ASIC lifts stop order on Remara fund

• The Australian Securities and Investments Commission lifted its interim stop order on the Remara Cash Management Fund.
• The decision allows the firm to resume accepting investor money into the fund.
• Remara updated its target market documentation to restrict portfolio allocation limits for retail investors.

The Australian Securities and Investments Commission lifted an interim stop order on the Remara Cash Management Fund managed by private credit firm Remara, following adjustments to the product's distribution guidelines.

The corporate regulator previously paused applications after raising concerns about capital preservation claims and unsuitable withdrawal timeframes for retail investors.

"The revised TMDs clarify that the relevant products are intended to represent a minor or satellite allocation within an investor’s investable assets, generally up to 25 per cent or 10 per cent, as applicable," said Remara in a statement.

Under the updated paperwork, the maximum suggested allocation for an investor's total portfolio was reduced from a previous range of 50% to 75% down to a lower limit of 10% to 25%.

The regulatory clearance enables the manager to resume normal capital flows across the affected fund structure.

The interim stop order was originally issued as part of a broader regulatory focus on private credit products distributed to everyday investors.

Remara operates as an unlisted private credit firm with a total loan book valued at $3 billion.