ASIC has made interim stop orders on the product disclosure statements (PDSs) for two classes of units of the TruePillars Investment (Fund), a registered managed fund promoted by T.P.R.E. Ltd.
The interim orders stop TPRE from offering, issuing, selling or transferring interests in the Pooled Unit and Loan Units of the Fund. ASIC made the interim orders to protect retail investors from acquiring products under PDSs that may be defective and not worded and presented in a clear, concise, and effective manner.
ASIC is concerned that the PDSs for the Fund may:
- omit information about the investments and terms of the investments of the Fund
- not adequately disclose the types of conflicts of interest that may be expected to occur and how these are managed
- fail to adequately disclose significant risks associated with an investment in the Fund including liquidity, withdrawals and valuation
- fail to adequately disclose the fees and costs of the Fund, and
- contain misleading statements about income distributions, loss reserves, liquidity, risk and withdrawals.
ASIC will consider making final orders if the concerns are not addressed in a timely manner. TPRE will have an opportunity to make submissions before a decision is made about any final stop orders.
The stop orders arose from ASIC's retail private credit surveillance which focused on fund transparency, governance, valuation practices, management of conflicts of interest and fair treatment of investors, conducted as part of its response to Australia's evolving capital markets (25-021MR).
Background
The Fund invests in notes issued by a related party which provides credit for a wide range of purposes including equipment financing, rideshare financing, business and trail book loans mezzanine loans (second mortgage), vehicles, agricultural equipment and lends on a secured and unsecured basis.
At 30 June 2025, the Fund had net assets attributable to members of approximately $14.6 million.
ASIC is able to issue a stop order where a PDS includes misleading statements or does not include:
- information about any significant risks associated with holding the product
- the fees and costs associated with an investment in the product
- information about other significant characteristics or features of the product or of the rights, terms, conditions and obligations attaching to the product
- any other information that may reasonably be expected to have a material influence on the decision of a reasonable person, as a retail client, whether to acquire the product, or
- where the information included in the PDS is not worded in a clear, concise and effective manner.
