ASIC slams private credit sector for hiding risks from ordinary investors
ASIC's second major report finds private credit funds still hide risks and fees from investors. This affects millions of Australians through superannuation.
The corporate regulator ASIC is furious. ASIC's second major monitoring of private credit was released this week.
ASIC found the same problems continue: complex structures, lack of honesty, and poor sharing of risks. Private credit is lending outside banks.
It has issued hundreds of billions of dollars. Between November 2025 and August 2026, ASIC reviewed 24 funds holding $18 billion in combined assets.
ASIC found that many investors are not given the information they need to understand risks, fees and conflicts. The regulator has stepped up enforcement.
It issued six interim stop orders and multiple referrals for investigation. The problem is serious because most Australians are exposed through superannuation.
- $18 billion
- Assets reviewed
- 24
- Funds reviewed
- 6
- Stop orders issued
- November 2025 to August 2026
- Review period
Why it mattersPoor sharing of information in private credit means ordinary Australians take financial risks they may not understand. This threatens their retirement savings and financial security.
AustraliaMost Australian superannuation members likely hold private credit investments without knowing the risks, making ASIC's concerns about the sector's opacity an immediate retirement income issue.
✓ Claims checked against the source. checked 8 h ago
