ASIC has made an interim stop order on the product disclosure statement (PDS) issued by Murdoch Clarke Mortgage Management Ltd (Murdoch Clarke) offering interests in its registered managed investment scheme.

The interim stop order stops Murdoch Clarke from offering, issuing, selling or transferring interests in Murdoch Clarke Mortgage Fund (the Fund).

ASIC made the interim order to protect retail investors from acquiring products under a PDS that may be defective and not worded and presented in a clear, concise, and effective manner.

ASIC is concerned that the PDS:

• fails to disclose information about related party transactions
• fails to adequately disclose information about the fees and costs associated with an investment in the Fund
• contains insufficient information about risks and the information that is disclosed about risks is not disclosed in a clear concise and effective manner, and
• fails to adequately and prominently disclose details about withdrawals.

ASIC Commissioner Simone Constant said, ‘We’ll release the findings of our second private credit surveillance soon, however, it’s already clear that practices are not where we need them to be.

‘Firms must ensure their disclosures to investors are transparent and support informed decision making. Where ASIC identifies concerns, we won’t hesitate to act swiftly to protect investors from potential harm.’

ASIC will consider making a final order if the concerns are not addressed in a timely manner.

Murdoch Clarke will have an opportunity to make submissions before a decision is made about any final stop order.

The interim stop order arose from ASIC’s surveillance of private credit funds which is focused on the distribution of private credit funds to retail clients through direct and advised channels, also fees, margin structures and conflict-of-interest management in wholesale private credit funds. This surveillance is being conducted as part of ASIC’s ongoing work in response to Australia’s evolving capital markets.

Background

At 30 June 2026, the Fund had $573.2 million in net assets under management.

The Fund invests in mainly interest only loans with principal to be repaid on demand and mortgages secured over Australian real property (land which is either vacant or built on) in Tasmania.

ASIC can issue a stop order where a PDS:

• does not disclose all the fees and costs associated with an investment in the product
• does not include information that may reasonably be expected to have a material influence on the decision of a reasonable person, as a retail client, whether to acquire the product, and
• includes information which is not worded and presented in a clear, concise and effective manner.