ASIC Launches Investigation Into Collapsed Bathla Group
ASIC says some advisers put up to 87% of clients’ funds into private credit as it probes Bathla-linked lending and disclosure failures.
- Australia's corporate watchdog ASIC has launched a formal investigation into the collapse of Sydney property developer Bathla Group, which entered voluntary administration in August owing at least $3.4 billion to creditors.
- The collapse has left more than 200 projects in doubt, including roughly 2,000 homes under construction and 13,000 in its development pipeline, after the developer was shut out by banks for being too risky.
- On Monday, ASIC ordered Adelaide-based private credit company Angas Securities to stop accepting new money into two funds, citing undisclosed financial exposure to the collapsed property group.
- ASIC's report examining 24 funds found financial advisers directed up to 87 per cent of client funds into single investments, revealing governance issues where the same manager acted on both sides of transactions.
- The Alternative Investment Management Association and the Alternative Credit Council issued new guidance to members on Tuesday to help operators maintain high standards and address systemic concerns in the private credit sector.
12 Articles
12 Articles
Sydney Morning Herald
Corporate cop investigating $3b collapse of major Sydney builder
Financial advisers are channelling money into a sector that ASIC has accused of being home to some operators that use hidden fees and shift investor cash around.
Australia Watchdog Probes Bathla as Private Credit Flaws Persist
Australia’s corporate regulator has opened an investigation into insolvent Sydney developer Bathla Group as its latest surveillance showed that poor practices persist in the country’s A$250 billion ($172 billion) private credit industry.
The Australian Securities and Investments Commission (ASIC), the corporate regulator, has launched a formal investigation into the collapse of Bathla Group, a major Western Sydney property developer. The investigation will focus on the group's operations prior to entering administration. Bathla Group entered administration in August this year with liabilities exceeding A$3 billion, and efforts to save the company ultimately failed. All of the gr…
Private credit under fire again, widespread failings persist
Private credit funds continue to lag in improving poor disclosure, distribution and conflict-management practices since ASIC handed down its scathing inaugural report into the opaque sector 12 months ago. A new ASIC investigation finds complex, multi-layered private credit funds are not only masking underlying assets but also exposing investors to heightened risks from poorly disclosed and managed structures and related-party arrangements - simi…
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