Back to examplesDemo Scenario — Fractional Investment Platform

Fractional Real Estate Investment Platform

A platform allowing users to buy fractional shares in commercial real estate. Users invest as little as $100, receive quarterly rental income distributions, and can trade their shares on our secondary market.

Key inputs provided:

Money moves between users?Yes - secondary market trading
Who controls funds?Platform holds and pools funds
Revenue modelManagement fee (2% annually)
Promises returns?Yes - implied rental yield
Investment activity?Investing for returns
Asset handlingFractionalised and pooled

Do Not Launch Yet

Launching in its current form is likely to trigger regulatory issues.

✕ Blocked

Decision confidence

High confidence based on your inputs

Platform type:proptech
Primary risk area:Financial product - AFSL required
Key factor:Returns are implied or promoted to investors

Assumptions used in this decision

  • •Returns are implied or promoted to investors
  • •Funds are pooled across multiple properties
  • •Where you selected "unsure", we assumed the higher-risk scenario
  • •Analysis based on current Australian law (Corporations Act 2001, AML/CTF Act, Privacy Act 1988, ACL)
  • •This assessment is point-in-time only — regulations change frequently

If any of these change, your launch status may change. Re-check your clearance if your platform model shifts.

What to do next

Priority order — start at the top

1
Must fix before launch

You must obtain an Australian Financial Services Licence (AFSL) or operate under an existing AFSL holder

2
Must fix before launch

The investment structure must be registered as a Managed Investment Scheme with ASIC

3
Must fix before launch

You must appoint a Responsible Entity with its own AFSL to manage the scheme

4
Must fix before launch

AUSTRAC registration and full AML/CTF compliance program required

5
Must fix before launch

Product Disclosure Statement (PDS) must be prepared and lodged with ASIC

6
Must fix before launch

Consider whether a crowd-sourced funding intermediary licence is more appropriate

Growth Readiness

Stripe CompatibilityNot yet
Investor Red FlagsMajor

This reflects how payment providers and early investors typically view platforms like yours.

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