A $573.2 million mortgage fund faces major disclosure questions as ASIC’s private credit crackdown gathers momentum.
The Australian Securities and Investments Commission (ASIC) has blocked offers in the Murdoch Clarke Mortgage Fund, issuing an interim stop order over disclosure concerns involving its manager.
The order prevents the company from offering, issuing, selling or transferring interests in the registered managed investment scheme, extending the regulator’s intervention across mortgage funds as it examines private credit practices.
The fund held $573.2 million in net assets under management at 30 June 2026.
It mainly invests in interest-only loans, with principal repayable on demand, secured by mortgages over vacant or developed land in Tasmania.
Disclosure gaps trigger intervention
ASIC said the order aimed to protect retail investors from buying products through a potentially defective product disclosure statement (PDS), raising concerns about both missing information and how disclosures were presented.
The regulator identified omissions concerning related-party transactions and inadequate explanations of investment fees and costs.
It also questioned whether the document provided sufficient risk information and communicated those risks clearly, concisely and effectively.
Details about withdrawals were another concern, with ASIC saying they were neither adequately nor prominently disclosed.
ASIC may impose a final stop order unless its concerns are resolved promptly.
Murdoch Clarke will be able to make submissions before the regulator decides whether to take that step.
Further private credit findings loom
ASIC Commissioner Simone Constant signalled that the action came amid continuing shortcomings across private credit, with another round of surveillance findings approaching publication.
“We’ll release the findings of our second private credit surveillance soon, however, it’s already clear that practices are not where we need them to be,” Constant said.
“Firms must ensure their disclosures to investors are transparent and support informed decision making. Where ASIC identifies concerns, we won’t hesitate to act swiftly to protect investors from potential harm.”
The order emerged from surveillance examining how private credit funds reach retail investors through direct and advised channels.
ASIC’s wholesale fund scrutiny also covers fees, margin structures and the management of conflicts of interest.
The action follows ASIC’s early October halt on investment offers in three mortgage schemes managed by Australian Secure Capital Fund Limited over significant disclosure concerns.
Those schemes collectively held $251.8 million in assets under management at 30 June 2026.
A widening regulatory focus
In June, ASIC warned that poor private credit practices remained a key enforcement priority for 2026, with several investigations underway alongside surveillance of retail and wholesale funds.
Its November 2025 surveillance report examined 28 funds between October 2024 and August 2025, identifying practices capable of harming investors and the wider financial system.
ASIC’s September 2025 capital markets update estimated Australia’s private credit market at about $200 billion, with approximately half directed towards real estate-related activity.
[Related: ‘Beyond warning’: ASIC tells private credit to expect ‘enforcement action’]
Want to see more stories from trusted news sources?
Make The Adviser a preferred news source on Google.
Click here to add The Adviser as a preferred news source.
