La Trobe settles ASIC stop order snag on Aus credit fund
La Trobe Financial has informed its investment clients and partners that it has come to an agreement with the Australian Securities and Investments Commission (ASIC) that the interim stop orders on its La Trobe Australian Credit Fund be lifted.
In an email sighted by Financial Newswire sent on Wednesday afternoon, La Trobe Financial confirmed the interim stop orders concerning the 12 Month and 2 Year accounts of the Australian credit fund had been removed after it had “worked closely” with the corporate watchdog to “meet their requirements”.
The fund manager confirmed it had updated its Target Market Determinations (TMDs) – which were the subject of contention in the original statement ASIC made about the interim stop orders – and made them available online.
La Trobe Financial also confirmed it had no further update that the interim stop order placed on its US Private Credit Fund was to be lifted at this time.
According to a notice posted on the La Trobe Financial website, the La Trobe Direct investment platform was also affected by the interim stop orders and access has now been reinstated. The manager also told its clients that it is “fully aligned with ASIC’s actions to lift standards in the private credit industry as well as its view on the importance of the private credit sector to the Australian economy”.
Where are all the ridiculous comments about “when will advisers ever learn” ?
Or “Hotel California” – Andy ?
One thing is certain, if an “adviser” does not really understand what a stop order due to a concern around TMD’s and DDO obligations actually means, perhaps they shouldn’t be advising clients.
With ASIC making plenty of noise now about Private Credit, of course many years too late to the party.
Slowed or stopped new investors along with many hitting the exit button.
ASIC will have helped the Private Credit sector have a very hard time.
Frozen funds and withdrawals are a certainty when too many want to leave at the same time and little to none coming in.
Advisers with clients in these funds may be asked how professional they are ?
I don’t understand your point.
Have you even analysed the funds in question or the reasons for the now lifted stop order ?
“ASIC had prevented three of La Trobe Financial’s seven fund offerings taking on new money. After this, La Trobe decided to freeze all the accounts.”
Totally incorrect.
None of the funds were frozen.
Unless you are talking about not taking new monies – that’s the point of the stop order.
In this industry, a freeze is taken to mean, you cannot redeem.