ASIC halts Murdoch Clarke mortgage fund offers over disclosure concerns

Traders Union
All News
Regulators
ASIC halts Murdoch Clarke fund

Highlights

ASIC issued an interim stop order preventing Murdoch Clarke Mortgage Management Ltd from offering interests in its mortgage fund over defective disclosure concerns.
The product disclosure statement allegedly fails to adequately explain fees, disclose related party transactions, present risks, and detail withdrawal terms, raising risks for retail investors.
ASIC's private credit sector review targets deficiencies in product disclosure, conflict-of-interest management, and distribution of retail and wholesale private credit funds across the Australian market.

Interim order targets fund disclosure standards

As reported by ASIC, the interim stop order applies to the product disclosure statement issued by Murdoch Clarke Mortgage Management Ltd for interests in its registered managed investment scheme. The order stops the company from offering, issuing, selling or transferring interests in the Murdoch Clarke Mortgage Fund while the regulator's concerns remain unresolved.

ASIC says it made the interim order to protect retail investors from acquiring products under a product disclosure statement that may be defective and is not worded and presented in a clear, concise and effective manner. The regulator says the document may fail to disclose related party transactions, may not adequately explain fees and costs linked to an investment in the fund, contains insufficient risk information, and does not adequately and prominently disclose withdrawal details.

ASIC Commissioner Simone Constant says the regulator's second private credit surveillance findings will be released soon, but adds that current practices are already falling short of expectations. She says firms must ensure disclosures are transparent and support informed decision-making, and that ASIC will act quickly where it identifies investor harm risks.

ASIC says it will consider making a final order if the issues are not addressed in a timely manner. Murdoch Clarke will have an opportunity to make submissions before any decision on a final stop order is made.

Private credit scrutiny extends across retail market

The action arises from ASIC's surveillance of private credit funds, which focuses on how such products are distributed to retail clients through direct and advised channels. The review also examines fees, margin structures and conflict-of-interest management in wholesale private credit funds as part of ASIC's broader response to Australia's evolving capital markets.

The fund invests mainly in interest-only loans with principal repayable on demand and in mortgages secured over Australian real property in Tasmania, including vacant and developed land. ASIC says it can issue a stop order where a product disclosure statement omits all fees and costs associated with an investment, leaves out information that could materially influence a retail client's decision, or presents information in a way that is not clear, concise and effective.

Our earlier article on Chariot Claims’ $10 million Series A funding looked at how legal-tech platforms are scaling up to help consumers pursue high-volume claims tied to privacy allegations, hidden fees and hard-to-cancel subscriptions. It also noted that continued investment in AI-driven tools is accelerating automation in case review and research, reflecting a broader push for greater transparency and accountability in consumer-facing markets.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.