Australia’s financial watchdog, ASIC, has ordered La Trobe Financial Asset Management to temporarily stop marketing its US Private Credit Fund, citing concerns that it may not be suitable for investors. The stop order will last for 21 days and affects the promotion of the fund to new customers in Australia.
Background of the Stop Order
ASIC made the order on September 18, 2025. ASIC indicated that it is concerned the fund could be risky for investors, and the company must ensure its products align with what customers really need and comprehend. La Trobe Financial Asset Management is a credit asset manager in Australia, which is owned by Brookfield Corporation of Canada.
What Is La Trobe Credit Fund?
La Trobe’s US Private Credit Fund is a managed investment scheme that takes funds from investors and on-lends it, predominantly to United States borrowers. La Trobe Financial has over 45,000 investors and in excess of $5 billion in managed assets. The fund is not a bank deposit, and investors could be at risk of losing some or all of their money or being late to receive it back.
La Trobe’s Credit Fund Issues
La Trobe Financial has a long track record as a credit asset-focused investment manager. ASIC has, however, previously sanctioned the company for deceptive or misleading promotion of the stability and liquidity of its Australian Credit Fund. The penalties and litigation signal ongoing issues with the disclosure of risks associated with such investment products to ordinary consumers.
The stop order on the US Private Credit Fund shows ASIC’s continued vigilance to protect investors from funds that might appear safer than they actually are.
ASIC’s Reasons for the Action
ASIC told La Trobe to pause marketing the fund after reviewing its risk profile and how it is advertised to the public. The regulator wants La Trobe to make sure that customers fully understand the risks before they invest. This stop order follows earlier actions where La Trobe was fined for misleading advertising and statements that wrongly suggested investors’ money was ‘stable’ or always safe.
Impact on Investors
- The fund does not require investors to pull out, but no new sales and promotions for 21 days.
- In this period, La Trobe has to re-examine its fund documents and fix its advert to reflect the risk accurately and make it evident whether it is a product suitable for an everyday investor.
- ASIC says investors need honest, straightforward information, and products must be described accurately.
What Happens Next?
La Trobe Financial is expected to cooperate with ASIC and review how the fund is presented to potential investors. The outcome of the 21-day pause will depend on ASIC’s review and any changes La Trobe makes to its product marketing and risk disclosures. Investors are advised to read all fund documents carefully and consider professional advice before investing.
