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ASIC Promises Aggressive Action Against Risky Private Credit Funds
13 Nov
Summary
- ASIC to step up enforcement against poor private credit practices
- $200 billion private credit industry continues to expand in Australia
- ASIC to target misleading pricing by banks, insurers, and pension funds
In a significant move, Australia's corporate regulator, the Australian Securities & Investment Commission (ASIC), has announced plans to step up enforcement against private credit funds that fail to protect investors. This announcement comes as the $200 billion private credit industry in the country continues to expand.
ASIC's deputy chair, Sarah Court, will unveil the regulator's plans to take more aggressive legal action against poor private credit practices as part of its priorities for 2026. This crackdown aims to address the growing concerns over the lack of investor protection in the rapidly growing private credit sector.
Alongside the focus on private credit funds, ASIC has also stated that it will target misleading pricing practices by banks, insurance firms, and pension fund trustees. This broader initiative underscores the regulator's commitment to ensuring transparency and fairness in the financial services industry.
The announcement by ASIC reflects the increasing scrutiny on the private credit market, which has seen significant expansion in recent years. The regulator's move to strengthen enforcement and address pricing issues is expected to have a significant impact on the industry, as it seeks to protect the interests of investors and maintain the integrity of the financial system.
