ASIC issues first stop orders since heightened MIS surveillance

Yasmine Raso

Senior Journalist

2 July 2026

The Australian Securities and Investments Commission (ASIC) has issued its first interim stop orders since increasing its “risk-based surveillance” of managed investment schemes (MISs) and private credit practices as part of its 2026/27 enforcement priorities, with the orders levelled against two products managed under Stratfund Limited’s Australian Fixed Income Fund.

The corporate regulator said the target market determinations for the two products, the Wealthon Vault Development Fund – which is a private credit fund – and the People’s Equity Fund, were found to contain “deficiences” and raised concerns that the funds were inappropriate for a number of investors.

ASIC said the the Wealthon Vault Development Fund’s TMD “inappropriately suggests the target market includes retail investors:

• seeking an investment goal of capital preservation or income distribution when the product is not designed to meet these objectives,
• who intend to hold their interest in the product as a core component (25-75%) of their investable assets,
• with an investment timeframe greater than three years where there is a four-year minimum investment term, and
• with a need to withdraw money on an annual basis.”

Similarly, the TMD for The People’s Equity Fund “inappropriately suggests the target market includes investors:

• seeking an investment objective of income distribution when distributions may not currently be paid.
• who intend to hold the product as a core component (25-75%) of their investable assets, and
• with a need to withdraw money on an annual basis and potentially on a quarterly basis where there is a minimum investment term of three years and withdrawals are discretionary.”

The interim orders, now in place for 21 days, limit Stratfund’s ability to deal in interests, give a product disclosure statement for, or provide general financial product advice to, retail clients recommending an investment in the Wealthon Vault Development Fund and The People’s Equity Fund”.

According to ASIC, the Australian Fixed Income Fund had approximately $15 million in funds under management as of 30 June last year.

ASIC has issued 97 interim stop orders and two final stop orders under the design and distribution obligations (DDO) regime to date.