Angas Securities hit with interim ASIC stop orders on two funds holding A$114 million

ASIC announced the orders on 9 November. Its concern is disclosure. The regulator said the product disclosure statements for both funds leave out material facts about Angas Securities' own finances, including a net asset deficiency, a breach of the net tangible asset requirement attached to its financial services licence and a planned capital raising. ASIC said the documents also say nothing about the consequences for investors should the company fail to raise enough money to stay a going concern.

The Angas Prime Income Fund, a pooled mortgage fund, held A$35.1 million. ASIC said its disclosure statement does not adequately cover its exposure to borrowers in the Bathla Group, the collapsed Sydney developer now in the hands of voluntary administrators, or its defaults, liquidity, loan-to-value ratios and diversification. The Angas Direct Mortgage Fund, a contributory fund, held A$78.6 million; ASIC's concerns about it relate to the manager's finances.

Angas Securities' financial statements, as cited by ASIC, say the licence breach followed a loss it booked on one first-ranking mortgage loan that was not directly connected to Bathla, and its directors expect the capital raising to be completed by 31 December 2026. We found no public statement from Angas Securities on the orders.

The orders are interim. ASIC said it will decide whether to make them final after giving Angas Securities a chance to be heard. ASIC Commissioner Simone Constant said the regulator is working with Bathla's administrators to trace A$3.2 billion lent to the group and wants to establish how many retail investors are affected.