Key Takeaways
- • ASIC's second major review of Australia's private credit sector found that opaque structures and disclosure shortcomings persist, with fee disclosure, product distribution, conflicts-of-interest management and transparency issues flagged in its November 2025 first report still unresolved.
- • The regulator reviewed 24 wholesale and retail private credit funds with combined assets under management of $18 billion between November 2025 and August 2026, and sampled financial advice given to retail investors in these products.
- • ASIC Commissioner Simone Constant said many investors still do not receive the information needed to understand risks, fees and conflicts of interest.
- • ASIC has issued six interim stop orders and made several referrals for possible enforcement, including interim orders against Angas Securities Limited over disclosure documents for two managed investment schemes.
- • AIMA and the Alternative Credit Council released guidance for Australian private credit managers covering governance, lending standards, transparency and investor protection.
Summary
The Australian Securities and Investments Commission (ASIC) said the country's private credit sector, valued at $250 billion according to ABC News, continues to feature opaque structures and shortcomings in investor disclosures. The findings come from the regulator's second major review of the segment, which covers lending outside the banking sector.
Between November 2025 and August 2026, ASIC reviewed 24 wholesale and retail private credit funds with combined assets under management of $18 billion. The regulator also analysed a sample of financial advice provided to retail investors regarding these investments. According to ASIC, the issues it highlighted in its first report in November 2025, including fee disclosures, product distribution, conflicts-of-interest management and transparency, remain present. ASIC Commissioner Simone Constant said many investors still do not receive the information they need to understand risks, fees and conflicts of interest.
ASIC said it has already taken several regulatory actions, including six interim stop orders and a number of referrals for further investigation into possible enforcement. This week, the regulator issued interim orders prohibiting Angas Securities Limited from offering interests in two managed investment schemes. The concern was that the disclosure documents did not contain sufficient information about the company's financial position and one fund's exposure to Bathla Group.
Separately, the Alternative Investment Management Association (AIMA) and the Alternative Credit Council released guidance for Australian private credit managers. The document sets out recommended practices to strengthen corporate governance, lending standards, transparency and investor protection.
Between November 2025 and August 2026, ASIC reviewed 24 wholesale and retail private credit funds with combined assets under management of $18 billion. The regulator also analysed a sample of financial advice provided to retail investors regarding these investments. According to ASIC, the issues it highlighted in its first report in November 2025, including fee disclosures, product distribution, conflicts-of-interest management and transparency, remain present. ASIC Commissioner Simone Constant said many investors still do not receive the information they need to understand risks, fees and conflicts of interest.
ASIC said it has already taken several regulatory actions, including six interim stop orders and a number of referrals for further investigation into possible enforcement. This week, the regulator issued interim orders prohibiting Angas Securities Limited from offering interests in two managed investment schemes. The concern was that the disclosure documents did not contain sufficient information about the company's financial position and one fund's exposure to Bathla Group.
Separately, the Alternative Investment Management Association (AIMA) and the Alternative Credit Council released guidance for Australian private credit managers. The document sets out recommended practices to strengthen corporate governance, lending standards, transparency and investor protection.
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