AustraliaA property REIT (real estate investment trust) lost my money through poor management. What's my recourse?
You may have rights under the Corporations Act 2001 (Cth) to complain to ASIC, seek compensation, or take legal action if the REIT’s responsible entity breached its duties.
What the Law Says
In Australia, property REITs are managed by a 'responsible entity' regulated under the Corporations Act 2001 (Cth). This entity owes strict statutory duties to unitholders — including acting honestly, exercising care and diligence, and acting in the best interests of the fund.
The responsible entity of a registered managed investment scheme (like a property REIT) must comply with obligations under Part 5C.4 of the Corporations Act 2001. Breach of these duties can give rise to civil liability and regulatory action.
Section 601FC requires the responsible entity to act honestly and exercise the same degree of care and diligence as a reasonable person would in managing their own affairs. It must also act in the best interests of scheme members.
Section 1041H prohibits misleading or deceptive conduct in connection with financial products — including REIT units — and applies to statements made by the responsible entity, directors, or advisers.
ASIC has enforcement powers under the Act, including the ability to issue infringement notices, accept enforceable undertakings, or commence civil penalty proceedings. Courts may order compensation for losses caused by breaches.
Statutory TextThe responsible entity must: (a) act honestly; and (b) exercise a reasonable degree of care and diligence; and (c) act in the best interests of the members of the scheme.
— Corporations Act 2001 (Cth), s. 601FC — Duties of responsible entities
Statutory TextA person must not, in relation to a financial product or a financial service, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.
— Corporations Act 2001 (Cth), s. 1041H — Misleading or deceptive conduct
What to Do
Contact the REIT’s responsible entity in writing to request an explanation and seek redress.
Lodge a formal complaint with ASIC via asic.gov.au/complain — include all relevant documents and evidence.
Consider seeking independent legal advice to assess whether you have grounds for civil action (e.g., breach of duty or misleading conduct).
If your loss exceeds $10,000 and involves multiple investors, explore joining or initiating a class action through a law firm experienced in shareholder litigation.
Check whether the REIT is covered by the Financial Ombudsman Service (FOS) — though most listed REITs are excluded, some unlisted schemes may be eligible.
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.