<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australia's burgeoning private credit sector has today been put on notice after the corporate watchdog found some lenders were covering up loan losses.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Australian Securities and Investments Commission (ASIC) is worried about the lack of clarity in the country's rapidly expanding $200 billion private credit sector.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Retail investors are at risk from loan defaults which could also impact the wider economy, the regulator says.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/sixfigure-warning-as-silver-tsunami-of-28-million-australians-race-towards-retirement/eba09da8-0629-4394-add9-47445d8843a9" rel="" target="_blank" title="Six-figure warning as 'silver tsunami' of 2.8 million Australians race towards retirement"><strong><span>Six-figure warning as 'silver tsunami' of 2.8 million Australians race towards retirement</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Concerns by ASIC come in a report based on the "surveillance" of 28 retail and wholesale funds between last October and August.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It revealed potential shortfalls by private lenders, including unclear reporting and terms; a lack of transparency about fees and interest rate margins; inadequate credit risk management; and weak governance.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The regulator has put forward proposals it wants to see adopted by the private credit industry, including clearer reporting of loan defaults to give investors an accurate picture of how funds are performing.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/finance/private-credit-sector-failing-customers-asic-investigation/20427743-0030-4d64-b8fa-8839dd7c7e0a" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>ASIC highlighted big differences between lenders in the standard of default reporting.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We are concerned that private credit fund reporting may not provide investors with a true reflection of non-performing and distressed fund assets," it said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>ASIC chair Joe Longo said most developed countries were grappling with the same changes and that there were major opportunities for Australia.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"This roadmap lays out the choices and future of Australia's markets. We want our markets – private and public – to grow," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"That growth means stronger businesses, more jobs and a boost to our economy.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Strong markets have strong market integrity. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We want to lay the foundations for managed investment schemes and private markets to sustainably thrive for the future benefit of business and investors."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f"><em><strong><span>DOWNLOAD THE 9NEWS APP</span></strong></em></a><em><strong><span>: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. Available on the</span></strong></em><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727"><em><strong><span>Apple App Store</span></strong></em></a><span> </span><em><strong><span>and</span></strong></em><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1"><em><strong><span>Google Play</span></strong></em></a><em><strong><span>.</span></strong></em></div></div>