Shifting dynamics in Australia’s capital markets: private credit and public market trends

On 5 November 2025, ASIC released 25-264MR: A roadmap for capital markets to grow our economy (25-264MR) and the following reports:

• REP 820: Private credit surveillance report: Retail and wholesale surveillance (REP 820);
• REP 821: Private capital market reporting: Global practices and lessons (REP 821);
• REP 822: Australia's capital markets: Forces shaping the next decade (REP 822); and
• REP 823: Advancing Australia's evolving capital markets: Discussion paper response report (REP 823).

The HW Funds team is preparing a detailed briefing paper about ASIC's latest reports which we will share with you soon. In the meantime, this article provides an initial overview.

REP 823 summaries the feedback received from stakeholders in response to ASIC's discussion paper Australia's evolving capital markets: A discussion paper on the dynamics between public and private markets (Discussion Paper), which was released in February 2025. The Discussion Paper highlighted issues (ie declining public listings, rapid growth in investment capital allocated to private markets and the growing significance of superannuation funds) and outlined ASIC's preliminary views on the opportunities and risks in public and private markets and invited feedback based on eight foundational questions. REP 823 responds to the feedback received and addresses the questions posed.

In REP 823, ASIC further outlines a roadmap to tackle emerging risks in Australia's public and private markets. The roadmap draws on critical findings from ASIC's recent retail and wholesale surveillance into the private credit sector (REP 820). REP 820 builds on the private credit insights released in September (REP 814).

The roadmap also draws on expert insights from Dr Carole Comerton-Forde about the forces shaping the future of Australia's capital markets (REP 822) and from EY Parthenon on international approaches to private markets reporting (REP 821).

ASIC Chair Joe Longo further reinforced that:

[ASIC] see[s] enormous opportunity for public and private markets to thrive and grow together especially as they embrace new technology and innovation…This roadmap is the launchpad for action, not the finish line. Australia should be bold and seize the opportunities ahead, so that our markets remain strong, dynamic and globally competitive.

Since the release of its Discussion Paper in February 2025, ASIC has engaged extensively with industry, reviewed nearly 100 stakeholder submissions, and worked with local and international regulators to deepen its understanding of private markets. ASIC has further:

• launched an inquiry into ASX group, with a focus on governance, capacity and risk management frameworks and practices (25-103MR);
• launched a two-year IPO trial for eligible ASX listings to access a shorter IPO timetable (25-096MR);
• approved Cboe Australia's listing rules;
• expanded the approved foreign market list;
• increased its focus on widespread non-compliance with financial reporting and audit obligations (25-169MR);
• released a report of its findings on financial reporting and audits relating to registrable superannuation entities (25-220MR);
• issued design and distribution interim stop orders against some retail and private credit fund operators and commenced enforcement investigations (25-205MR, 25-206MR, 25-208MR and 25-240MR);
• commissioned and released expert insights on the private credit market in Australia (REP 814); and
• released a progress update in September 2025 in response to REP 814 and activity to date (25-209MR).

In the next 12-18 months, ASIC will conduct the following activities in relation to private markets, data reporting and transparency, superannuation and public markets:

Private markets

• Conduct targeted surveillance of the funds management sector, including private credit funds with real estate lending strategies, with a focus on distribution, fees, margin structures and conflicts of interest;
• Continue surveillance of audited financial reports of private companies;
• Take enforcement action for breaches of law and deter future misconduct;
• Issue a regulatory catalogue summarising fund managers’ legal obligations and related ASIC regulatory guidance;
• Refresh funds management regulatory guidance to consider surveillance findings, reflect current risks and apply clearer guidance for wholesale funds;
• Update ASIC Regulatory Guide 181: Licensing: Managing conflicts of interest (RG 181);
• Update ASIC Information Sheet 251: AFS licensing requirements for trustees of unregistered managed investment schemes (INFO 251);
• Engage with the government on policy and potential legislative reforms for wholesale fund managers and the wholesale client definition; and
• Engage with industry bodies on their work to lift private credit sector practices. 
   

Data reporting and transparency

• Conduct a data pilot in the financial year 2026-27 for a small sample of retail and wholesale funds, working with industry and government data gathering agencies. 

Superannuation 

• Continue supervision of market conduct and integrity;
• Continue surveillance of the financial reports and audit files of superannuation funds;
• Review superannuation investment disclosures and the treatment of stamp duty in ASIC Regulatory Guide 97: Disclosing fees and costs in PDSs and periodic statements (RG 97); and
• Conduct a thematic review of trustee actions to disrupt high-risk superannuation switching.

Public markets

• Continue focus on market cleanliness and integrity;
• Foster competition and innovation in relation to amending listing frameworks, new trading platforms, and innovations such as tokenised markets;
• Streamline the IPO process;
• Implement neutral references to market infrastructure providers;
• Continue inquiry into ASX group, with a focus on governance, capacity and risk management frameworks;
• Review ASIC regulatory guides, with a focus on sell-side research, prospectus disclosure, fundraising publicity restrictions, and forecasts;
• Re-consider policy to streamline dual listings to attract international businesses to Australia’s public markets;
• Engage with the government and industry to streamline and simplify the corporate governance framework; and
• Consider the one-size-fits-all approach for listed entities and identify barriers to potential structural changes in disclosure and governance frameworks.