In this Funds Update for 2 October 2026:
- Treasury seeks feedback on enhanced MIS data collection
- Interim DDO stop orders made re private credit MIS
- ASIC’s focus on private credit continues
1. Treasury seeks feedback on enhanced MIS data collection
On 23 September 2026, Treasury released a consultation paper proposing a new data collection framework for managed investment schemes (MIS), intended to improve regulatory visibility of MIS and support earlier identification of emerging risks following the First Guardian and Shield Master Fund collapses, through enhanced data collection at MIS registration and on a recurrent basis.
Key changes include:
- More registration data for registered MISs, including details of a MIS’ investment strategy and objective, fund structure, counterparties, liquidity and leverage profile, valuation methodologies, withdrawal conditions and fees.
- Recurring data collection for registered MISs, including information on assets under management, investor composition and flows, asset allocation, leverage, redemption activity, distributions, assets and liabilities, and cross-investments.
- Notification requirements for unregistered wholesale MISs, requiring operators to notify ASIC when a scheme commences or ceases and to provide baseline information such as the scheme name, investment strategy, investment manager and key service providers.
- Limited and targeted recurrent data from unregistered MISs, including information on scheme characteristics, investor attributes, asset allocation, leverage, redemption activity, investor flows, and assets and liabilities.
Under the proposal, responsible entities will also be subject to an ongoing obligation to keep registration data up to date, with updates required where there are material changes to the information previously provided.
Submissions for the consultation close on 28 November 2026.
2. Interim DDO stop orders made re private credit MIS
On 22 September 2026, ASIC made interim DDO stop orders against three private credit ‘account’ products offered by a professional trustee company in relation to a registered MIS.
ASIC considered that the target market determinations suggested:
- inappropriate levels of portfolio allocation as a ‘major component’ (up to 75%) and ‘core component’ (up to 50%);
- that the Fund is suitable for retail investors seeking ‘capital preservation’;
- inappropriate timeframes for retail investors to access capital; and
- an inappropriate rating of ‘low risk’ for the consumer’s risk and return profile.
ASIC has now issued 99 interim DDO stop orders and two final DDO stop orders.
3. ASIC’s focus on private credit continues
On 22 September 2026, Simone Constant, Commissioner of ASIC, gave remarks reinforcing ASIC’s ongoing focus on the private credit sector and the importance of governance, liquidity management and disclosure practices. In her remarks she:
- encouraged firms to adopt ASIC’s “10 principles of private credit done well“, as a benchmark for self-assessment and encouraged boards and investment committees to consider whether they have been embedded into governance and decision-making processes;
- highlighted the role of valuers, auditors and ratings agencies in maintaining investor confidence through robust and accurate assessments; and
- signalled that ASIC is continuing to closely scrutinise the private credit sector, stating that multiple investigations and surveillances are already underway and that ASIC will be particularly attentive to valuation practices, conflicts of interest and complex incentive structures.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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