The Australian Securities and Investments Commission (ASIC) has halted offers of three private credit products under the Remara Cash Management Fund over concerns about their target markets for retail investors.

ASIC issued interim stop orders against Melbourne Securities Corporation Limited covering the fund’s 6 Month Fixed and Variable Account, 12 Month Fixed and Variable Account and At Call Account.

The regulator identified deficiencies in the products’ target market determinations.

ASIC raised concerns over portfolio allocations of up to 75% as a major component and 50% as a core component, as well as the fund’s suitability for investors seeking capital preservation.

It also questioned the timeframes for accessing capital and the products’ low-risk classification.

ASIC Commissioner Simone Constant said,

‘Where ASIC identifies concerns that products may be reaching retail investors they were not designed for, we will use our regulatory tools to act swiftly to intervene early, disrupt poor practices and protect investors from potential harm.’

The orders prevent Melbourne Securities Corporation from dealing in the affected products, issuing product disclosure statements or providing general financial product advice recommending them to retail clients.

They will remain in place for 21 days unless revoked earlier.

ASIC is reviewing private credit funds distributed to retail investors through direct and advised channels, alongside fees, margin structures and conflicts of interest in wholesale funds.

The Remara Cash Management Fund had A$39.856 million in assets under management as of 31 December 2025.

It invests in short-term notes linked to Australian credit assets, including residential mortgage-backed, asset-backed and mortgage-backed securities.

The fund may invest up to 100% of its assets in shadow-rated instruments, which use internal credit assessments where no public rating is available.

It is not capital protected or guaranteed, and investment returns are not assured.

ASIC has issued 99 interim and two final stop orders under Australia’s design and distribution obligations regime.

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