AustraliaI invested in a property fund that was marketed with misleading returns. What can I do?
You may be entitled to compensation or rescission of your investment if the property fund’s marketing contained misleading or deceptive conduct under the Australian Consumer Law.
What the Law Says
Australian law strictly prohibits misleading or deceptive conduct in financial product marketing, including property funds.
The Australian Consumer Law (ACL), which forms part of the Competition and Consumer Act 2010 (Cth), makes it illegal for businesses to engage in conduct that is misleading or deceptive — or likely to mislead or deceive — in trade or commerce. This applies to how property funds are promoted to investors.
Property funds must also comply with the Corporations Act 2001 (Cth), which requires that all information in product disclosure statements (PDS) and marketing materials be accurate, not misleading, and based on reasonable grounds — especially forecasts of returns.
ASIC Regulatory Guide 7.9.12 reinforces this by requiring responsible entities of managed investment schemes to ensure forecasts in PDSs are prepared using reasonable assumptions and clearly state their basis and limitations.
Statutory TextA person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.
— Competition and Consumer Act 2010 (Cth), Sch 2, s. 18 — Australian Consumer Law
Statutory TextThe information in a PDS must not be misleading or deceptive, and any statement about future matters must be based on reasonable grounds.
— Corporations Act 2001 (Cth), s. 1013D — Content of Product Disclosure Statements
What to Do
Gather all marketing materials, PDS, emails, and recordings where returns were promised or implied.
Lodge a complaint with ASIC via asic.gov.au/complain or call 1300 300 630.
Contact the fund’s responsible entity in writing to request correction, compensation, or rescission.
If unresolved, consider applying to the Australian Financial Complaints Authority (AFCA) — free for investors.
For larger claims or complex cases, consult a lawyer experienced in financial services law before the 6-year limitation period expires.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.