The Australian Securities & Investments Commission has made interim stop orders against the Wealthon Vault Development Fund and The People’s Equity Fund, two products offered under the Australian Fixed Income Fund operated by Stratfund Limited. ASIC said deficiencies in the products’ target market determinations meant they could be sold to retail investors whose financial objectives, portfolio use or liquidity needs were not aligned with the products’ features. For the Wealthon Vault Development Fund, ASIC said the target market determination inappropriately included investors seeking capital preservation or income distribution, investors intending to hold the product as a core component of their investable assets, investors with a timeframe greater than three years despite a four-year minimum term, and investors needing annual withdrawals. For The People’s Equity Fund, ASIC said the target market determination inappropriately included investors seeking income distribution where distributions may not currently be paid, investors intending to hold the product as a core portfolio component, and investors needing annual or potentially quarterly withdrawals despite a three-year minimum term and discretionary withdrawals. The orders prevent Stratfund from dealing in interests in the products, giving a product disclosure statement for them, or providing general financial product advice to retail clients recommending an investment. The interim orders remain in force for 21 days unless revoked earlier. ASIC said the action arose from its risk-based surveillance of managed investment schemes and noted that the Wealthon Vault Development Fund is a private credit fund, an area covered by its 2026 enforcement priority on poor private credit practices.
Australian Securities & Investments Commission2026-07-02
Australian Securities & Investments Commission imposes interim stop orders on two Stratfund fund products over target market determination deficiencies
The Australian Securities & Investments Commission has issued 21-day interim stop orders against Stratfund Limited’s Wealthon Vault Development Fund and The People’s Equity Fund over deficiencies in their target market determinations. ASIC said the TMDs inappropriately captured retail investors seeking objectives, portfolio use and withdrawal access that did not match the products’ terms and features. The orders block Stratfund from dealing in the products, issuing disclosure documents for them or recommending them to retail clients through general advice.