On Thursday, the Australian Securities and Investments Commission (ASIC) put interim stop orders in place for two products under the Australian Fixed Income Fund, which is operated by Stratfund Limited.
ASIC said the orders were intended to prevent consumers from buying products that may not suit their financial objectives, situation, or needs. The action sits under ASIC’s design and distribution obligations (DDO) powers, which let the regulator step in at the point of sale when it believes a product’s distribution settings are inadequate.
The interim orders prevent the affected products from being sold to new investors while they remain in place. For fund operators, AFSL holders, and distributor networks active in Australia, the intervention signals continued regulatory attention on target market determinations and product governance controls.
ASIC’s material did not identify the two products by name, did not set out specific breach findings, and did not include a response from Stratfund Limited. The orders remain at an interim stage, meaning ASIC has not yet published a final determination on the matter.
