ASIC hits La Trobe with interim stop order
The Australian Securities and Investments Commission (ASIC) has made an interim stop order against the La Trobe US Private Credit Fund.
The regulator announced the stop order stating that it was aimed to protect consumers and retail investors from acquiring a product that might not be suitable for their financial objectives, situation and needs.
It said ASIC’s action follows concerns the Target Market Determination (TMD) for the Fund:
- suggests an inappropriate level of portfolio allocation given the risks of the Fund, and
- does not adequately specify an investment timeframe for retail clients.
The interim order prevents La Trobe from dealing in interests giving a product disclosure statement for, or providing general financial product advice to, retail clients recommending an investment in the Fund. The order is valid for 21 days unless revoked earlier.
This stop order referral arose from ASIC’s retail private credit surveillance which focused on fund transparency, governance, valuation practices, management of conflicts of interest and fair treatment of investors, conducted as part of its response to Australia’s evolving capital markets.
ASIC also announced similar action with respect to the La Trobe Australian Credit Fund.
Funny that. Where's all the class action litigation vultures? I thought they cared about equity.
Scrap it
If this does happen it will represent the biggest case of intergenerational theft ever. Older/pension members getting their balances artificially…
Didn't AusSuper lose over a Billion dollars in a failed investment in Plurasight?
There would be NO advice "vacuum" if the insane levels of red tape were removed. This conversation is utter nonsense.…