ASIC Stops Angas Securities From Dealing in Interests in Two Funds

The Australian Securities and Investments Commission (ASIC) has issued interim stop orders preventing Angas Securities Limited from offering, issuing, selling or transferring interests in two managed investment schemes: the Angas Prime Income Fund and the Angas Direct Mortgage Fund. ASIC says the funds’ product disclosure statements (PDSs) may not adequately explain Angas Securities’ financial position, while the Prime Income Fund’s disclosures may also fail to detail its exposure to the collapsed Bathla Group and related risks. ASIC’s concerns about the Prime Income Fund’s PDS include disclosure of Bathla Group borrowers, defaults, liquidity, loan-to-value ratios and portfolio diversification. The regulator also says information about loan-to-valuation limits is not presented clearly, concisely and effectively. For both funds, ASIC says the PDSs do not disclose material information about Angas Securities’ financial position, including a net asset deficiency, a breach of net tangible asset requirements and a proposed capital raising. The statements also do not explain what could happen to the funds if the company cannot raise enough capital to continue as a going concern, ASIC says. Angas Securities is the responsible entity of both funds and holds Australian financial services licence 232479. As at 30 June 2026, the funds held about $114 million in investor funds: $78.6 million in the Direct Mortgage Fund and $35.1 million in the Prime Income Fund. The funds both provide exposure to mortgage lending, but the Prime Fund is pooled while the Direct Fund is contributory. ASIC said the orders are interim and it will consider whether to make them final after giving Angas Securities an opportunity to be heard. Commissioner Simone Constant said the Bathla Group’s collapse highlighted the need for clear and timely risk disclosures, strong governance and appropriate valuations in private credit. ASIC is also engaging with Bathla’s voluntary administrators to trace $3.2 billion in funds loaned to the group and is making inquiries into possible further action. The regulator said it will publish results of its next private credit surveillance on 10 November 2026.