The NRAS program was designed to provide an incentive for investors to buy new property to stimulate the building industry and improve the rental affordability in high growth areas for middle income Australian families.
The incentive to the investor is the provision of substantial tax savings over a 10 year period and there are some clear and certain tax advantage for the investors.
The properties can only be rented to tenants with certain levels of income. Most importantly, NRAS is not about social housing nor designed for very low income families. It is, as the NRAS wesite states, designed for middle income earners including key and essential service workers such as childcare workers, nurses, police officers and fire-fighters. NRAS properties can be rented, but at no more than 80% of the current market rent, to private individuals and families with annual incomes of up to $108,169 and in some limited cases even higher upper limits of $135,212. These amounts will also be indexed to the CPI.
There are a very large number of what are known as NRAS providers – not for profit organisations approved under NRAS to manage properties accepted into the NRAS program. There are over 20 operating in Queensland. The NRAS provider comes to arrangements with a developer for an approved number of properties in an approved development to be managed by the provider under NRAS.
Under the provider’s agreement with the Government, the provider is responsible to ensure that the letting of the properties comply with the prescribed NRAS rules particularly that they are let to qualified tenants at the prescribed rents. Unless there is full compliance the provider’s status and the investor’s tax incentives are in jeopardy. It is therefore critical that the provider have a degree of control over how the properties are let and managed.
Different providers require different levels of control. One uses a model where it leases all of the properties from the investors and then appoints the onsite manager as agent to sublet the properties to eligible tenants.
Other models have joint letting appointments with the onsite manager who does all the property management and receives the bulk of the income. Other models simply allow the onsite manager to take letting appointments from investors but under strict guidelines agreed to with the provider.
The obvious issues with NRAS from the perspective of an onsite manager, valuers and banks include:
• The degree of control the provider has over the investors and the properties – the provider will be in a good position to direct or influence owners as to who should manage the letting of their properties;
• The potential for the provider to itself take on in the future, as agent, the letting of the properties;
• The reduced income from the lettings as the rent is at least 20% below market rents;
• Whether the complex will be able to attract a sufficient number of qualified tenants who meet the NRAS guidelines; and
• More paperwork to be completed to ensure strict compliance with the NRAS requirements re tenant eligibility and market rents, with some providers insisting on specific software utilisation.
We have acted in a number of transactions involving NRAS properties including for various managers, one of the State’s largest developers and also for a bank funding a purchase. If the full details of the NRAS arrangements are known at the outset there are ways to deal with the above issues so that the onsite manager is protected. That might include a lower payment for the NRAS units, procuring warranties or even restraints from the provider, deferred or staggered payments for the NRAS units, procuring non-competition agreements with the provider or some combination of these or others.
Unfortunately we have also been consulted by buyers of management rights off the plan where they have only found out after signing a contract that a large number of units are part of NRAS, situations that can cause a lot of grief.
Having arranged and partaken in recents forum attended by a major developer, valuers, banks, brokers and an NRAS provider, the way forward is still not crystal clear. In particular, valuers and banks will attribute minimal if any value to letting appointments where the provider has total control of the letting appointments and who the letting agent will be. Again though there are ways of dealing with even these situations to protect the onsite manager as much as possible.
On the positive side, it is important to note that:
• NRAS units are more likely to remain in the letting pool for a longer time than other investor units as the NRAS investor (and any buyer who remains in the scheme) has the benefit of the 10 year tax incentive;
• NRAS providers generally do not want to manage the letting of the properties and (as do the NRAS investors) recognise that the onsite manager is best positioned to do that – if the onsite manager is providing a sound service there will be little reason not to continue with that;
• There has been a resale of at least one management rights business with a large component of NRAS units (albeit not the leaseback model) indicating market acceptance;
• There are a very large number of complexes with NRAS units and a growing understanding and acceptance of the concept; and
• The management rights industry is very resilient, tending to adapt to or overcome potential threats and move on fairly quickly.
For a potential buyer of management rights in a complex where there are or is likely to be NRAS units, it is critical to thoroughly investigate the NRAS arrangements and take sound legal advice from a lawyer experienced in dealing with the issues involved.
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1. Financial Due Diligence; and
2. Approval of the Lease.
These conditions will be relevant whether you are purchasing the motel business, the freehold investment or both the business and the freehold.
Financial Due Diligence
The purchase contract should be conditional upon the purchaser being satisfied of the financial soundness of the business by a certain date after execution of the contract.
To enable this to occur the contract should provide for the vendor to deliver or make available to the purchaser or the purchaser's accountants copies of such financial data which may be reasonably required.
The purpose of such enquiries is to enable the purchaser to explore the financial viability of the business. Generally this will be required to be provided to the purchaser's financier in order to secure finance for the purchase.
If the purchaser is not satisfied of the financial soundness of the business, then the purchaser will be able to terminate the purchase contract by notice in writing to the vendor.
Care should be taken to ensure that the time frames in the contract within which the purchaser needs to be satisfied with the financial soundness of the business or within which the purchaser needs to terminate the contract are strictly adhered to. For this reason it is important for a prospective purchaser to liaise with their accountant early in the transaction to ensure that the time frames can be met.
Approval of the Lease
The approval of the lease is an important condition for both the purchaser of a the leasehold business and the purchaser of the freehold investment. It is essential prior to purchase of the business that the purchaser understands as much as possible about the lease document and how it works. Not only does this document affect his own activities in the motel business, but is also is an important part of the asset which is sold.
Generally the contract will require the vendor to deliver to the purchaser a true copy of the lease within a certain amount of time of the contract being entered into. The contract should be conditional upon the purchaser being satisfied with the terms and conditions of the lease by the a certain date.
If the purchaser is not satisfied of the terms of the lease, then the purchaser will be able to terminate the purchase contract by notice in writing to the vendor.
Again, care should be taken to ensure that the time frames in the contract are strictly adhered to.
The results of the analysis of the lease in terms of cost to the prospective tenant or landlord should be conveyed to the purchaser's accountant prior to the contract becoming unconditional.
These conditions are for the benefit of the purchaser and every effort should be made to use the time available to conduct thorough enquiries in relation to both the financial soundness of the business and the lease. Such information enables a purchaser to make an objective and informed decision in relation to whether or not to proceed with the proposed purchase.
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No one knows why normally rational adults are seized by these impulses, ones that invariably involve The Great Outdoors for children dread them and hide under their beds at the first mention of ``doing something together as a family’’.
They only thing they wish to do together as a family is to be left in their rooms plugged firmly into social media sites via their laptops.
Once the bonding notion has become fixed in a male’s head, however, he is not easily dissuaded for he sees himself as the head of the tribe whose role it is to fend for his brood in the wild.
The last time I was seized by this particular form of madness was when I recalled, for no reason, a caravan park where I had once stayed in northern New South Wales.
Caravan parks are a link with the past. In an era when many Australians reach for their passports at the mention of holidays, they offer a quintessentially Australian egalitarian experience.
Nowhere levels social barriers like the communal shower block in a caravan park. There, shaving elbow to elbow with complete strangers or waiting for a vacant shower cubicle, all creatures great and small are equal.
"It will be wonderful" I beamed, announcing my Great Outdoors plan one evening.
"I’ll borrow my mate’s motorhome and we’ll have a weekend by the sea. No high rise, no lifts, no breakfast buffet, just self catering and the crash of the surf."
This announcement was greeted with groans of despair. "Will there be Wifi?" they chorused. "No computers. No Ipads" I cried, triggering a mass exodus from the dining room followed by the sound of bedroom doors being slammed.
The last time I’d stayed in a caravan park had been with a mate and his girlfriend. He was new to the experience and had spent a large amount of money on a huge tent and everything that went with it.
What a shame that when after a drive of several hours we arrived at the park and went to erect his luxurious new tent, we discovered he had left the tent pegs at home.
Negotiating my friend’s motorhome down the highway was easy enough. Parking it the caravan park proved to be more interesting as it was the size of a cruise liner.
After quite a lot of shouting, yelling and contradictory directions which if followed would have seen me parked in the surf, we were plugged into the powered site and ready to set up camp and enjoy the Great Outdoors.
The roof that which extended from the side of the motorhome like a bat’s wing proved to be a challenge and I never did get it right secured properly.
Fortunately, there was no wind. Had there been I had the uncomfortable feeling that the motorhome would have gone sailing through the sky and come to rest somewhere west of Alice Springs.
All, however, had gone reasonably well and quietly pleased with myself, I decided to set up a folding table and chairs, the better to relax beneath the bat wing.
I was ahead on points and had almost wrestled the table into submission when it struck back, snapping shut and trapping my hand.
This hurt quite a bit and sent me flapping around the van site, table still attached to my hand, bellowing in agony.
My partner eventually caught me, crash tackled me to the ground and using her feet, forced open the jaws of the table which had a bite like a saltwater crocodile.
She found a supply of Band Aids and the bleeding staunched, I abandoned the motorhome and announced we were all going to the nearby pub for dinner.
The next morning, the caravan gods smiled upon us. We cooked breakfast without setting fire to anything and with the sun shining from a cloudless sky, walked the 100m to the beach.
The kids spent the day swimming and doing kids’ things that did not involve crouching over a keyboard in a darkened bedroom while we sprawled in our director’s chairs and soaked up the warmth.
At day’s end we braved the communal showers and aglow with that wonderful post-shower feel of freshness that comes after a day at the beach, had drinks beneath the bat wing as the sun cast its last shadows over the park.
"I love five star resorts, " said my partner, "but you might be on to something here. When the kids leave home we should do more of this."
"Jordan", I said turning to my partner’s first born. "When are you thinking of leaving home?"
"Never" he replied. Ah well. It was a nice thought.
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Thank you for all the positive feedback on last issue’s cover story about family business.
The Senate Committee has since tabled a weighty report, ‘Family Businesses in Australia – different and significant: why they shouldn’t be overlooked’. The main recommendation (one of 21) is to set up a new federal committee to identify policy issues for attention.
Really, it just highlights how much more needs to be done. If you want to read the detail, you’ll find a copy of the report at www.fambiz.org.au.
Meanwhile, my daughter Trudy (Resort Brokers Sales Manager) and I have been to the HICAP (Hotel Investment Conference Asia Pacific) Update in Singapore. It’s always a real ‘who’s who’ of our region’s hotel industry.
We came away with a very positive impression. Relative to room rates and occupancies across Asia, Australia is holding up very well.
It’s also great to catch up with what’s happening around the traps. Myanmar is enjoying a real tourism surge, thanks to big reforms underway there. Thailand’s Phuket remains a hotspot, and Bali is still flying.
Almost 2.95 million foreign tourists visited Bali last year, up 4.3% on the year before. Aussies, still in love with this enchanting island, make up more than a quarter of that number.
You’ll notice our centre spread showcases some affordable villas in Bali. I know the developers well. Investors in their last project, an adjacent courtyard hotel, are now reaping a net return of over 20%. Not bad for your own piece of paradise!
Closer to home, many eyes are looking closely at investment opportunities in Australia. This month, our new series on hotel groups steps inside Swiss-Belhotel International. Big in Asia and the Middle East, this fast-growing group wants to expand its presence here. Chairman Gavin Faull explains why.
There are certainly some great opportunities now across the whole accommodation spectrum in Australia – hotels, motels, holiday parks, and management rights. Inside, you’ll read my views on the need for more motels.
The caravan park sector is the focus of our cover story, and features strongly in our popular series on the many faces of tourism and accommodation, which this month introduces you to Allan Walls, who’s been a leader in both park broking and operations.
Resort Brokers has become increasingly involved in the caravan park market, and has been very active of late. In fact, in the last 6 months we have sold 7 caravan parks and, as you’ll see in these pages, more quality properties are currently listed.
Finally, I wanted to mention off-the-plan management rights, which are again becoming a big part of our business. New developments, like Sea Pearl at Mooloolaba, Oshen in Yeppoon and Arena, just down the road from us here at South Brisbane, head our list of terrific off-the-plan opportunities. And more are in the pipeline.
I think canny buyers should now be taking another good look at the Gold Coast. Despite a disappointing Easter due to some rough weather, it will always boast 30 kilometres of the world’s best white sandy beaches. Demand for Brisbane management rights has been high, so maybe it’s time to head down the highway!
Good reading! There’s something for everyone in this issue.
Please send your feedback to:
email@example.com or PO Box 5004, West End Q 4101.
There aren’t many of us who don’t have heartwarming memories of holidays spent in a caravan park. So what made those holidays so special? Australians may have recently been venturing overseas more than ever before. But they are also returning to the simple pleasures … family, friends and good-time holidays in our own beautiful backyard.
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There’s something special about a caravan park holiday, something hard to put your finger on. It’s a magical appeal no other accommodation type seems to hold. Selling this ‘X factor’ is the key to a promising future for an industry with its roots in the past.
It’s almost two years now since Informer first covered Australia’s enduring love affair with caravan parks. (‘Accommodation on the Move’, July 2011).
“Once regarded as a bit old-fashioned, caravanning is enjoying a resurgence,” we reported. In fact, we went so far as to assert that, more than just shaking off its former conservative image, the caravan park holiday was becoming the epitome of cool.
So what is the ‘X factor’ inspiring so many people to return to a style of accommodation that was really in its prime in the 1960s and 70s?
It’s not just about a great location, although no one would deny most parks have that in spades. Nor is it purely about the laid-back accommodation style, or great facilities. Even the sum of all these elements still doesn’t quite seem to explain the allure.
Actually, we think the secret ingredient is fellow holidaymakers.
What makes a caravan park holiday truly memorable is the social experience, camaraderie with other guests, immersing yourself for a little while in a community whose single-minded purpose is to relax and have fun.
“When you arrive at a hotel or motel, you don’t knock on the doors of other guests to say g’day, do you?” says Resort Brokers Australia managing director Ian Crooks. “You either go out to have fun, or you are contained within your four walls.
“But when you drive into a caravan park and pull out your deck chair, your neighbours wave hello, offer you a drink, want a chat. It’s just a great atmosphere, a sociable experience no other accommodation environment can match. Lifelong friendships are made in caravan parks.”
Business analysts at IBISWorld estimate Australia’s caravan parks and camping grounds industry generated revenue of $1.31 billion in 2011-12, up 1.1% for the year. It contributed to an estimated average annual growth rate of 1.3% for the five years to 2011-12.
Australian Bureau of Statistics (ABS) data (Caravan or Camping in Australia Snapshot 2012) tells us there were 1,638 caravan parks (with 40 or more powered sites) nationwide as at mid 2010. All up, the figure is somewhere over 2,300.
ABS figures also show around 90% of all caravan and camping visitor nights were spent outside capital cities, highlighting just how important this sector is to regional Australia.
Significantly, our caravan and campervan fleet is continuing to grow strongly. RVM Australia, the peak body for our RV manufacturing industry, says total production of caravans and RVs has been running at over 20,000 vehicles per annum for three years.
“This is the third massive year in a row – 29% above the level reached in 2009 – and early signs for 2013 suggest we can expect another boom year,” said RVM Australia CEO David Duncan.
“Clearly, people want relaxing, economical and sociable holidays that RVs make possible, with these boom years achieving more than four times the output we had in the mid-1990s.”
There’s that word again – ‘sociable’.
IBISWorld contends caravan parks and campgrounds have risen to the modern-day tourism challenge, reinventing themselves to become a more important component of total tourist accommodation in Australia.
“This includes improving facilities for families and other specific tourist groups with a particular focus on cabin and on-site van segments,” their May 2012 Market Research Report stated.
“New quality facilities are usually available at lower tariffs than competing hotels and motels, but still offer attractive profit margins.
“The caravan parks and camping grounds industry survived the economic slowdown in better shape than other tourist accommodation providers by offering a combination of low-cost and high-quality accommodation.”
Park owner and Big4 Holiday Parks director, Allan Walls, says the dramatic evolution of parks into comprehensive holiday and resort destinations has been critical.
“The range of activities provided within the property allows families to holiday in complete relaxation and security for as long as they want,” he said.
“A family of three generations will meet up at a holiday park at Christmas. Everything they need is right there for children, young adults and older family members. They can simply relax and enjoy each other’s company knowing everyone is catered for, the children have lots to do in a safe environment, and they don’t have to keep packing up and moving on.”
He raises an interesting point – that of inter-generational appeal. Younger age groups are now discovering a style of holiday already loved by their parents and grandparents. Any notion that a caravan park holiday was for fuddy duddies is well and truly debunked.
According to the ABS Snapshot, exactly half of the 8.5 million domestic caravan and camping visitors in Australia in 2011 were aged 30 – 54 years, while around one quarter were active seniors aged 55 to 70 years.
This latter sector grew rapidly in 2011, with visitors increasing by 12% to 2.6 million. Compared to 2000 estimates, trips by active caravan and camping seniors were up by 90%, while nights were up 23% and expenditure was 77% higher.
Here comes the huge baby boomer brigade, an unstoppable and hugely valuable population segment which, like families, will be vital to the caravan park industry.
Already, caravan parks have instant appeal to this cohort. Studies show baby boomers want adventure, experiences and the opportunity ‘to get to know Australia’. They are hitting the road, staying in caravan parks.
Research also shows the key to attracting boomers is to appeal to their ‘forever young’ mindset. What better way to remain young than to revisit the holiday experiences you enjoyed so much in your youth?
Some forecasts suggest the number of RV travellers will increase by more than 60% over the next 10 to 15 years.
Of course, that’s not to say there are not challenges to be met. The high Australian dollar and availability of cheap international airfares are difficulties faced by our entire accommodation industry.
But there is also an increasingly evident shift toward holidaying at home, and a yearning expressed by many for simple, stress-free pleasures. These are trends that should be encouraged, and needs that can and must be met by the industry.
The caravan park sector is expected to change shape considerably. The number of establishments will continue to decrease as some sites are converted to higher and better return uses.
Larger operators such as Discovery Holiday Parks (formerly Beston) and Aspen Parks have bought up many operations, while other park owners are supported by major member organisations such as Big4 Holiday Parks of Australia, Top Tourist Parks of Australia and Family Parks Australia.
These companies and organisations clearly see growth potential in the industry. But success for all operators will require strong business plans and management practices.
This means implementing highly effective marketing strategies, promotional partnerships with other tourism operators and attractions, customer relationship management, effective performance monitoring systems, and up-to-the-minute online booking facilities.
A great deal of helpful information and resources are available through peak industry bodies and at major industry conferences and events.
Just last month, an industry partnership was formed between the Accommodation Association of Australia (AAA) and the Caravan, RV Accommodation Industry of Australia (CRVA), giving CRVA members an enhanced industry voice and access to a range of services, including workplace relations support.
For every business, the key to success is knowing your USP (unique selling proposition) – the attribute that most sets you apart from your competitors – and selling it effectively.
In the caravan park industry, that USP, is its ability to provide guests with a memorable shared social experience.
Allan Walls summed it up: “We, as an industry, face challenges from many other accommodation providers in Australia. But they are never able to provide the friendships that our industry provides.”
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I now see a very strong case for accommodation investment. Motel development has stagnated for too long. Australia needs at least 100 new motels, of 30 to 40 rooms each, in key locations now. But the investment must be well-targeted.
According to the latest figures released by the Australian Bureau of Statistics (ABS), the national occupancy rate for hotels, motels and serviced apartments (15 or more rooms) rose to 65.8% in 2012, up from 65.3% in 2011.
For someone who has been in the industry for as long as I have, these are impressive figures. For the 20 or so years up to the mid-2000s, the traditional average occupancy rate hovered around 57 – 59%.
The industry’s other key performance indicator, revenue per available room (RevPAR), has also climbed. ABS data shows it rose from $103.83 in 2011 to $107.99 in 2012.
Anecdotally, I can tell you average room rates in most areas have increased by about $25 net of GST in the past four years, driven by the accommodation shortage.
National figures show a steady and encouraging upward trend. But we need to drill deeper, looking at the detailed regional results to identify where the opportunities lie.
Australia’s accommodation industry is a patchwork landscape with its cities and regions subject to diverse economic factors and influences.
Queensland, Western Australia and the Northern Territory recorded the greatest trading improvements from 2011 to 2012, again reminding us of the importance to our industry of business generated by the resources and energy sectors.
In Queensland, for example, while the average daily rate (ADR) statewide has risen by almost 12% over the last five years, the regional results vary wildly.
According to figures provided to the Informer (March 2013) by M3 Properties, the 5-year change in ADR swung dramatically from a rise of 41.5% in the resource boom-affected Central Queensland region to a fall of 9.4% in tropical North Queensland, where they’ve had to contend with the double whammy of the GFC-driven tourism downturn and natural disasters.
In the regions impacted by mining and energy industry fluctuations, the supply issue is complex. In times of peak construction activity, for example, local motels are never enough, and mining camps are established to meet peak accommodation needs.
The motels are still busy catering for executive and regular business and holiday guest demand.
But when the mine construction activity scales back, the camps pack up and leave. Remaining operations personnel, however, still need accommodation and they turn to the motels. There are never enough.
So why is it that these prime opportunities have largely gone begging? Why have developers been slow to fill the supply gap?
One of the biggest hurdles is often State and local authority red tape, involving lengthy development approval processes and associated costs.
That’s why I’m so impressed with new modular and pre-built motel delivery options featured recently in the Informer. The time and cost savings offered by both the R.I. Kenco Spa Modular Building Systems design and Podfirst’s motel units present innovative, viable solutions to our motel supply needs.
R.I. Kenco’s Italian-designed and pre-fabricated Modus units arrive flat-packed. With a build time of just eight weeks from start to finish, you have a new motel in place for around $50,000 - $60,000 per room.
In the case of Podfirst, the architecturally designed, pre-built masonry motel rooms are delivered as connection-ready pods, from $42,000. They have reinforced, concrete-filled wall panels over a concrete slab floor, with sub-floor services, all ready to plug in.
Forecaster Deloitte Access Economics anticipates room occupancy rates in Australia are going to further increase from 65% to 68% by 2014.
While international visitor numbers are rising, more and more Australians are choosing to holiday at home. And our own population includes a large bubble of baby boomers who’ll be spending more and more time in pursuit of leisure.
Tourism Australia, in 2009, announced we needed to deliver 40,000 more accommodation rooms by 2020. But according to their State of the Industry 2012 report, there’s only been a net increase of around 730 nationally since then. That’s a huge shortfall.
I can honestly say, the long-term outlook for motels is stronger now than any time in the almost three decades I have been in this industry. Opportunity is knocking.
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Representatives of the Office of Fair Trading (OFT) are a necessary evil. They are needed to keep the various industries they regulate clean and tidy. Bad apples ruin it for everyone, so when they come knocking, don’t be afraid, just be ready.
For the last few months we have been contacted by more and more clients about spot visits conducted by the OFT. They usually are looking for what they call the ‘big four’:
1. Your licence on ‘conspicuous’ display (above the front door is the traditional spot – but it can be elsewhere. It just must be visible when people enter your premises);
2. Your licensee name and category printed in font 1.5cm high on display;
3. A statement that you are subject to a Code of Conduct (click here for the Code) and the fact that is available; and
4. A simple and easy to use complaints resolution policy in place (but not necessarily on show). If you need one of these let us know.
Leaving aside those simple ones, the OFT has a mandate to make sure that you are conducting your letting business in accordance with law. Some of the more common issues that we see arise in an audit are:
The right entity – All PAMDA20A’s must be in your name or the prior ones must be legally assigned to you. Yes, we bang on endlessly about that, but it is important – you cannot let a lot (or charge a commission) without a written agreement from the owner of the lot;
• The right charges - Make sure that everything you are charging is listed in your PAMDA20A. If not, you need another written authority to raise those charges (like a separate written agreement);
• Licence conditions - Make sure you are adhering to any conditions of your licence (i.e. for a resident letting licence – that you are actually residing on site);
• Staff licencing - If necessary, make your staff also licenced as required; and
• Audits – Make sure you have had all your statutory audits.
Remember that the OFT only regulates letting. They have nothing to do with caretaking. You won’t ever get them chipping you about not maintaining the lawns or hosing the driveway.
If you do get a visit, some simple rules for dealing with the OFT are:
1. If they do drop in for a spot check, answer their questions honestly. Having said that, don’t be afraid to tell them you need to seek legal advice (especially if you are not sure about your position).
2. It follows that you should never, ever lie to them.
3. They can require you to (within a reasonable period):
• Produce documents about your letting activities (ie. PAMDA 20A’s, copy of your licence, trust account documents); and
• give information about an offence if they believe on reasonable grounds that an offence has occurred.
A failure to provide information as required is an offence that could lead to a fine or, at worst, imprisonment.
4. You are entitled to seek legal advice to assess your position, but you should do that immediately. Do not get caught thinking as that makes you look guilty – it is a right you are entitled to, and our experience is that it is far better to give a considered response than a haphazard guess.
5. If you do get formal correspondence from the OFT, then seek immediate legal advice. Sometimes the issues can be resolved quickly and painlessly but sometimes you might need to prepare for a fight.
6. Do not ignore their follow up correspondence or emails. They are not like a salesperson – who might get discouraged by someone failing to come back to them. They simply won’t let go – and ignoring them is a sure-fire way to stay on their radar.
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