Regulator blocks Class A sales of Ares Global Credit Income Fund for 21 days
The regulator questioned whether the fund suits medium to high-risk investors.
Australia's corporate regulator has temporarily barred Fidante Partners from offering units in the Ares Global Credit Income Fund. The pause is a 21-day stop order blocking sales of Class A units in the fund.
The regulator pointed to gaps in how the fund identified its target investors. The regulator also questioned whether the fund suits people seeking to preserve capital.
Concerns were also raised about liquidity, meaning how easily money can be turned into cash. Rules let investors put up to 50% of their money available for investing into the product.
The regulator's action is part of a wider clampdown on investment products seen as too risky for everyday investors.
- 21 days
- Stop order length
- Up to 50% of investable assets
- Allocation limit
Why it mattersIf you hold or are offered this kind of fund, check whether it suits your goals and how fast you can get money out.
AustraliaFor 21 days, Fidante cannot offer these units to Australian investors.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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