The Australian Securities and Investments Commission (ASIC) has issued interim stop orders against the La Trobe US Private Credit Fund and two accounts, the 12 Month Term Account and 2 Year Account products, offered under the La Trobe Australian Credit Fund.
It said this was to protect consumers and retail investors from acquiring a product that may not be suitable for their financial objectives, situation or needs.
For the US fund, it said this followed concern that the Target Market Determination for the fund suggests an inappropriate level of portfolio allocation given the risks, and does not adequately specify an investment timeframe for retail clients.
Meanwhile, it said there were "deficiencies" in the target market determination for both Australian fund products.
The interim orders prevent La Trobe from dealing in interests giving a product disclosure statement for, or providing general financial product advice to, retail clients recommending an investment in the funds. The orders are valid for 21 days unless revoked earlier.
ASIC said that to date, it has issued 91 interim stop orders and one final stop order under DDO since the inception of the regime.
La Trobe Financial is a major alternative asset manager in Australia with AUD$20bn in assets under management. The company has been contacted for further comment.
