Australian Securities & Investments Commission urges industry to lift private credit standards after REP 814 flags governance, fees and valuation concerns

The Australian Securities & Investments Commission has published Report 814 on Australia’s public and private markets, calling on industry bodies to raise standards across the private credit sector following an independent review of private credit funds. The report positions stronger, internationally aligned industry standards and compliance with existing financial services law as central to maintaining confidence as the sector expands. REP 814 sets out “better” and “poorer” practices and highlights areas needing attention, including opaque remuneration and fee structures, related-party transactions and governance arrangements, valuation practices, and inconsistent use of terms affecting disclosure. The findings align with early themes from ASIC’s retail and wholesale surveillance work, which has already resulted in design and distribution stop orders against RELI Capital Mortgage Fund and La Trobe’s US Private Credit Fund and Australian Credit Fund; ASIC also framed the sector as an AUD 200 billion market and warned it will intervene if progress is insufficient. In November, ASIC will publish its response to its discussion paper on evolving capital markets alongside further retail and wholesale surveillance findings, including guidance on key principles and additional research and expert insights to shape its future priorities, work program and regulatory roadmap.