Funds Update - 13 November 2026

In this Funds Update for 13 November 2026:

1. ASIC releases report 846 on private credit funds 
2. ASIC consults on a six months extension for FFSP exemptions and related guidance 
3. ASIC issues PDS interim stop orders against registered scheme 

1. ASIC releases report 846 on private credit funds 

On 10 November 2026, ASIC announced the publication of a new report on Australia’s private credit funds (Report 846) which outlines ASIC’s findings from its surveillance conducted between November 2025 and August 2026 in relation to 12 retail private credit funds, 12 wholesale credit funds and advice provided to 46 retail clients in relation to 6 private credit funds. 

REP 846 identifies continuing deficiencies in fee and risk disclosure, distribution practices and conflicts management. ASIC warns that funds should not wait until there is regulator engagement to improve their practices and reminds fund managers and product issuers that poor private credit practices are an enforcement priority for ASIC and it will take action where required to support fair and efficient markets and protect consumers.

For a summary of ASIC’s findings in REP 846, please see here.

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2. ASIC consults on a six months extension for FFSP exemptions and related guidance 

On 6 November 2026, ASIC announced it was consulting in CS 68 on a proposed:

• 6 months extension to the transitional arrangements for the current passporting and limited connection exemptions for foreign financial services providers (FFSPs), from 31 March 2027 to 30 September 2027; 
• update to ASIC Regulatory Guide 176: Foreign financial services providers; and 
• conditional relief under the new professional investor exemption to accommodate certain ‘follow the sun’ global operating models that transfer trading, risk management and operational functions between offices in different time zones.

For more information on these proposals see our FFSP update issued on 6 November 2026. 

The consultation closes on 4 December 2026.

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3. ASIC issues PDS interim stop orders against registered scheme 

On 9 November 2026, ASIC made interim stop orders in relation to two product disclosure statements (PDSs) issued in relation to interests in two registered managed investment schemes. 

ASIC was concerned that:

• the PDSs did not adequately disclose material information about the responsible entity’s financial position, including a net asset deficiency, a breach of its net tangible asset requirements, a proposed capital raising and the potential consequences if sufficient capital could not be raised; and 
• one PDS  did not adequately disclose the scheme’s exposure to the Bathla Group, as well as defaults, liquidity, loan-to-value ratios and portfolio diversification and did not present information about loan-to-valuation limits in a clear, concise and effective manner.

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