26-273MR ASIC finds private credit practices continue to leave investors in the dark

The regulator highlights complex structures and opacity as persistent issues. For compliance teams, this signals heightened regulatory scrutiny and potential enforcement risks. Firms involved in private credit—including issuers, distributors, and advisers—should review their disclosure frameworks to ensure transparency and clarity.

Key actions include: conducting gap assessments against ASIC's expectations, enhancing disclosure of fees and conflicts, simplifying complex structures where possible, and strengthening investor communication. Proactive remediation can mitigate regulatory action and reputational damage. Given ASIC's focus, firms should anticipate further surveillance and possible regulatory changes.

This also presents an opportunity to differentiate through best-in-class transparency, building investor trust and competitive advantage. Compliance leaders should prioritize this area and consider engaging with industry bodies to shape best practices.