Particle.news
Download on the App Store

ASIC Puts $200 Billion Private Credit on Notice With Oversight Roadmap

ASIC signals tougher action unless private credit improves compliance.

Overview

  • The regulator’s 18-month review of 28 funds found unclear disclosures, opaque fee margins, weak governance and valuation, and inconsistent default reporting.
  • ASIC will issue clearer guidance, step up surveillance and pursue enforcement, and it has asked government for data-collection powers and independent audits of wholesale funds.
  • Private credit has swelled more than 500% since 2015 to about $200 billion, powered by superannuation inflows seeking higher yields.
  • ASIC previously intervened at La Trobe Financial, which paused new investments in a retail fund before altering its documentation following discussions with the regulator.
  • The roadmap also targets public markets as IPO fundraising slumps and ASX reliability faces scrutiny, with ASIC engaging on Cboe Australia’s planned sale.