Macquarie Bank Pauses Trust and Company Lending: PICA Welcomes the Move and Calls for Broader Industry Action

Dear PICA Members,

The Property Investors Council of Australia (PICA) has welcomed Macquarie Bank’s decision to pause trust and company lending in the residential property sector — a move we view as an important step toward removing the risk of residential property becoming a tradable and speculative asset and helps protect responsible investment into residential property. 

This follows our ongoing advocacy warning about unlicensed advice and “get-rich-quick” property spruikers using social media to promote speculative property schemes. Many of these operators are encouraging everyday Australians to overextend themselves financially through aggressive credit strategies and the misuse of trust or company structures to buy multiple properties quickly.

Why PICA Has Spoken Out

Our latest media release, titled “PICA Responds to Macquarie Bank Decision highlights a growing concern — that some lenders may be unknowingly facilitating this speculative behaviour of the back of heavy social media advertising.

We’ve seen this before in other sectors. The recent collapse of investment funds like Shield and First Guardian are a timely reminder and caused enormous harm to consumers and widespread regulatory fallout. The same playbook — social media hype, false promises of fast wealth, and cookie-cutter financial strategies — is now appearing in the residential property investment space.

Our message to lenders remains clear: conduct due diligence now. Track where loan applications are coming from, identify links to spruikers, and ensure lending practices align with responsible credit and consumer protection standards.

What This Means for PICA Members

As responsible property investors, PICA members understand the value of long-term, sustainable strategies — not speculative shortcuts.
We want you to know that PICA is actively working to safeguard the reputation of genuine investors by calling out unethical practices that risk undermining confidence in the broader property sector

We’re also encouraging regulators and lenders to recognise the difference between:

• Educated, strategic investors who use structures like trusts or SMSFs appropriately; and
• Unlicensed promoters exploiting these structures to sell unrealistic dreams of fast profits.

Our advocacy ensures that your voice is represented in conversations about how lending and investment practices should evolve in Australia’s property market.

Next Steps

• PICA will continue engaging with policymakers, regulators, and lenders to ensure lending standards remain responsible and transparent.
• We’ll also monitor the market for ongoing misuse of trust and company structures in speculative lending schemes.
• Further updates and any regulatory responses will be shared with members as they develop.

How You Can Help

• Stay alert: If you come across social media promotions or “property wealth accelerators” promising quick gains via trust or company lending, report them to ASIC — as well as reporting them to us. 
• Keep informed: Read the full media release here for background and quotes from PICA Board or Chair, Ben Kingsley.
• Support PICA’s mission: The stronger our collective voice, the greater our impact in protecting ethical investors and improving industry standards.