ASIC has made an interim stop order on the product disclosure statement (PDS) issued by Australian Secure Capital Fund Limited (ASCF) offering units in three registered managed investment schemes.

The interim stop order stops ASCF from offering, issuing, selling or transferring interests in the ASCF Premium Capital Fund, ASCF Select Income Fund, and ASCF High Yield Fund (the Funds).

ASIC made the interim order to protect retail investors from acquiring products under a PDS that may be defective and not worded and presented in a clear, concise, and effective manner.

ASIC is concerned that the PDS:

• fails to disclose information about the Funds’ loan portfolio and diversification metrics and the information that is disclosed about these is not disclosed in a clear concise and effective manner
• may contain a misleading and deceptive statement and omit information about the cost of disposing of an interest in the Funds, and
• fails to adequately disclose details of an investor reserve account established to cover impairments and capital losses.

ASIC Commissioner Simone Constant said strong standards were essential in the private credit sector.

‘Firms must ensure their disclosures to investors are transparent and support informed decision making, including to help investors understand the strategies and risks of their products.

‘As foreshadowed in all our work in the private credit space, where ASIC identifies disclosure concerns, we willact swiftly to protect investors from potential harm and promote higher standards across the sector,’ Commissioner Constant said.

ASIC will consider making final orders if the concerns are not addressed in a timely manner. ASCF will have an opportunity to make submissions before a decision is made about any final stop orders.

The interim stop order arose from ASIC’s surveillance of private credit funds which is focused on the distribution of private credit funds to retail clients through direct and advised channels, also fees, margin structures and conflict-of-interest management in wholesale private credit funds.

This surveillance is being conducted as part of ASIC’s ongoing work in response to Australia’s evolving capital markets.

Background

At 30 June 2026, the Funds had $251.8 million in assets under management.

The Funds each invest in short-term mortgages secured over Australian real property (vacant land, residential, commercial, retail or industrial properties).

ASIC can issue a stop order where a PDS:

• does not disclose all the fees and costs associated with an investment in the product
• does not include information that may reasonably be expected to have a material influence on the decision of a reasonable person, as a retail client, whether to acquire the product, and
• includes information which is not worded and presented in a clear, concise and effective manner.