The Australian Securities and Investments Commission has imposed interim design and distribution obligation stop orders on three private credit products offered by Melbourne Securities Corporation under the Remara Cash Management Fund. The regulator found deficiencies in the products’ target market determinations that could expose retail investors to products unsuitable for their financial objectives, circumstances or needs. ASIC’s concerns include target markets permitting allocations of up to 75% as a major portfolio component and 50% as a core component, presenting the fund as suitable for capital preservation, inappropriate capital access timeframes and a low risk rating. The fund is neither capital protected nor capital guaranteed and may invest all its assets in instruments with internal shadow credit ratings. The orders, which remain valid for 21 days unless revoked earlier, prevent dealing in the products, issuing product disclosure statements and providing general financial product advice to retail clients recommending an investment.
2026-09-22Australian Securities & Investments Commission
Australian Securities and Investments Commission imposes interim stop orders on three Remara private credit products
The Australian Securities and Investments Commission has imposed 21 day interim stop orders on three Remara Cash Management Fund products over deficient target market determinations. ASIC raised concerns about permitted portfolio allocations, capital preservation claims, access timeframes and a low risk rating for products that are not capital protected or guaranteed.