ASIC Includes Private Credit Market in Latest Watch List

The Australian Securities and Investment Commission (ASIC) is prioritizing oversight of the rapidly growing $200 billion private credit sector due to concerns over its opacity and potential risks. Following high-profile collapses in the U.S., ASIC aims to enhance governance and investor protection, emphasizing the need for transparency. The regulator has doubled investigations into financial misconduct, including issues related to superannuation funds that affected 12,000 Australians. ASIC warns that the illiquid nature of many private credit investments heightens the risk of sudden asset value declines.

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