Key Takeaways
- • ASIC reviewed 24 wholesale and retail private credit funds with combined assets under management of A$18bn (£9.2bn) between November 2025 and August 2026, and found persistent weaknesses in fee disclosure, conflict management and retail distribution.
- • ASIC has issued six interim stop orders since September 2026, with several referrals for further enforcement investigation, signaling an escalating enforcement posture.
- • Many poor practices flagged in ASIC's first private credit report in November 2025 remain in place, according to commissioner Simone Constant.
- • ASIC issued interim stop orders against two Angas Securities-run private credit funds one day before the review was published.
- • ASIC points to its ten principles of private credit done well as the benchmark for industry practice.
Summary
Australia's Australian Securities and Investments Commission (ASIC) has warned that private credit investors are not receiving the information they need to understand the risks of their investments. In its latest sector review, the regulator found complex structures and arrangements that masked conflicts and fees, incomplete or inconsistent fee disclosure, and retail distribution practices that failed to communicate risks clearly and support informed decision-making.
The review covered 24 wholesale and retail private credit funds with a combined A$18bn (£9.2bn) in assets under management, observed between November 2025 and August 2026. ASIC also examined a sample of financial advice given to retail investors on private credit.
The surveillance has already produced several regulatory interventions, including six interim stop orders and multiple referrals for further enforcement investigation. ASIC commissioner Simone Constant said the six stop orders issued since September were "clear evidence that practices have still not improved in line with this growth." Constant acknowledged "pockets of improvement" but said "complexity and opacity persist, in some cases leaving investors unable to properly assess the risks and benefits of their investments."
ASIC stated that many of the fee, disclosure, distribution and conflict management issues identified in its first private credit report, published in November 2025, remain unresolved. The regulator pointed to its guidance, including its ten principles of private credit done well, as a clear statement of good practice for the industry.
The review was released a day after ASIC issued interim stop orders against two private credit funds run by Angas Securities, which the publication describes as the latest step in the regulator's clampdown on the sector.
The review covered 24 wholesale and retail private credit funds with a combined A$18bn (£9.2bn) in assets under management, observed between November 2025 and August 2026. ASIC also examined a sample of financial advice given to retail investors on private credit.
The surveillance has already produced several regulatory interventions, including six interim stop orders and multiple referrals for further enforcement investigation. ASIC commissioner Simone Constant said the six stop orders issued since September were "clear evidence that practices have still not improved in line with this growth." Constant acknowledged "pockets of improvement" but said "complexity and opacity persist, in some cases leaving investors unable to properly assess the risks and benefits of their investments."
ASIC stated that many of the fee, disclosure, distribution and conflict management issues identified in its first private credit report, published in November 2025, remain unresolved. The regulator pointed to its guidance, including its ten principles of private credit done well, as a clear statement of good practice for the industry.
The review was released a day after ASIC issued interim stop orders against two private credit funds run by Angas Securities, which the publication describes as the latest step in the regulator's clampdown on the sector.
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