Bank Governor Ian MacFarlane has also agreed there needs to be stronger Commonwealth powers in this area.
"It is time the Howard Government realised it is failing to provide sufficient protection for investors, who could get ripped-off by fast talking rogues offering questionable real estate related investment schemes," the Minister said.

Minister's office: 9222 9211