Interim stop orders come a month after similar move against La Trobe Financial
The Australian Securities and Investments Commission (ASIC) has ordered TPRE to temporarily stop accepting investor funds into the TruePillars Investment fund.
TruePillars is an alternative lender specialising in equipment loans, rideshare finance, secured business loans and trail book loans.
In placing the interim stop orders, ASIC cited concerns that product disclosure statements of two classes of units of the TruePillars Investment fund may omit vital information and terms of the investments of the fund.
ASIC also identified potentially misleading statements around income distributions and withdrawals.
The fund, which had $14.6 million in net assets as of June 30, 2025, invests in notes issued by a related entity offering various secured and unsecured loans.
ASIC made a similar move against La Trobe Financial in September, when the alternative asset management giant received stop orders on two products offered under the La Trobe Australian Credit Fund due to alleged deficiencies in the target determination for both products.
The stop orders against La Trobe were swiftly lifted after the group updated its Target Market Determinations (TMDs).
TPRE has an opportunity to respond before ASIC considers finalising the stop orders. ASIC may permanently block the offer if the PDS remains misleading, unclear, or lacking essential risk and cost disclosures.
ASIC has been increasing its scrutiny on the private credit sector.
In an update to its review of Australia’s private credit funds sector launched in February, the regulator voiced concerns over opaque remuneration and fee structures; related-party transactions and governance arrangements; valuation practices; and inconsistent use of terms for effective disclosure.
ASIC chair Joe Longo said the report showed the importance of adhering to existing regulation and highly regarded global standards to ensure confidence in Australia’s rapidly expanding $200 billion private credit sector.
