Media Release: Thursday 19th February 2026

PICA Warns Buyers Agents, Mortgage Brokers, and Accounting Professionals on Unlicensed Financial Advice Risks from Investment Modelling Software Tools

The Property Investors Council of Australia (PICA) has issued a warning to professionals across the real estate, property advisory, mortgage broking, and
accounting sectors regarding the increasing misuse of property investment software and modelling tools, cautioning that their use may constitute the provision of
unlicensed financial advice.

PICA says it is increasingly concerned that software tools and apps modelling property and portfolio performance of trusts, companies or self-managed superannuation (SMSFs) property assets are promoted to and used by these professionals. These same professionals who do not hold an Australian Financial Services Licence (AFSL) or appropriate authorisation—placing both practitioners, their business, and consumers at significant legal risk.

“Many professionals may be unaware that using these software modelling tools and apps in relation to property owned by clients in trusts, companies or SMSF’s means they are giving financial product advice, under the Corporations Act, which is against the law” said Ben Kingsley, Chair of PICA.

“Unless you are a financial planner, using any tools that analyse or track the current or future performance of property in these entities for a client, crosses a clear legal boundary, even where the intent is education or illustration.”

Why This Matters:
Under the Corporations Act 2001, interests in trusts, companies and SMSFs are classified as financial products. Any advice—whether personal or general—about acquiring property or helping a client manage a portfolio through these structures is therefore regulated financial advice.

PICA notes that:

• Software tools do not remove liability – facilitating advice through modelling platforms is treated the same as giving advice directly.
• “Soft” or implied recommendations can still be financial advice if they influence decision-making – being the client with whom they are working.
• Even ‘General Advice’ is still regulated advice and requires appropriate licensing when provided during an ‘advisor’ talking about financial products, which includes Trusts, Companies, where borrowings are involved and SMSF’s irrespective of borrowings.

By contrast, modelling a property purchase in an individual’s own name, using these tools, does not fall within the same regulatory scope and had been an accepted
practise in the property investment for decades.

 

Serious Penalties for Breaches

PICA highlights that under Section 911A of the Corporations Act, carrying on a financial services business without a licence can attract severe penalties:

• Individuals:
  • Up to 5 years’ imprisonment, and/or
  • Civil penalties of up to $1.565 million per contravention
• Corporations:
  • Civil penalties of up to $15.65 million per contravention

Recent regulatory action and communication from ASIC shows they are increasingly adopting a “gatekeeper” approach, examining not only end advisers, but also:

• Software platform providers
• Marketers and lead generators
• Referrers
• Industry participants who enable or facilitate advice pathways.

 

Marketing Claims Also Under Scrutiny by ASIC

PICA also warns that professionals promoting their personal investment results or client outcomes to attract business may breach Australia’s misleading and deceptive conduct provisions, particularly where claims imply repeatable returns, minimal risk, or guaranteed outcomes.

ASIC guidance makes clear that:

• The overall impression of marketing is assessed—not just disclaimers.
• Promoters can be responsible for testimonials and comments once they are aware of them.
• Presenting personal success stories can amount to a recommendation, triggering financial advice obligations.

This is a call for professional caution and education from PICA to the industry and industry associations and comes off the back of a warning to industry last year about the ‘animal spirits’ of some in the industry in respect to Trust, Company and SMSF lending, which resulted in a clean-up of lending practises in this space.
PICA emphasises that its warning is protective, not punitive, and is intended to help professionals operate confidently within their legal remit, whilst ensuring consumers remain protected from unscrupulous behaviours of some in the property investment space.

“As the regulatory environment evolves, professionals across property (Buyers Agents), lending (Mortgage Brokers) and accounting need clarity around where their role starts and ends and where licensed financial advice begins,” Mr Kingsley said.

“Greater awareness now will reduce legal, reputational and consumer harm in the future, and these software businesses should also refrain from promoting these tools to professionals who aren’t licensed to use them or give advice in this space.”

PICA encourages industry participants to seek appropriate legal and licensing advice, and to ensure that any tools, platforms, or marketing approaches used align with the Corporations Act and ASIC regulatory guidance.