Australia’s securities regulator temporarily barred Fidante Partners Ltd. from offering units in a credit fund, extending a clampdown on private credit investments. The Australian Securities and Investments Commission issued a 21-day interim stop order against Class A units of the Ares Global Credit Income Fund, citing deficiencies in how target investors were identified. ASIC questioned whether the fund was suitable for investors seeking to preserve capital, as well as provisions allowing investors to allocate as much as 50% of their investable assets to the product.
The move follows recent stop orders on three mortgage investment funds managed by Australian Secure Capital Fund, which collectively manage about A$250 million ($174 million). Those orders were imposed over inadequate disclosures about loan portfolios and exit costs. The fund had A$799.9 million under management as of June 30, investing in global bonds, syndicated loans, asset-backed securities and collateralized loan obligations.
ASIC said its intervention is part of broader surveillance focusing on distribution, fees, profit margins and potential conflicts of interest.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing