PIPA to suspend Property Secrets’ membership

In light of the recent allegations made by Today Tonight against Property Investment Professionals of Australia (PIPA) member Property Secrets, and its director, Paul Giezekamp, PIPA have said that they will take action.

Speaking to Property Observer, Margaret Lomas, former chair and current director of PIPA, said that they require that their members abide by a strict code of practice and that action would be taken against those who breach this code.

“This code includes a requirement to disclose all commissions to the client, to allow the client to make an informed decision about whether they wish to proceed with that member’s services,” Lomas said.

“In light of the recent allegations, PIPA will follow protocol, which is to suspend membership pending an investigation into the claims made.  Where evidence subsequently exists to uphold those claims, Property Secret’s membership will be terminated,” she said.

Pointing to the absence of regulation to protect consumers in the property industry, she said that part of the function of PIPA is to protect consumers in the property investment industry and to uphold standards and accreditation outlined by the organisation.

“We will continue to vigorously lobby the government, as we have done for many years, to more closely examine this industry so that consumers have recourse where they have been taken advantage of by this sort of practice,” she said.

The eight page PIPA Code of Conduct can be found online.

It states clearly the expectation of full disclosure of commissions.

Under the ‘Disclosure’ section in ‘Fees and Commissions’ on page two it notes:

Members will disclose to clients, in writing, all fees and commissions which are associated with the provision of our services so they may make proper assessment of the value of that service. This includes all commissions, payments, kickbacks and soft or hard dollar rewards which may be triggered by the utilisation of any of our services.

Earlier this year, PIPA embarked on an “anti-spruiker” campaign.

Currently, Property Secrets is listed on the PIPA website as a member.

PIPA previously suspended Money Choice's membership in May of this year, following ASIC's banning of company director, Matt George, from engaging in credit activities for eight years.