Key Takeaways
- • ASIC issued an interim stop order blocking offers, issue, sale or transfer of interests in the $573.2 million Murdoch Clarke Mortgage Fund, citing disclosure concerns involving its manager.
- • ASIC identified omissions on related-party transactions, inadequate explanation of fees and costs, unclear risk information, and insufficient disclosure of withdrawal terms in the product disclosure statement.
- • A final stop order remains possible unless concerns are resolved, with Murdoch Clarke able to make submissions before ASIC decides.
- • The action follows ASIC's early October halt on three mortgage schemes run by Australian Secure Capital Fund Limited, which held $251.8 million in assets at 30 June 2026.
- • ASIC Commissioner Simone Constant said a second private credit surveillance report is due soon and that practices are "not where we need them to be."
Summary
The Australian Securities and Investments Commission (ASIC) has issued an interim stop order against the Murdoch Clarke Mortgage Fund, a registered managed investment scheme with $573.2 million in net assets under management at 30 June 2026, according to The Adviser. The order prevents the manager from offering, issuing, selling or transferring interests in the fund. The fund mainly invests in interest-only loans, repayable on demand, secured by mortgages over vacant or developed land in Tasmania.
ASIC said the order was intended to protect retail investors from buying products under a potentially defective product disclosure statement (PDS). The regulator identified omissions concerning related-party transactions and inadequate explanations of investment fees and costs. It also questioned whether the PDS provided sufficient risk information and communicated those risks clearly, concisely and effectively, and said withdrawal details were neither adequately nor prominently disclosed. ASIC may impose a final stop order unless the concerns are resolved promptly, and Murdoch Clarke will be able to make submissions before that decision.
The action comes amid a broader regulatory push on private credit. ASIC Commissioner Simone Constant said the second private credit surveillance findings would be released soon, adding that "practices are not where we need them to be." The surveillance examines how private credit funds reach retail investors through direct and advised channels, as well as fees, margin structures and conflicts of interest in wholesale funds. The order follows ASIC's early October halt on offers in three mortgage schemes managed by Australian Secure Capital Fund Limited, which collectively held $251.8 million in assets at 30 June 2026.
ASIC has signalled private credit remains a key enforcement priority for 2026. Its November 2025 surveillance report examined 28 funds between October 2024 and August 2025. ASIC's September 2025 capital markets update estimated Australia's private credit market at about $200 billion, with roughly half directed towards real estate-related activity.
ASIC said the order was intended to protect retail investors from buying products under a potentially defective product disclosure statement (PDS). The regulator identified omissions concerning related-party transactions and inadequate explanations of investment fees and costs. It also questioned whether the PDS provided sufficient risk information and communicated those risks clearly, concisely and effectively, and said withdrawal details were neither adequately nor prominently disclosed. ASIC may impose a final stop order unless the concerns are resolved promptly, and Murdoch Clarke will be able to make submissions before that decision.
The action comes amid a broader regulatory push on private credit. ASIC Commissioner Simone Constant said the second private credit surveillance findings would be released soon, adding that "practices are not where we need them to be." The surveillance examines how private credit funds reach retail investors through direct and advised channels, as well as fees, margin structures and conflicts of interest in wholesale funds. The order follows ASIC's early October halt on offers in three mortgage schemes managed by Australian Secure Capital Fund Limited, which collectively held $251.8 million in assets at 30 June 2026.
ASIC has signalled private credit remains a key enforcement priority for 2026. Its November 2025 surveillance report examined 28 funds between October 2024 and August 2025. ASIC's September 2025 capital markets update estimated Australia's private credit market at about $200 billion, with roughly half directed towards real estate-related activity.
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