ASIC has made an interim stop order preventing Fidante Partners Limited (Fidante) from issuing Class A units in the Ares Global Credit Income Fund (Product) over concerns its target market determination (TMD) is not appropriate.

ASIC is concerned that Fidante has not met its design and distribution obligations (DDO) and considers that if the Product was issued to a retail client in Fidante’s target market, the Product would unlikely be consistent with the objectives, financial situation and needs of the retail client.

ASIC Commissioner Simone Constant said this action forms part of ASIC's ongoing work to address risks in private credit.

‘Where ASIC identifies concerns that products may be reaching retail investors they were not designed for, we will use our regulatory tools to act swiftly to intervene early, disrupt poor practices and protect investors from potential harm.’

ASIC is concerned that the target market in the TMD for the Product suggests:

• the Product is suitable for consumers with a medium to high risk and return profile
• that the Product is suitable for consumers seeking capital preservation
• an inappropriate level of portfolio allocation (up to 50% of a consumer’s investable assets) for investment in the Product, and
• an inappropriate timeframe for consumers to access capital.

The interim stop order prevents Fidante from dealing in the Product, giving a product disclosure statement for, or providing general financial product advice to retail clients recommending an investment in the Product. The order is valid for 21 days unless revoked earlier.

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

As 30 June 2026 the Ares Global Credit Income Fund (Fund) had $799.9m in assets under management.

The Fund invests in a portfolio of global bonds, global syndicated loans (primary and middle market), global asset backed securities including but not limited to commercial mortgage-backed securities and collateralised loan obligations, derivatives, cash and cash equivalents. Investors in the Fund may also be exposed to risks associated with subordinated (or residual) tranches of CLO Securities.

ASIC can issue a stop order for an inappropriate TMD. A TMD for a financial product is not appropriate if a financial product is unlikely to be consistent with the objectives, financial situation and needs of a retail client in the target market.