By Amy Bainbridge | Updated on Oct 08, 2026 at 01:24 AM
Australia’s corporate regulator has temporarily banned three more private credit products from being offered to investors, its latest move in a broader drive to address risks in unlisted markets.
The Australian Securities and Investments Commission said Thursday it had issued a so-called stop order on the product disclosure statement from Australian Secure Capital Fund Limited. The order prevents it from offering units in three registered managed investment offerings, which put money in short-term mortgages secured over Australian property. The funds had A$251.8 million ($175 million) in assets under management as of June 30.
The order “stops ASCF from offering, issuing, selling or transferring interests in the ASCF Premium Capital Fund, ASCF Select Income Fund, and ASCF High Yield Fund (the Funds),” ASIC said in the statement. Queensland-headquartered ASCF didn’t immediately have a representative available for comment when contacted by Bloomberg.
Read more: Australia Watchdog Halts Three Remara Private Credit Products
ASIC highlighted concerns, including a failure to clearly disclose information about the funds’ loan portfolio, and that information provided about the funds may have been misleading and omitted key points. It also raised concerns about the whether there was an investor reserve account to cover “impairments and capital losses.”
Last month, ASIC warned the private credit industry to expect more enforcement action. It came after the insolvency of Sydney developer Bathla Group.
The interim stop orders against ASCF products arose from ASIC’s surveillance of private credit funds targeting retail investors through direct and advised channels.
“Firms must ensure their disclosures to investors are transparent and support informed decision making, including to help investors understand the strategies and risks of their products,” ASIC Commissioner Simone Constant said in the statement.
“As foreshadowed in all our work in the private credit space, where ASIC identifies disclosure concerns, we will act swiftly to protect investors from potential harm and promote higher standards across the sector,” Constant said.