Australia’s ASIC Halts Retail Sales of Three Remara Private Credit Products
The regulator took issue with target market terms that allowed retail allocations of up to 75% and rated the fund low risk.
September 23, 2026
Australia’s corporate regulator has barred Melbourne Securities Corporation Limited from marketing three private credit products under the Remara Cash Management Fund to retail investors, the latest step in its push against products it believes are reaching investors they were not designed for.
The Australian Securities and Investments Commission issued interim stop orders on September 22 against the fund’s 6 Month (Fixed and Variable) Account, 12 Month (Fixed and Variable) Account and At Call Account. The Remara Cash Management Fund, a registered managed investment scheme, had A$39.856 million in assets under management as of December 31, 2025.
The orders stem from deficiencies ASIC found in the products’ target market determinations, which Australia’s design and distribution obligations require issuers to prepare. Under those rules, issuers and distributors must define a product’s target market clearly and appropriately, reflect its risks and features accurately, and set appropriate distribution conditions.
Where the Regulator Drew the Line
ASIC raised four concerns with the fund’s target market:
- allocation levels it deemed inappropriate, with the products described as suitable as a major component of a portfolio, at up to 75%, or a core component, at up to 50%;
- the suggestion that the fund suits retail investors seeking capital preservation;
- timeframes for retail investors to access their capital that ASIC considered inappropriate; and
- a low risk rating in the fund’s consumer risk and return profile.
The release also described the portfolio. The fund invests in short-term notes linked to a pool of Australian credit investments, including AAA-rated and investment-grade securitized public and private residential mortgage-backed securities, asset-backed securities and mortgage-backed securities, as well as instruments carrying equivalent shadow ratings. Shadow ratings are internal credit assessments of issuers that lack public ratings, and the fund may hold up to 100% of its assets in shadow-rated instruments. ASIC noted that the fund is neither capital protected nor capital guaranteed.
What the Orders Do
While in force, the orders prohibit MSC from dealing in interests in the products, giving a product disclosure statement for them, or providing general financial product advice to retail clients recommending an investment. They remain valid for 21 days unless revoked earlier.
ASIC Commissioner Simone Constant tied the action to the regulator’s ongoing work on private credit risk. She said ASIC will move quickly to intervene early when it finds products reaching retail investors they were not designed for.
Part of a Wider Sweep
The orders came out of ASIC’s surveillance of private credit funds. That review covers distribution to retail clients through direct and advised channels, along with fees, margin structures and conflict-of-interest management at wholesale private credit funds. ASIC said it has issued 99 interim stop orders and two final stop orders since the design and distribution regime took effect.
