The Australian Securities & Investments Commission (ASIC) is considering changes to the regulation and supervision of private markets to protect consumers.
The corporate regulator said many Australians had indirect exposure to assets in private (unlisted) markets which could potentially leave them vulnerable to harm.
Private markets were among the most significant current, ongoing and emerging issues it was examining in 2025.
ASIC said it would lead discussions on key issues related to the ongoing and future success of Australia’s capital markets and seek feedback on whether regulatory settings and supervision approach needed to adapt to changing market dynamics.
“Domestic and international regulators and policy makers are taking steps to review and respond to issues arising from these changes and to consider potential vulnerabilities and harms that may emerge with growth in private markets,” ASIC said in its Key Issues Outlook.
“Both public and private markets are important to our economy and play a role in generating wealth. Through superannuation investments, many Australians have indirect exposure to private assets.
Private markets operate differently than public markets and are inherently less transparent.”
The regulator said it was increasing its surveillance of private markets and would review the governance of a sample of retail private credit funds’ responsible entities, including asset valuation and liquidity management practices.
This comes as The Australian newspaper reported ASIC was weighing up intervention in private lending and investment markets and preparing to publish a report about these markets and assets in February.
ASIC was approached for comment on the report but had received no response by the time of publication.
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