Funds Update - 3 July 2026

In this Funds Update for 3 July 2026:

1. Proceedings against compliance committee members re Shield failures
2. TMD stop orders issued
3. ASIC proposes to withdraw financial reporting relief for uncontactable members
4. Professional Registers Search updated to include website addresses of AFS licensees
5. Additional paper forms now enabled for email lodgement

Proceedings against compliance committee members re Shield failures 

On 25 June 2026, ASIC commenced proceedings in the Federal Court of Australia against three former directors of the operator and manager of the Shield Master Fund (Shield) and two former compliance committee members for allegedly failing to meet their obligations. 

Compliance committee members have statutory duties under section 601JD of the Corporations Act 2001 (Cth) to act honestly, exercise reasonable care and diligence not to make improper use of their position or information they receive from the compliance committee. 

ASIC alleges that: 

• between April 2022 and November 2024, more than $530 million was invested in a registered managed investment scheme known as the Shield Master Fund (SMF) and around $305 million of that money was transferred to a related property development fund controlled by the operator, before being transferred to entities linked to the directors; 
• the funds were transferred without basic safeguards including proper security, valuations, oversight, or management of conflicts;
• investor money was used for unauthorised purposes without a sufficient connection to the intended property development projects, including payments to related parties and third parties without the required prior approval of scheme members; and
• there were failures to ensure compliance with the SMF compliance plan by failing to obtain valuations of the assets of SMF and manage conflicts of interest involving compliance committee members.

ASIC is seeking pecuniary penalties and disqualification orders against persons who were both directors and compliance committee members and pecuniary penalties against the compliance committee member who was not a director. 

Back ^

TMD stop orders issued

ASIC has made interim stop orders against two products (one being a private credit product) offered under a fund following its risk-based surveillance of managed investment schemes.  

ASIC was concerned that the target market determination (TMD) for the private credit product inappropriately suggested that the target market includes retail investors:

• seeking an investment goal of capital preservation or income distribution when the product is not designed to meet these objectives;
• who intend to hold their interest in the product as a core component (25-75%) of their investable assets;
• with an investment timeframe greater than three years where there is a four-year minimum investment term;  and 
• with a need to withdraw money on an annual basis.

ASIC was concerned that the TMD for the other product inappropriately suggested that the target market includes investors:

• seeking an investment objective of income distribution when distributions may not currently be paid;
• who intend to hold the product as a core component (25-75%) of their investable assets; and
• with a need to withdraw money on an annual basis and potentially on a quarterly basis where there is a minimum investment term of three years and withdrawals are discretionary.

To date, ASIC has issued 97 interim stop orders and two final stop orders under the design and distribution obligations (DDO) since the inception of the regime.

Back ^

ASIC proposes to withdraw financial reporting relief for uncontactable members   

On 5 June 2026, ASIC opened feedback on its proposal to withdraw financial reporting relief for uncontactable members before it expires on 1 October 2026. ASIC has assessed that ASIC Corporations (Uncontactable Members) Instrument 2016/187 is no longer being used due to changes in the Corporations Act 2001 (Corporations Act). Sections 110JA and 110F (4A) of the Corporations Act now provide similar relief where a member is uncontactable. 

Entities not covered by these requirements may need to apply to ASIC for individual relief aligned with Regulatory Guide 43: Financial reporting and audit relief (RG 43) (if ASIC proceeds with its proposal to withdraw ASIC Instrument 2016/187).

Stakeholders can send submissions with their feedback to [email protected] by 5pm AEST on Friday 17 July 2026.

Back ^

Professional Registers Search updated to include website addresses of AFS licensees  

ASIC is collecting and publishing website addresses of Australian financial services (AFS) licensees on its Professional Registers Search (PRS), with more than 6,500 AFS licensees invited to provide their website details since launching in early May. The PRS shows:

• an AFS licensee’s principal website and other websites (if provided);
• whether an AFS licensee does not operate a website; and/or
• whether an AFS licensee has not yet supplied their website addresses.

Back ^

Additional paper forms now enabled for email lodgement 

On 23 June 2026, ASIC announced that email lodgement is now enabled for 97% of paper-based forms. ASIC’s website contains a complete list of forms that can be lodged by email.

A further 42 forms (including sub-forms), representing more than 32,000 annual lodgements, have been transitioned to email lodgement. Key forms included span a range of common interactions, including:

• company reinstatements
• correction types not available online
• foreign company accounts
• court orders
• notice of resolution types not available online.

Back ^