ASIC says it’s ‘fed up’ with private credit sector’s seeming indifference to cleaning up its act

It is not for lack of trying, but ASIC is furious with the private credit sector’s seeming indifference to the regulator’s attempt to crack down on poor lending practices. The corporate cop’s anger is understandable too. Private credit has issued hundreds of billions of dollars of funds, and its lending practices fuel property development and construction. Private credit refers to lending outside the banking sector. Central to ASIC’s concerns is the opaque nature of the sector’s finances. It means investors remain in the dark on the risks of private credit investments. “I am absolutely fed up, at ASIC we are absolutely fed up,” ASIC commissioner Simone Constant said. ASIC has today released its second major surveillance of private credit in Australia. “We have drawn a line in the sand with a second comprehensive broad and deep surveillance report,” Ms Constant said. “Many investors are still not being given the information they need to properly understand the risks, fees and conflicts present in private credit investments,” ASIC found. The watchdog’s second major surveillance report of the sector found “complex structures, opacity and deficient disclosure practices persist”.

#ABCBusiness

Subscribe: http://ab.co/1svxLVE

Note: In most cases, our captions are auto-generated.

#ABCNEWS #ABCNEWSAustralia