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

Challenger

13/10/2026 06:29

Updates with Fidante's comment in bullet 5
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
While new applications for retail and platform investors are paused, it does not impact the underlying operation of the fund, which continues to be managed in accordance with its investment objectives, a Fidante spokesperson said 
The stop order forms part of ASIC's efforts to address risks in the private credit sector, Commissioner Simone Constant said 
Fidante is an active investment management platform of Australia's Challenger, whose shares fell as much as 2.3% to their steepest intraday decline since October 1 
The order remains in effect for 21 days unless revoked earlier
   

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