Personal Loan Finance Online :: News
SHARE

Share this news item!

ASIC Intensifies Oversight on Private Credit Market

ASIC Intensifies Oversight on Private Credit Market

ASIC Intensifies Oversight on Private Credit Market?w=400
The Australian Securities and Investments Commission (ASIC) is fast-tracking its oversight of the private credit market, focusing on retail distribution amidst potential risks in the asset class.
ASIC Commissioner Simone Constant disclosed that the regulator is prioritising this initiative in response to anticipated failures within the sector, as outlined in a discussion paper released earlier this year.

Speaking at the Investment Magazine Fiduciary Investors Symposium, Constant highlighted that this initiative is part of a broader multi-year program. Since the release of ASIC's discussion paper in February, major financial entities like Count have prompted advisors to reassess their involvement with funds associated with Metrics Credit Partners, underlining the ongoing debate regarding the appropriateness of private credit for retail clients.

Constant emphasised the need for scrutiny across the investment spectrum but identified retail investor interactions as a primary area of concern. She stated that ASIC is conducting related surveillance activities concerning the wider distribution of private credit products to retail investors.

The push for more stringent oversight by ASIC is critical as private credit grows in popularity among retail investors. The asset class offers an alternative investment opportunity and a credit source for borrowers, but with the rising distribution, the risks associated with suitability and transparency also increase. ASIC's accelerated attention aims to mitigate these risks and safeguard retail investors from unsuitable or high-risk products.

The regulator's intentions are not to stifle the market but to ensure the distribution practices align with proper governance standards and international benchmarks. Acknowledging the importance of private credit for the economy, Constant asserts that effective oversight and transparency need to be established without hastily imposing new regulations.

ASIC plans to release an expert insight paper to explore the future trajectory of Australia's capital markets, specifically focusing on the private credit environment and international transparency practices. The regulator’s proactive stance indicates an ongoing agenda to address the governance issues identified in recent reports.

Submissions from various industry stakeholders, including superannuation groups and financial councils, emphasise the need for balanced regulatory frameworks. They urge ASIC to avoid regulatory duplications while improving consumer protections. Notably, Super Consumers Australia has called for enhanced scrutiny to safeguard retail investors, particularly those investing in superannuation products.

As the private credit market is poised for growth, ASIC will continue to engage with industry experts and collect extensive feedback to refine its regulatory approach. This balanced strategy aims to increase investor confidence by ensuring the market's evolution is accompanied by robust investor safeguards and transparent practices.

Published:Thursday, 5th Jun 2025
Source: Paige Estritori

Share this news item:

Finance News

US Involvement in Israel-Iran Conflict Sparks Financial Market Concerns US Involvement in Israel-Iran Conflict Sparks Financial Market Concerns
23 Jun 2025: Paige Estritori

The escalating likelihood of the United States engaging militarily in the Israel-Iran conflict has raised alarm among investors, potentially leading to significant market volatility. This concern was highlighted by the global financial advisory firm, deVere Group, as tensions heighten in the Middle East. - read more
Global Markets Brace for Oil Price Surge Following US Strike on Iran Global Markets Brace for Oil Price Surge Following US Strike on Iran
23 Jun 2025: Paige Estritori

The recent US military attack on Iranian nuclear facilities has raised expectations of a significant oil price spike as global markets prepare to resume trading. Announced by former President Donald Trump, the attack marks an increased US involvement in the Middle East, which analysts believe could lead to heightened volatility across financial markets. - read more
Trump Mulls Change of Heart on Firing Fed Chair Powell Trump Mulls Change of Heart on Firing Fed Chair Powell
21 Jun 2025: Paige Estritori

US President Donald Trump is once again contemplating the dismissal of Federal Reserve Chair Jerome Powell, whom he has criticized for not lowering interest rates. Trump expressed his dissatisfaction with Powell's decisions in a Truth Social post, suggesting he might change his mind about firing him. Despite acknowledging that his strong criticisms make Powell's task challenging, Trump remains focused on his agenda for reduced rates, especially with Powell's term set to end in May 2026. - read more
APRA Clarifies HELP Debt Considerations in Home Loan Assessments APRA Clarifies HELP Debt Considerations in Home Loan Assessments
20 Jun 2025: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has released pivotal updates to the Prudential Practice Guide APG 223 and Reporting Standard ARS 223.0, focusing on how Authorised Deposit-taking Institutions (ADIs) should integrate Higher Education Loan Program (HELP) debt into home loan evaluations. The changes are aimed at enhancing regulatory clarity and acknowledging the individual circumstances of borrowers, including the nuances of their HELP debts, without compromising prudent lending practices. - read more


Personal Loans Articles

Your Guide to Debt Consolidation Loans in Australia Your Guide to Debt Consolidation Loans in Australia
Debt consolidation loans are a financial strategy many Australians use to manage their debt more effectively. Essentially, they allow you to combine multiple debts, such as credit cards, personal loans, and other liabilities, into a single loan with one monthly payment. This can make it easier to manage your finances and could potentially reduce the amount of interest you pay over time. - read more
Are Unsecured Loans the Safer Choice? Weighing Your Options Are Unsecured Loans the Safer Choice? Weighing Your Options
Unsecured loans are a type of lending product that allow borrowers to obtain funds without the need to offer collateral. This means that the loan is not tied to any physical asset, such as a house or car, which can be seized by the lender if the borrower defaults. - read more
Smart Strategies for Managing Your Loan Repayments Smart Strategies for Managing Your Loan Repayments
Managing your loan repayments wisely is an essential aspect of financial health. When you stay on top of your obligations, it can lead to improved credit scores and financial freedom. This process involves more than just paying your monthly dues on time; it also includes planning and strategizing to make the most of your financial resources. - read more
Unlock Better Loan Options: Quick Fixes for Your Credit Score Unlock Better Loan Options: Quick Fixes for Your Credit Score
Your credit score plays a crucial role in your financial journey, especially when it comes to obtaining loans in Australia. It's essentially a numerical representation of your creditworthiness and helps lenders assess the risk of lending you money. - read more
Loan Eligibility and Approval: What You Need to Know Loan Eligibility and Approval: What You Need to Know
Navigating the world of personal loans in Australia can be daunting, but understanding the basics of loan eligibility and approval is essential. Personal loans can be a valuable financial tool, helping you manage unforeseen expenses or consolidate debt. However, securing a loan is often dependent on a variety of factors, and being prepared can make all the difference. - read more
Smart Strategies for Managing Your Loan Repayments Smart Strategies for Managing Your Loan Repayments
Managing your loan repayments wisely is an essential aspect of financial health. When you stay on top of your obligations, it can lead to improved credit scores and financial freedom. This process involves more than just paying your monthly dues on time; it also includes planning and strategizing to make the most of your financial resources. - read more
Your Guide to Debt Consolidation Loans in Australia Your Guide to Debt Consolidation Loans in Australia
Debt consolidation loans are a financial strategy many Australians use to manage their debt more effectively. Essentially, they allow you to combine multiple debts, such as credit cards, personal loans, and other liabilities, into a single loan with one monthly payment. This can make it easier to manage your finances and could potentially reduce the amount of interest you pay over time. - read more
Unlock Better Loan Options: Quick Fixes for Your Credit Score Unlock Better Loan Options: Quick Fixes for Your Credit Score
Your credit score plays a crucial role in your financial journey, especially when it comes to obtaining loans in Australia. It's essentially a numerical representation of your creditworthiness and helps lenders assess the risk of lending you money. - read more


Free Assessment

Loan Amount:
Postcode:
All quotes are provided free (via our secure server) and without obligation. We respect your privacy.

Knowledgebase
Credit Score:
A numerical expression based on a level analysis of a person's credit files, representing the creditworthiness of an individual.