IN SUMMARY:
ASIC’s enforcement priorities for 2025 include a focus on property investment schemes and highlight the regulator’s continuing appetite to litigate.
Towards the end of each year, ASIC publishes its enforcement priorities for the next year, giving a useful insight into where the regulator intends to focus its attention and resources.
In its announcement, ASIC also usually includes some brief observations which look into the rear-view mirror, revisiting what its priorities were for the year just gone.
ASIC has just released its enforcement priorities for 2025. They continue a theme of consumer credit protections, but also call-out property investment schemes and conduct which exploits superannuation savings.
INCREASE IN INVESTIGATIONS AND COURT ACTIONS
ASIC says that last year, it increased its new investigations by 25% on the previous year and increased new civil proceedings by 23%. ASIC also says that it now has more matters before criminal Courts around the country than it does before civil Courts.
This is telling, because it highlights the regulator’s increased focus on taking enforcement action through the Courts, following criticism from some corners in the past that it was maybe “too soft” when it came to pursuing alleged wrongdoers.
WHAT’S AHEAD IN 2025?
In relation to its priorities for 2025, ASIC says that its “2025 enforcement priorities reflect the increased risks consumers are facing that are being driven by cost of living pressures. These priorities are about protecting Australians from financial harm and targeting the people who try to take advantage of them”. In addition to a focus on business models designed to avoid consumer credit protections, as well as retaining enduring priorities such as “Misconduct involving a high risk of significant consumer harm”, ASIC has called-out “unscrupulous” property investment schemes.
SETTING UP A PROPERTY INVESTMENT FUND OR “SYNDICATE”? YOU NEED A LICENCE.
We have written before about how an AFSL is a legal requirement for virtually every person that raises money, as well as previously outlining a case study of a property developer who was told he didn’t need an AFSL to raise money for his developments. We have also detailed the criminal conviction of a man who promoted an investment without an AFSL.
It is very likely that ASIC will look for property investment schemes being promoted or operated without the involvement of a qualified, suitably authorised AFSL holder.
There are severe penalties – including imprisonment for up to five years – for people who do not comply with the rules, and that includes both the party raising the money and those who assist them.
MARQ Trustees can assist you and your clients in navigating the regulations, ensuring the establishment of a compliant investment vehicle for raising funds to invest in property. As we always say – complying with AFSL regulations not only ensures legal compliance, but helps build trust and credibility in any fundraising and investment endeavours, benefiting you and your investors in the long-term.
