Key Takeaways
- • Australia's corporate regulator, ASIC, temporarily banned three more private credit products from being offered to investors, according to Bloomberg.
- • ASIC issued a stop order on the product disclosure statement from Australian Secure Capital Fund Limited, preventing it from offering units in three registered managed investment offerings.
- • The three affected offerings held A$251.8 million (about $175 million) in assets under management as of June 30, and invest in short-term mortgages secured over Australian property.
- • The action is part of a broader ASIC drive to address risks in Australia's unlisted markets.
Summary
Australia's corporate regulator, the Australian Securities and Investments Commission (ASIC), has temporarily banned three additional private credit products from being offered to investors, according to Bloomberg. The regulator said on Thursday that it had issued a stop order on the product disclosure statement from Australian Secure Capital Fund Limited.
The order prevents the firm from offering units in three registered managed investment offerings. These vehicles place investor money into short-term mortgages secured over Australian property. As of June 30, the funds had A$251.8 million ($175 million) in assets under management.
The action is the latest in a broader regulatory drive by ASIC to address risks in unlisted markets, where private credit has grown rapidly. For institutional allocators and managers active in Australian private credit and real estate debt, the move signals continued regulatory scrutiny of retail-accessible mortgage-backed credit products and the disclosure standards applied to them.
The order prevents the firm from offering units in three registered managed investment offerings. These vehicles place investor money into short-term mortgages secured over Australian property. As of June 30, the funds had A$251.8 million ($175 million) in assets under management.
The action is the latest in a broader regulatory drive by ASIC to address risks in unlisted markets, where private credit has grown rapidly. For institutional allocators and managers active in Australian private credit and real estate debt, the move signals continued regulatory scrutiny of retail-accessible mortgage-backed credit products and the disclosure standards applied to them.
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