Investors cautioned over art investment
Expert advice needed
By Kate Kachor
Fri 20 Jan 2012
Investors considering purchasing artwork through their superannuation funds should consult an expert before making an investment decision, industry superannuation executives said.
"There is no doubt that people have a specific interest and specific expertise [in art investment] and they do get some good returns but you've got to be able to do your due diligence on the product and on the provider," Association of Superannuation Funds of Australia chief executive Pauline Vamos said.
"There is always a risk in dealing with third parties. You've got to make sure they are legitimate, you've got to get verification but you've got to make sure they are ethical as well."
Self-Managed Super Funds Professionals' Association of Australia (SPAA) chief executive Andrea Slattery said investors should familiarise themselves with the investment so they can make informed decisions.
"They [investors] should get specialist advice," Slattery said.
"This is an investment [that could] provide them with an opportunity to have retirement income and therefore you must be very confident that the investments that you're making [are appropriate] and you're aware of all of the opportunities and pitfalls that might occur."
ASFA and SPAA made the comments after more than 40 investors, many believed to have used their superannuation monies to invest in artworks, were victims of more than $8 million in artwork investment fraud.
"There is no doubt that people have a specific interest and specific expertise [in art investment] and they do get some good returns but you've got to be able to do your due diligence on the product and on the provider," Association of Superannuation Funds of Australia chief executive Pauline Vamos said.
"There is always a risk in dealing with third parties. You've got to make sure they are legitimate, you've got to get verification but you've got to make sure they are ethical as well."
Self-Managed Super Funds Professionals' Association of Australia (SPAA) chief executive Andrea Slattery said investors should familiarise themselves with the investment so they can make informed decisions.
"They [investors] should get specialist advice," Slattery said.
"This is an investment [that could] provide them with an opportunity to have retirement income and therefore you must be very confident that the investments that you're making [are appropriate] and you're aware of all of the opportunities and pitfalls that might occur."
ASFA and SPAA made the comments after more than 40 investors, many believed to have used their superannuation monies to invest in artworks, were victims of more than $8 million in artwork investment fraud.
A spokesperson for the Australian Taxation Office (ATO) was unable to comment on whether any of the investors were involved in self-managed superannauation funds or Australian Prudential Regulation Authority regulated funds.
On Monday, a Sydney art dealer was arrested and charged with 77 counts of larceny and 10 counts of director cheat and defraud, a NSW police statement said.
The art dealer was arrested following investigations into artwork investment fraud by Fraud and Cybercrime Squad detectives, the statement said.
More than 400 paintings were seized by police with extensive inquiries conducted to determine the legitimate ownership of the paintings, it said.
In early 2009, NSW police formed Strike Force Glasson to investigate dealings relating to a number of art galleries in Sydney's north-west following complaints of alleged investment fraud.
On Monday, a Sydney art dealer was arrested and charged with 77 counts of larceny and 10 counts of director cheat and defraud, a NSW police statement said.
The art dealer was arrested following investigations into artwork investment fraud by Fraud and Cybercrime Squad detectives, the statement said.
More than 400 paintings were seized by police with extensive inquiries conducted to determine the legitimate ownership of the paintings, it said.
In early 2009, NSW police formed Strike Force Glasson to investigate dealings relating to a number of art galleries in Sydney's north-west following complaints of alleged investment fraud.
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