ASIC confirms further managed funds targeted surveillance

Mike Taylor

Managing Editor/Publisher, Financial Newswire

6 March 2026

The Australian Securities and Investments Commission (ASIC) has confirmed that it has further targeted surveillances underway in the managed funds sector, including private credit funds with a strategy of real estate lending.

The regulator outlines its regulatory activity in a submission to the Joint Parliamentary Committee on Corporations and Financial Services even before it is due to sit in Canberra today.

It said the surveillance work across retail and wholesale entities has a focus on distribution, fees, margin structures and conflicts of interest.

But, at the same time, ASIC is making clear to the Parliamentary Committee that it looking for a co-regulatory approach with industry bodies encouraging “industry to contribute to improving industry practices for private credit and private markets within the next 12 months on some of the poorer practices identified”.

“ASIC has challenged industry to improve industry standards by 2027 and understands some fund industry bodies have begun work on enhancing their standards,” the ASIC submission said.

“During 2026, we will continue to engage with and monitor industry bodies as they develop, enhance and embed better practices across the market. We expect to see meaningful improvements through our surveillance over that period.”

“In parallel, we will continue to act on other aspects of our planned future private capital funds sector activities including a targeted guidance refresh and enforcement,” the regulator said.

The ASIC submission also contains a significant plea for the Government to take the regulator’s views into account in the context of “well-considered managed investments and public law reform.

Referencing last year’s report on private markets, it said that it had outlined “that ASIC needs better tools from government for effective supervision of funds, including notification of wholesale funds in operation and independent audited financial reports for wholesale funds”.

“We also received ideas to reform the listing and corporate governance frameworks to enhance the competitiveness and attractiveness of our public markets (eg: to simplify executive remuneration and director liability requirements).

“ASIC has and will continue to engage with government on these important matters to look to opportunities for where some of these ideas can be considered in the future (eg: as part of future policy measures to enhance productivity and simplify regulatory frameworks.”