Australian regulator halts sales of Fidante credit fund over investor suitability concerns

Challenger

13/10/2026 05:25

Oct 13 (Reuters) - Australia's corporate regulator on Tuesday temporarily barred Fidante Partners from selling units in a credit fund, citing concerns that the product's target market determination was not appropriate for the retail investors it was intended to serve.

Here are more details:
Australian Securities and Investments Commission (ASIC) said it is concerned Fidante may not have met product design and distribution obligations that apply to issuers and distributors 
The regulator said the Ares Global Credit Income Fund was unlikely to meet the objectives, financial circumstances and needs of the retail investors it targeted
ASIC said the fund's target market included investors seeking medium-to-high risk and return exposure while also looking to preserve capital
The interim stop order prevents Fidante from dealing in the fund, issuing a product disclosure statement for it, or providing general advice recommending the product to retail clients, ASIC said
This action forms part of ASIC's efforts to address risks in the private credit sector, Commissioner Simone Constant said   
The order remains in effect for 21 days unless revoked earlier 
Shares of Challenger Ltd CGF.AX, which includes Fidante among its investment businesses, fell as much as 2.3%, their steepest intraday decline since October 1
Fidante Partners did not immediately respond to a Reuters request for comment.
   

 (Reporting by Aamir Shaik Khalid and Keshav Singh Chundawat in Bengaluru; Editing by Sherry Jacob-Phillips)
 ((Aamir.SheikKhalid@thomsonreuters.com;))