Australia’s corporate regulator has temporarily halted fundraising by three private credit funds managed by Australian Secure Capital Fund (ASCF), citing concerns over the quality of disclosures provided to retail investors, according to a report by Reuters.
The Australian Securities and Investments Commission (ASIC) issued an interim stop order preventing ASCF from offering, issuing, selling or transferring interests in the ASCF Premium Capital Fund, ASCF Select Income Fund and ASCF High Yield Fund.
ASIC said it had identified potential shortcomings in the funds’ product disclosure statements (PDS), including insufficient information about loan portfolios and diversification measures. The regulator also raised concerns that some disclosures were not presented clearly enough for investors to assess the products effectively.
In addition, ASIC said the documents may contain a misleading statement and fail to provide adequate information about the costs associated with disposing of an investment in the funds.
The regulator said it could seek to make the stop orders permanent if ASCF does not address its concerns within an appropriate timeframe.
