More than one in three financial advisers still do not know whether they can legally give their clients financial advice on real estate investment trusts, according to research from Reita.
The survey of over 250 financial advisers reveals 34% do not know whether they can legally give their clients financial advice on REITs, either individually or as a firm.
While 39% claim they already have permission to advise on REITs, the Association of Independent Financial Advisers (AIFA) says this is not necessarily the case because advisers have insufficient information to make this judgement.
Fay Goddard, deputy director general of AIFA, says: “We are not surprised at the results of this survey as there has been very little information from the FSA on the regulatory status of REITs and without this guidance many advisers simply will not know whether they are legally authorised to advise or not.”
The survey also reveals demand for education on REITs remains high, with 68% of advisers saying they are interested in attaining a formal qualification in property investment.
A further 63% of advisers expect to incorporate REITs into the portfolios of their investment clients in 2007, either directly (3%) or via a collective investment scheme (60%).
The UK is the most popular (36%) region for intermediaries to recommend their clients to invest in property, followed by global (29%) and Europe (20%).
AIFA has published a Viewpoint guide which gives information on REITs, including the regulatory requirements.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7034 2680 or email [email protected].IFAonline
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