Key Takeaways
- • ASIC reviewed 24 wholesale and retail private credit funds with a combined A$18bn ($12bn) in assets under management and found structural weaknesses in how they disclose risks, fees and conflicts to clients.
- • ASIC Commissioner Simone Constant pledged that private credit investment providers will be held "accountable" for inadequate client disclosure.
- • The findings apply to both wholesale and retail private credit vehicles, indicating regulatory scrutiny extends across investor types.
Summary
The Australian Securities and Investments Commission (ASIC) has pledged to hold private credit investment providers "accountable" after a new review identified deficiencies in how they inform clients of risks, according to TheBanker.com. Commissioner Simone Constant leads the regulator's push on the issue.
ASIC said its review covered 24 wholesale and retail private credit funds with a combined A$18bn ($12bn) in assets under management. Despite the regulator's previous efforts to set out its expectations of good practice, the review found structural weaknesses that left many customers uninformed about risks, fees and conflicts of interest.
The findings place private credit disclosure practices under closer regulatory scrutiny in Australia. Because the review included both wholesale and retail funds, managers serving institutional and individual investors alike should expect heightened expectations on transparency. The source article is partially paywalled, so further detail on specific remediation requirements or enforcement steps is not available in the reviewed text.
ASIC said its review covered 24 wholesale and retail private credit funds with a combined A$18bn ($12bn) in assets under management. Despite the regulator's previous efforts to set out its expectations of good practice, the review found structural weaknesses that left many customers uninformed about risks, fees and conflicts of interest.
The findings place private credit disclosure practices under closer regulatory scrutiny in Australia. Because the review included both wholesale and retail funds, managers serving institutional and individual investors alike should expect heightened expectations on transparency. The source article is partially paywalled, so further detail on specific remediation requirements or enforcement steps is not available in the reviewed text.
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