Australia Regulator ASIC Issues Interim 21-Day Ban on 2 Fund Managers Australia $13 Billion La Trobe & $33 Million RELI Capital for 3 Investment Funds 1) La Trobe Australian Credit Fund (12-Month Term Account & 2-Year Account Products), 2) La Trobe US Private Credit Fund & 3) RELI Capital Mortgage Fund
19th September | Hong Kong
The Australian Securities & Investments Commission (ASIC) has issued interim 21-day ban on 2 fund managers Australia La Trobe ($13 billion AUM) & RELI Capital ($33 million AUM) for 3 investment funds 1) La Trobe Australian Credit Fund (12-month term account & 2-year account products), 2) La Trobe US Private Credit Fund & 3) RELI Capital Mortgage Fund. See below for full details:
“ Australia Regulator ASIC Issues Interim 21-Day Ban on 2 Fund Managers Australia $13 Billion La Trobe & $33 Million RELI Capital for 3 Investment Funds 1) La Trobe Australian Credit Fund (12-Month Term Account & 2-Year Account Products), 2) La Trobe US Private Credit Fund & 3) RELI Capital Mortgage Fund “
![](https://www.caproasia.com/wp-content/uploads/2025/08/Air-Charter-Service-728x90-1.png")
La Trobe Australian Credit Fund – ASIC has made interim stop orders against the 12 Month Term Account and 2 Year Account products offered under the La Trobe Australian Credit Fund (Fund), a registered managed investment scheme operated by La Trobe Financial Asset Management Limited (La Trobe) due to deficiencies in the target market determination (TMD) for both products. ASIC is concerned that target market for La Trobe’s 12 Month Term Account and 2 Year Account products:
- suggest an inappropriate level of portfolio allocation given the risks of the Fund, and
- do not include appropriate distribution conditions.
ASIC is taking this action to protect consumers and retail investors from acquiring products that may not be suitable for their financial objectives, situation or needs. The interim orders prevent 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 12 Month Term Account and 2 Year Account products. The orders are 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.
Background – The Fund provides investment offers in seven investment accounts with different investment terms, yield and characteristics. The 12 Month Term Account and 2 Year Account are invested almost entirely in loans secured by registered first mortgages, with the exception of small cash and term deposit holdings held to meet cash requirements. These products are not bank deposits. The rates of return are not guaranteed and are determined by future revenue of the pool of assets that comprise the account, the investment may also not generate the expected income returns and there are conditions around withdrawals. According to page 3 of the PDS the Fund had $11,605 million in assets under management at 30 September 2024. On its website La Trobe promotes itself as one of Australia’s premier alternative asset managers with $20 billion in assets under management and over 120,000 investors. Under the design and distribution obligations (DDO), financial product issuers and distributors must ensure the product’s TMD is clear and appropriately defines the target market, accurately reflects the product’s risks and features and includes appropriate distribution conditions. To date, ASIC has issued 91 interim stop orders and one final stop order under DDO since the inception of the regime. Where firms are not doing the right thing, ASIC can take quick action under DDO to disrupt poor conduct and prevent potential consumer harm.
La Trobe US Private Credit Fund – ASIC has made an interim stop order against La Trobe US Private Credit Fund (Fund), a registered managed investment scheme operated by La Trobe Financial Asset Management Limited (La Trobe) to protect consumers and retail investors from acquiring a product that may not be suitable for their financial objectives, situation or needs. 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.
Background – The Fund invests primarily into a portfolio comprised of senior secured first-lien term loans issued to US corporate middle market companies. These US companies are not rated by any rated agency and investing in these loans involves an above average amount of risk and volatility or loss of principal. The Fund was registered on 21 May 2024. At 31 December 2024 the half yearly financial report for the fund disclosed $215.8 million in net assets. Offers of the Class B units appear to have commenced in June 2024 and in the half year to 31 December 2024 $8.2 million has been raised in this class. On its website La Trobe promotes itself as one of Australia’s premier alternative asset managers with $20 billion in assets under management and over 120,000 investors. Under the design and distribution obligations (DDO), financial product issuers and distributors must ensure the product’s TMD is clear and appropriately defines the target market and accurately reflects the product’s risks and features. ASIC expects all issuers to regularly review their TMDs and make changes as necessary to ensure the accurate risks and features of the fund describes the target market. To date, ASIC has issued 91 interim stop orders and one final stop order under DDO since the inception of the regime. Where firms are not doing the right thing, ASIC can take quick action under DDO to disrupt poor conduct and prevent potential consumer harm.
RELI Capital Mortgage Fund – ASIC has made an interim stop order against the RELI Capital Mortgage Fund (Fund), a registered managed investment scheme operated by RELI Capital Limited (RELI Capital) to protect consumers and retail investors from acquiring a product that may not be suitable for their financial objectives, situation or needs. ASIC’s action follows concerns that the target market in the Target Market Determination (TMD) for the Fund:
- the target market potentially includes investors who intend to hold the Fund as a ‘Core Component’ (25-75%) of their portfolio
- the Fund’s risk level ‘Risk level 3 (Low to Medium)” is an incomplete measure of the Fund’s risk
- the TMD states that the Fund is suitable for investors seeking capital preservation, and
- the TMD specifies that no distribution conditions are necessary for the Fund.
The interim order prevents RELI Capital 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 recommends investors in the fund review whether the fund remains suitable for their financial objectives, situation or needs.
Background – As of 31 December 2024, the Fund held $50.9 million in net assets under management. RELI Capital is not the responsible entity of any registered managed investment scheme other than the Fund. Under design and distribution obligations (DDO), financial product issuers must define target markets for each of their products appropriately, with sufficient granularity, having close regard to the risks and features of the relevant product. Issuers also need to consider how their product will be distributed and have appropriate conditions in place to ensure the product is directed to the target market. To date, ASIC has issued 95 interim stop orders and one final stop order under DDO since the inception of the regime. Where firms are not doing the right thing, ASIC can take quick action under DDO to disrupt poor conduct and prevent potential consumer harm.
Australia Regulator ASIC Issues Interim 21-Day Ban on 2 Fund Managers Australia $13 Billion La Trobe & $33 Million RELI Capital for 3 Investment Funds 1) La Trobe Australian Credit Fund (12-Month Term Account & 2-Year Account Products), 2) La Trobe US Private Credit Fund & 3) RELI Capital Mortgage Fund
Caproasia Users
- Manage $20 million to $30 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2026 Investment Day
- March - Hong Kong
- March - Singapore
- April - Hong Kong
- April - Singapore
- July - Hong Kong
- July - Singapore
- Sept- Hong Kong
- Sept - Singapore
- Oct- Hong Kong
- Nov - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Institutional Investor Summit
- The Investment / Alternatives Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
