The Australian Securities and Investments Commission has imposed an interim stop order preventing Fidante Partners Limited from issuing Class A units in the Ares Global Credit Income Fund. The regulator is concerned that the fund’s target market determination is inappropriate and that the product is unlikely to meet the objectives, financial situation and needs of retail clients within the stated target market. ASIC questioned the product’s suitability for consumers seeking capital preservation or having a medium to high risk and return profile. It also identified concerns over allowing allocations of up to 50% of a consumer’s investable assets and the timeframe for accessing capital. For 21 days, unless revoked earlier, Fidante cannot deal in the product, provide its product disclosure statement or give general financial product advice to retail clients recommending an investment. The action arose from ASIC’s surveillance of private credit funds, including their distribution to retail clients through direct and advised channels. The surveillance also covers fees, margin structures and conflict management in wholesale private credit funds. The Ares Global Credit Income Fund had AUD 799.9 million in assets under management as of June 30, 2026.
Australian Securities and Investments Commission imposes 21-day interim stop order on Ares Global Credit Income Fund units
The Australian Securities and Investments Commission has imposed a 21-day interim stop order on Fidante Partners’ issuance and retail distribution of Class A units in the Ares Global Credit Income Fund. ASIC considers the target market determination potentially inappropriate because of concerns over risk, capital preservation, portfolio allocations of up to 50% and access to capital.