Overview
- ASIC warned non-bank lenders and super funds to materially lift standards or face stronger action, maintaining active surveillance after recent steps including action that forced La Trobe Financial to amend investment documents.
- The private credit market is estimated to have expanded more than 500% since 2015 to roughly $200 billion, with growing allocations from superannuation funds heightening exposure.
- Reviewing 28 funds, ASIC found opaque fees, weak governance, poor valuation practices, inconsistent definitions of key terms, and limited disclosure of borrower charges relative to investor returns.
- ASIC reported retail investors received about 4–10% while borrowers were charged between 2.5% and 44.51%, and it is seeking law reform plus tools such as data collection and independent audits of wholesale funds.
- The roadmap also targets public-market confidence, citing an 82% drop in IPO equity raised, intensified scrutiny of ASX performance, and oversight of Cboe Australia’s sale to secure an appropriate owner.