Australia’s private credit market is evolving fast, and fund managers are under increasing pressure to keep pace. In a webinar co‑hosted by FundPro and PMC Legal, industry leaders James Watson (Director, FundPro) and Paula McCabe (Legal Director, PMC Legal) break down ASIC’s Report 820, translating complex regulatory findings into clear, actionable insights.
This isn’t just another compliance update – it’s a chance to see where the industry is heading and how forward‑thinking managers can turn regulatory change into a competitive advantage. The session highlights both the risks to watch and the opportunities to seize, giving fund managers a practical roadmap to stay compliant, build trust, and stand out in a crowded market.
Understanding ASIC Report 820
ASIC’s Report 820 is one of the most comprehensive reviews of private credit fund practices to date. Conducted between October 2024 and August 2025, the surveillance covers 28 funds across retail and wholesale markets. The findings showcase clear examples of both stronger and weaker practices, sending a direct message: fund managers must raise their standards to align with regulatory expectations.
For managers, this report is not only a compliance checklist but a blueprint for building credibility. By addressing gaps in disclosure, governance, and valuation, managers can demonstrate leadership and reassure investors that their funds are built on transparency and trust.
The Rise of Private Credit Funds
Private credit is booming. Retail investors and superannuation funds are flocking to the sector, driving rapid growth and attracting ASIC’s attention.
As Paula McCabe emphasizes, disclosure practices are the critical differentiator. Managers who clearly define key terms, articulate strategies, and provide comprehensive risk profiles win investor confidence. Transparency isn’t just about meeting regulatory requirements, but about positioning your fund as a trusted choice in a competitive market.
Governance and Conflicts of Interest
Strong governance is the foundation of investor protection and long‑term success. ASIC’s report highlights the need for:
- Independent oversight that strengthens decision‑making.
- Conflict of interest policies that are actively applied, not just documented.
- Transparent records of related‑party transactions, eliminating ambiguity.
For fund managers, this means reassessing governance structures regularly. Committees must evolve with the size and complexity of the fund, ensuring the right mix of independence, expertise, and accountability. A well‑designed governance framework not only satisfies regulators, but builds investor trust and enhances reputation.
Valuation Practices and Fee Transparency
Valuation is one of the most sensitive areas for private credit funds. ASIC makes it clear: independent valuations should be the default wherever possible. This reinforces credibility and reduces the risk of bias.
Fee disclosure is equally critical. Managers must strike the right balance, providing clarity without overwhelming investors or creating the perception of prohibitive costs. By collaborating with industry bodies to establish standardized disclosure regimes, managers can set themselves apart as leaders in transparency and fairness.
Regulatory Outlook and Practical Steps
ASIC’s regulatory roadmap for the next 12 to 18 months signals increased scrutiny. Priorities include:
- Updates to conflict of interest policies.
- Revisions to licensing exemptions.
- Expanded surveillance and enforcement activity.
For fund managers, the path forward is clear:
- Benchmark practices against ASIC’s principles.
- Engage with industry bodies to shape and anticipate regulatory developments.
- Invest in compliance infrastructure that adapts as requirements evolve.
By acting now, managers not only reduce regulatory risk but also position themselves as proactive leaders in governance and investor protection.
The regulatory landscape for private credit funds is changing. Those who adapt quickly will thrive. ASIC’s Report 820 sets a higher bar, but it also creates an opportunity for fund managers to differentiate themselves through transparency, governance, and proactive compliance. Managers who embrace these changes don’t just meet expectations; they build stronger relationships with investors, enhance credibility, and secure their place in a growing market.
View the webinar now: