Can inexperienced people, or those with dubious credentials, become property trust managers?
For an organisation to manage property trusts and syndicates, it must meet a number of criteria, most of which are assessed by the Australian Securities and Investments Commission (ASIC). A few examples are set out below: • The organisation must be a public company and licensed as a “responsible entity” by the Australian Securities and Investment Commission. • Professional indemnity insurance must be maintained to cover losses due to negligence or fraud up to $5 million. • ASIC must be satisfied with the educational qualifications and experience of the organisation’s and experience of the organisation’s key people in the disciplines of property, finance and management. • The organisation must be capitalised to a minimum level set by the Corporations Law and ASIC. • Business and compliance systems must be tailored to deliver investors a result, protect their interests and maintain integrity. As with any industry, there are no guarantees against failure. However, the barriers to entry, t
