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In this Funds Update for 24 October 2025:
- PDS stop orders issued in relation to a credit fund
- Proposed public register of the beneficial owners of unlisted companies
PDS stop orders issued in relation to a credit fund
Earlier this week, ASIC announced that it had issued PDS stop orders in relation to the PDSs for two classes of units of a registered managed investment scheme credit fund.
The PDS stop orders are an example of ASIC's retail private credit surveillance which has focussed on "fund transparency, governance, valuation practices, management of conflicts of interest and fair treatment of investors, conducted as part of its response to Australia's evolving capital markets" (see our earlier articles of 26 September 2025 and 28 February 2025).
ASIC was concerned that the PDSs may fail to adequately disclose:
- information about the investments and terms of the investments of the credit fund;
- types of conflicts of interest that may occur and how these are managed;
- significant risks associated with an investment in the credit fund including liquidity, withdrawals and valuation; and
- fees and costs of the credit fund.
ASIC was also concerned that the PDSs contained misleading statements about income distributions, loss reserves, liquidity, risk and withdrawals.
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Proposed public register of the beneficial owners of unlisted companies
The government has announced that it will begin public consultation on proposed reforms to maintain a public register of unlisted companies. The purpose of the register is to increase transparency regarding who the ultimate controllers of a company are, not just the legal owners.
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