The Australian Securities and Investments Commission (ASIC) has imposed interim stop orders preventing Angas Securities Limited from offering, issuing, selling or transferring interests in the Angas Prime Income Fund and Angas Direct Mortgage Fund. The action addresses concerns that their product disclosure statements inadequately explain Angas Securities’ financial position and, for the Prime Income Fund, exposure to the collapsed Bathla Group. The funds held approximately AUD 114 million in investor funds as of June 30, 2026.
For both funds, the concerns include missing disclosures about Angas Securities’ net asset deficiency, breach of net tangible asset requirements and proposed capital raising. The statements also fail to explain the implications for the funds if Angas Securities cannot raise sufficient capital to continue as a going concern. Its financial statements attribute the capital requirement breach to a loss on a first mortgage loan investment not directly related to Bathla. Directors expect the capital raising to be resolved by Dec. 31, 2026. Additional concerns about the Prime Income Fund cover inadequate disclosure of exposure to Bathla borrowers, defaults and liquidity risks. Disclosures about loan-to-value ratios and portfolio diversification are also deficient, while information on loan-to-valuation limits is not presented clearly.
ASIC will consider final stop orders after giving Angas Securities an opportunity to be heard. It will publish the results of its next private credit surveillance on Nov. 10, 2026.