Australian Financial Services Licensing (AFSL) Forum

Home Forums Australian Financial Services Licensing (AFSL) Forum Is an AFSL required to set-up, promote and manage Property Syndicates for private investors? Re: Is an AFSL required to set-up, promote and manage Property Syndicates for private investors?

#3090 Reply
Hi Darren,
Thanks for your comment.
What you are describing is a “managed investment scheme” (MIS), as defined by s 9 of the Corporations Act 2001.
Broadly speaking, an MIS is a financial product. If this is the case you will probably need an Australian Financial Services Licence (AFSL) to manage and operate the MIS in the manner you describe.
Some regulatory relief may be available for you, but the relief is highly conditional in nature.  You should obtain legal advice in relation to what these conditions are and whether they apply to you.
Whether or not the regulatory relief applies, there are some important legal considerations.  For example, you will want to have a suitable trust deed/constitution/Syndicate Agreement.  You will also want to make suitable disclosure to potential investors in the syndicate.
It appears that you have given some thought in relation to this proposal.  The next step is to speak to a lawyer that can help you canvas these issues, and any others that may flow from your proposal. You are welcome to call Holley Nethercote on +613 9670 2800 to discuss, or contact us at law@hnlaw.com.au.
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