The Australian Securities and Investments Commission has imposed an interim stop order preventing Australian Secure Capital Fund Limited from offering, issuing, selling or transferring interests in three registered managed investment schemes to protect retail investors from a potentially defective product disclosure statement. The order covers the ASCF Premium Capital Fund, ASCF Select Income Fund and ASCF High Yield Fund, which collectively held AUD 251.8 million in assets under management as of June 30, 2026. ASIC identified inadequate or unclear disclosures about the funds’ loan portfolios, diversification metrics and an investor reserve account intended to cover impairments and capital losses. It is also concerned that the disclosure statement may include a misleading or deceptive statement and omit information about the cost of disposing of an interest. The action arose from ASIC’s surveillance of private credit funds, including their distribution to retail clients and the fees, margins and conflict management practices of wholesale funds. ASIC may make final stop orders if the concerns are not addressed promptly.
Australian Securities and Investments Commission imposes interim stop order on three ASCF private credit funds over disclosure concerns
The Australian Securities and Investments Commission has temporarily halted offers and transactions in three ASCF private credit funds over potentially defective retail disclosures. Its concerns cover portfolio and diversification information, disposal costs and an investor reserve account. The funds held AUD 251.8 million in assets under management as of June 30, 2026.