AustraliaMy property investment scheme is not registered with ASIC. Is this legal?
No, it is generally illegal for a property investment scheme in Australia to operate without ASIC registration if it meets the definition of a managed investment scheme.
What the Law Says
Under Australian law, most property investment schemes that pool investor money and are managed by a responsible entity are classified as managed investment schemes (MIS) and must be registered with ASIC.
A scheme is a managed investment scheme if it satisfies three elements: (1) people contribute money or assets to acquire rights to benefits produced by the scheme; (2) contributions are pooled or used in a common enterprise; and (3) contributors do not have day-to-day control over the scheme's operation.
If a property investment scheme meets this definition, it must be registered with ASIC before it can be offered to investors. Operating an unregistered MIS is illegal unless an exemption applies.
The Corporations Act sets strict penalties for offering or operating an unregistered MIS, including civil penalties and criminal liability.
Statutory TextA managed investment scheme must not be registered unless the responsible entity has applied for registration in accordance with this Division.
— Corporations Act 2001 (Cth), s. 601ED — Registration of managed investment schemes
Statutory TextA person must not carry on a business of operating a managed investment scheme unless the scheme is registered.
— Corporations Act 2001 (Cth), s. 601ED(1) — Registration of managed investment schemes
Statutory TextA person must not offer interests in a managed investment scheme unless the scheme is registered.
— Corporations Act 2001 (Cth), s. 601ED(2) — Registration of managed investment schemes
What to Do
Determine whether your scheme meets the legal definition of a managed investment scheme under s. 9 of the Corporations Act.
If it does, immediately stop offering or accepting new investments until ASIC registration is granted.
Engage a qualified legal adviser to prepare and lodge a registration application with ASIC under s. 601ED.
Disclose all material information to existing investors about the registration status and next steps.
Review whether any exemptions (e.g., small-scale offerings under s. 708) may apply — but note these are narrow and rarely cover property MIS.
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.