❓ Mr. Dean questions the Minister about the collapse of Henry Kaye's National Investment Institute, given the Minister's prior warnings. The Minister criticises the federal government's slow response to the issue and highlights the potential financial losses for investors.
AnsweredQoN 1349Legislative Assembly
QuestionView source ↗
Given the minister’s previous warnings about some of the property investment advice that is being peddled across Australia, will he advise the House on the collapse of property investment spruiker Henry Kaye’s National Investment Institute? Mr J.C. KOBELKE
AnswerView source ↗
On previous occasions I have indicated my concern about people who peddle property financial advice. The Kaye group, for example, had advertisements in the paper that read “No deposit, no money down.” Such advertisements told people that they could make a lot of money with negative gearing. These groups have always been suspect and, because they claimed to provide financial advice, we asked the Commonwealth to act. At a federal parliamentary committee, the Reserve Bank Governor Ian Macfarlane also indicated that the Commonwealth needed to act. Fairly late in the piece it has seen the need to move, but it has been a bit slow. A receiver and an administrator were appointed to the National Investment Institute on Tuesday. Kaye’s Group Corp Services Co is owed $7 million by Kaye’s National Investment Institute. Another company, Kaye Property Corporate Services, owes the National Investment Institute $28 million and a report this morning suggests that the black hole has blown out to at least $55 million with potentially little hope that mum and dad investors will recover their money. When shonky operators move into this field, Governments must respond. The last Liberal Government in Western Australia tried to sweep the finance brokers issue under the carpet. In light of that experience, I would have thought that John Howard’s Liberal federal Government would be more conscious of the potential for people to lose their investments through these shonky operators. On several occasions I took this matter up directly with the federal Government and I also took it up with the media to pressure the Commonwealth. All too late, it has taken account of the need in this area. The potential collapse of the Kaye group means that a lot of people will lose their money. If the federal Government had acted earlier, it could have done something to prevent people from being lured into schemes and losing their money. In Western Australia, of course, we will be vigilant and ensure that we have regulatory regimes to protect people. As a result of this lesson, I hope the federal Government might also move a bit more quickly to ensure it provides the regulatory protection that is necessary to stop people being robbed by these types of operators.
Mr J.C. KOBELKE replied: On previous occasions I have indicated my concern about people who peddle property financial advice. The Kaye group, for example, had advertisements in the paper that read “No deposit, no money down.” Such advertisements told people that they could make a lot of money with negative gearing. These groups have always been suspect and, because they claimed to provide financial advice, we asked the Commonwealth to act. At a federal parliamentary committee, the Reserve Bank Governor Ian Macfarlane also indicated that the Commonwealth needed to act. Fairly late in the piece it has seen the need to move, but it has been a bit slow. A receiver and an administrator were appointed to the National Investment Institute on Tuesday. Kaye’s Group Corp Services Co is owed $7 million by Kaye’s National Investment Institute. Another company, Kaye Property Corporate Services, owes the National Investment Institute $28 million and a report this morning suggests that the black hole has blown out to at least $55 million with potentially little hope that mum and dad investors will recover their money. When shonky operators move into this field, Governments must respond. The last Liberal Government in Western Australia tried to sweep the finance brokers issue under the carpet. In light of that experience, I would have thought that John Howard’s Liberal federal Government would be more conscious of the potential for people to lose their investments through these shonky operators. On several occasions I took this matter up directly with the federal Government and I also took it up with the media to pressure the Commonwealth. All too late, it has taken account of the need in this area. The potential collapse of the Kaye group means that a lot of people will lose their money. If the federal Government had acted earlier, it could have done something to prevent people from being lured into schemes and losing their money. In Western Australia, of course, we will be vigilant and ensure that we have regulatory regimes to protect people. As a result of this lesson, I hope the federal Government might also move a bit more quickly to ensure it provides the regulatory protection that is necessary to stop people being robbed by these types of operators.
On previous occasions I have indicated my concern about people who peddle property financial advice. The Kaye group, for example, had advertisements in the paper that read “No deposit, no money down.” Such advertisements told people that they could make a lot of money with negative gearing. These groups have always been suspect and, because they claimed to provide financial advice, we asked the Commonwealth to act. At a federal parliamentary committee, the Reserve Bank Governor Ian Macfarlane also indicated that the Commonwealth needed to act. Fairly late in the piece it has seen the need to move, but it has been a bit slow. A receiver and an administrator were appointed to the National Investment Institute on Tuesday. Kaye’s Group Corp Services Co is owed $7 million by Kaye’s National Investment Institute. Another company, Kaye Property Corporate Services, owes the National Investment Institute $28 million and a report this morning suggests that the black hole has blown out to at least $55 million with potentially little hope that mum and dad investors will recover their money. When shonky operators move into this field, Governments must respond. The last Liberal Government in Western Australia tried to sweep the finance brokers issue under the carpet. In light of that experience, I would have thought that John Howard’s Liberal federal Government would be more conscious of the potential for people to lose their investments through these shonky operators. On several occasions I took this matter up directly with the federal Government and I also took it up with the media to pressure the Commonwealth. All too late, it has taken account of the need in this area. The potential collapse of the Kaye group means that a lot of people will lose their money. If the federal Government had acted earlier, it could have done something to prevent people from being lured into schemes and losing their money. In Western Australia, of course, we will be vigilant and ensure that we have regulatory regimes to protect people. As a result of this lesson, I hope the federal Government might also move a bit more quickly to ensure it provides the regulatory protection that is necessary to stop people being robbed by these types of operators.
Mr J.C. KOBELKE replied: On previous occasions I have indicated my concern about people who peddle property financial advice. The Kaye group, for example, had advertisements in the paper that read “No deposit, no money down.” Such advertisements told people that they could make a lot of money with negative gearing. These groups have always been suspect and, because they claimed to provide financial advice, we asked the Commonwealth to act. At a federal parliamentary committee, the Reserve Bank Governor Ian Macfarlane also indicated that the Commonwealth needed to act. Fairly late in the piece it has seen the need to move, but it has been a bit slow. A receiver and an administrator were appointed to the National Investment Institute on Tuesday. Kaye’s Group Corp Services Co is owed $7 million by Kaye’s National Investment Institute. Another company, Kaye Property Corporate Services, owes the National Investment Institute $28 million and a report this morning suggests that the black hole has blown out to at least $55 million with potentially little hope that mum and dad investors will recover their money. When shonky operators move into this field, Governments must respond. The last Liberal Government in Western Australia tried to sweep the finance brokers issue under the carpet. In light of that experience, I would have thought that John Howard’s Liberal federal Government would be more conscious of the potential for people to lose their investments through these shonky operators. On several occasions I took this matter up directly with the federal Government and I also took it up with the media to pressure the Commonwealth. All too late, it has taken account of the need in this area. The potential collapse of the Kaye group means that a lot of people will lose their money. If the federal Government had acted earlier, it could have done something to prevent people from being lured into schemes and losing their money. In Western Australia, of course, we will be vigilant and ensure that we have regulatory regimes to protect people. As a result of this lesson, I hope the federal Government might also move a bit more quickly to ensure it provides the regulatory protection that is necessary to stop people being robbed by these types of operators.
On previous occasions I have indicated my concern about people who peddle property financial advice. The Kaye group, for example, had advertisements in the paper that read “No deposit, no money down.” Such advertisements told people that they could make a lot of money with negative gearing. These groups have always been suspect and, because they claimed to provide financial advice, we asked the Commonwealth to act. At a federal parliamentary committee, the Reserve Bank Governor Ian Macfarlane also indicated that the Commonwealth needed to act. Fairly late in the piece it has seen the need to move, but it has been a bit slow. A receiver and an administrator were appointed to the National Investment Institute on Tuesday. Kaye’s Group Corp Services Co is owed $7 million by Kaye’s National Investment Institute. Another company, Kaye Property Corporate Services, owes the National Investment Institute $28 million and a report this morning suggests that the black hole has blown out to at least $55 million with potentially little hope that mum and dad investors will recover their money. When shonky operators move into this field, Governments must respond. The last Liberal Government in Western Australia tried to sweep the finance brokers issue under the carpet. In light of that experience, I would have thought that John Howard’s Liberal federal Government would be more conscious of the potential for people to lose their investments through these shonky operators. On several occasions I took this matter up directly with the federal Government and I also took it up with the media to pressure the Commonwealth. All too late, it has taken account of the need in this area. The potential collapse of the Kaye group means that a lot of people will lose their money. If the federal Government had acted earlier, it could have done something to prevent people from being lured into schemes and losing their money. In Western Australia, of course, we will be vigilant and ensure that we have regulatory regimes to protect people. As a result of this lesson, I hope the federal Government might also move a bit more quickly to ensure it provides the regulatory protection that is necessary to stop people being robbed by these types of operators.
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