ASIC lifts stop order on La Trobe 12 Month Term Account, 2 Year Account
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The news: The corporate regulator’s interim stop order on the La Trobe 12 Month Term Account and its 2 Year Account has been lifted.
However, a stop order on its US Private Credit Fund remains.
The context: La Trobe said the matter had been resolved with the Australian Securities and Investments Commission (ASIC) today.
Last week, ASIC imposed a stop order on the La Trobe 12 Month Term Account, 2 Year Account and its US Private Credit Fund after alleging deficiencies in the target market determination (TMD).
This was ASIC’s first action against a private credit fund following surveillance of the fast growing sector.
ASIC said La Trobe made amendments to the TMDs which addressed ASIC’s concerns.
The regulator said this included "reducing the percentage of investors’ investable assets considered to be appropriate for investment in the products from 50% to 25%, and the introduction of distribution conditions, including a questionnaire used by La Trobe to identify whether investors applying for interests in the products are in the revised target markets".
"As a result, La Trobe can recommence dealing in interests in the products," ASIC said.
