Angas Securities hit by ASIC stop orders
The Australian Securities and Investments Commission (ASIC) has made interim stop orders, temporary orders that stay in place while Angas is given a chance to be heard, against Angas Securities Limited over two mortgage funds. The orders stop Angas offering, issuing, selling or transferring interests in the Angas Prime Income Fund and the Angas Direct Mortgage Fund, which held about $114 million between them at 30 June 2026. Angas holds Australian financial services licence 232479 and is the responsible entity, the licensed firm that runs a registered fund, of both. ASIC announced the orders today in release 26-271MR.
ASIC’s central concern is that both product disclosure statements (PDSs), the documents telling investors what a product is and what risks it carries, leave out Angas’s own financial position. They do not mention a net asset deficiency, a breach of the net tangible assets (NTA) requirement, the minimum asset level a licensee must hold, or Angas’s proposed capital raising. Nor do they say what could happen to the funds if Angas cannot raise enough capital to continue as a going concern.
The Prime Income Fund is a pooled mortgage fund, in which investors’ money is combined into one loan portfolio. ASIC says its PDS also fails to disclose adequately the exposure to borrowers in the Bathla Group, defaults, liquidity, loan-to-value ratios (LVRs) or portfolio diversification. It adds that the PDS does not present its LVR limit information clearly, concisely and effectively. The Direct Mortgage Fund is a contributory mortgage fund, in which investors fund identified loans. ASIC raises only the firm-level omissions about that one.
| Fund | Type | Australian Registered Scheme Number (ARSN) | Held at 30 June 2026 | Bathla concern |
|---|---|---|---|---|
| Angas Prime Income Fund | Pooled mortgage fund | 091 887 400 | $35.1m | Yes |
| Angas Direct Mortgage Fund | Contributory mortgage fund | 151 979 645 | $78.6m | No |
Simone Constant, ASIC Commissioner, said:
Our message to private credit fund managers is crystal clear. Investors need clear and timely information about the risks they are taking on, particularly when circumstances change and private credit loans run into difficulty.
Simone Constant, ASIC
ASIC will consider final stop orders after giving Angas an opportunity to be heard. Angas’s financial statements attribute the NTA breach to a loss on a first mortgage loan investment not directly related to Bathla, and its directors expect the capital raising to be resolved by 31 December 2026. ASIC will publish its next private credit surveillance results tomorrow.
Source: ASIC media release 26-271MR
