Regulatory Alerts2025-09-19
ASIC Issues DDO Stop Order Against RELI Capital Mortgage
The Australian Securities and Investments Commission issued an interim stop order against RELI Capital Mortgage Fund to prevent retail investors from acquiring a product with an inadequate Target Market Determination. The regulator identified specific deficiencies in the fund's risk assessment, suitability claims, and distribution conditions, thereby prohibiting RELI Capital from dealing in interests or providing advice regarding the fund for 21 days. Although the order was subsequently revoked following amendments to the Target Market Determination, the action highlights ASIC's enforcement of design and distribution obligations to ensure product suitability.
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