Regulator urges stronger standards in Australia's private credit sector

A review found opaque remuneration and fee structures, amongst other concerns.

The Australian Securities and Investment Commission (ASIC) has called on the industry to lift private credit standards.

The call follows after ASIC commissioned a review of the private credit funds sector, valued at $200b. The study—conducted by infrastructure investment executive Richard Timbs and Nigel Williams, former group chief risk officer of the Commonwealth Bank of Australia— called out “concerning” private credit practices.

These include opaque remuneration and fee structures, related party transactions and governance arrangements, valuation practices, and inconsistent use of terms for effective disclosure, ASIC said in a statement on 22 September 2025.

“While the report highlights some encouraging practices, it also reveals concerning behaviours that fall short of market expectations and more importantly that are inconsistent with existing financial services law,” said ASIC chair Joe Longo.

“'Enhanced standards are needed to lift practices across the sector. They will help promote confidence, improve market integrity and empower investors to make informed decisions,” Long said.

ASIC is set to release its response to the discussion paper on Australia’s evolving capital markets in November. It will include its own retail and wholesale surveillance findings.

The response will include clear guidance on key principles, along with additional research and expert insights to guide our future priorities, work program and regulatory roadmap, according to ASIC.