ASIC “Absolutely Fed Up” as Review Finds Private Credit Flaws Persist
Australia's corporate regulator says it is "absolutely fed up" with poor disclosure in the private credit sector. Its second surveillance report, covering 24 funds with $18 billion in assets, found fee, disclosure and conflict problems from a year ago persist.
Australia's corporate regulator, the Australian Securities and Investments Commission (ASIC), said on November 10, 2026 that it is "absolutely fed up" with the private credit sector after a second major review found poor practices have not been fixed.
Private credit means lending outside the banking sector. It funds property development and construction, and Australian funds have issued hundreds of billions of dollars.
"I am absolutely fed up, at ASIC we are absolutely fed up," ASIC commissioner Simone Constant said.
ASIC released its second surveillance report on the sector on the same day. Constant said the regulator had "drawn a line in the sand" with it.
What the review found
Between November 2025 and August 2026, ASIC reviewed 24 wholesale and retail private credit funds. Together they manage $18 billion in assets. The regulator also sampled financial advice given to retail investors on private credit.
It found that "complex structures, opacity and deficient disclosure practices persist". Many poor fee, disclosure, distribution and conflict management practices flagged in its first report, released in November 2025, remain.
"Many investors are still not being given the information they need to properly understand the risks, fees and conflicts present in private credit investments," ASIC found.
Enforcement so far
ASIC has made six interim stop orders and multiple referrals for further enforcement investigation.
This week it issued interim stop orders against Angas Securities Limited. They bar the firm from offering interests in two managed investment schemes. ASIC said the product disclosure statements do not adequately disclose Angas Securities' financial position, or one fund's exposure to the Bathla Group.
ASIC is concerned that investors in both funds may not have been properly informed about the firm's financial position and the risks arising from it.
Why regulators worry
Private credit is growing, and trouble in the sector could spread to the wider financial system. Lender CVS Lane, which had significant loans to the collapsed developer Bathla, limited investor redemptions this year.
The United States has been the centre of the stress. Blue Owl, a US private credit firm, had to cap withdrawals as software investments soured. Its two private credit funds again faced elevated redemption requests in the June quarter.
Regulators say monitoring is difficult because disclosure requirements are far lighter than in banking.
