ASIC Issues New Guidance Catalogue for Private Credit Fund Compliance

On 9 December 2025, the Australian Securities and Investments Commission (ASIC) released a regulatory catalogue summarising legal obligations and guidance for retail and wholesale private credit fund managers. 

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The objective of this catalogue is to help private credit fund managers assess and improve their current practices. It provides an overview of wholesale and retail fund obligations under the Corporations Act and the ASIC Act. 

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Here are the key takeaways for private and wholesale private credit fund managers in Australia:

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Expect Increased Regulatory Oversight and Surveillance

ASIC identified poor practices within the sector in early 2025. This spurred the release of the recent catalogue, identifying key considerations for wholesale and retail fund managers and a call to sharpen their practices. 

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According to ASIC, “done well," these changes can drive innovation and growth by complementing the traditional banking system. To ensure compliance, ASIC is launching targeted surveillance of the funds management sector, with a specific focus on:

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• Real estate lending strategies within private credit.
• Distribution practices, fee structures and margin arrangements.
• Management of conflicts of interest.

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Importantly, the catalogue doesn’t detail all relevant legal and regulatory obligations, nor should it substitute for legal advice. Rather, it’s a practical reference for retail and wholesale fund managers to enhance industry integrity and trust.

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Wholesale and Retail Fund Obligations 

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Under the Corporations Act, the general Australian financial services licensee obligations for wholesale and retail private credit fund managers include: 

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• Taking all necessary action to ensure that financial services covered by the licence are provided efficiently, honestly and fairly.
• Having in place adequate arrangements to manage conflicts of interest.
• Complying with financial services laws as well as conditions on the licence.
• Having adequate resources to provide those financial services and to carry out supervisory arrangements.
• Maintaining competence to provide financial services covered by the licence.
• Implementing adequate risk management systems.

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In addition, responsible entities (REs) of retail private credit fund managers are bound by specific duties, where they must:

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• Act honestly and exercise care and diligence.
• Act in the best interests of members and to prioritise members’ interests if they conflict with an RE’s interests.
• Comply with the scheme’s compliance plan.
• Ensure scheme property is valued at regular intervals.

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Private credit funds issued to retail investors are also subject to design and distribution obligations as well as a requirement to have appropriate dispute resolution systems. 

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While this isn’t a comprehensive summary of obligations under the Corporations Act, the catalogue provides guidance and further information. Again, it shouldn’t substitute for proper legal advice. 

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Paving the Regulatory Road Ahead

Private credit fund managers have a 12 to 18-month window to improve poor practices identified by ASIC, which intends to use the findings from its upcoming surveillance to refine regulatory guidance between 2026 and 2027. The goal is to provide clearer rules for private credit funds that address emerging risks.

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While the catalogue summarises existing obligations, it also signals a period of heightened scrutiny by ASIC. Financial services businesses operating in private credit, in particular, should use this tool to audit their internal processes to ensure they meet ASIC's efficiency, honesty and fairness benchmarks. 

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For expert legal advice that helps you align with existing and evolving regulatory expectations over the next 12 to 18 months, contact PMC Legal today. 

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