Private credit just got a deadline.
The Financial Services Council has published a mandatory private markets standard. Quarterly valuations, documented revaluation triggers and consistent credit terminology, binding from 1 July 2027. ASIC asked for it in 2025, and it lands in the same week the regulator pointed at the first cracks.
Hi folks,
A lot of movement in the private credit space this week with regulators. So let's jump into it.
The one thing.
FSC Standard No. 30 turns good practice into an obligation with a date on it.
In 2025 ASIC asked industry bodies for strengthened standards and now the answer is arriving. (ASIC, Report 823)
These requirements are specific rather than aspirational.
- Valuations move to at least quarterly, with documented triggers that force a revaluation.
- Credit managers have to use consistent terminology for arrears, defaults, impairments and loan-to-value ratios, and disclose deteriorating exposures as they deteriorate.
- Redemption arrangements have to reflect the fund's real liquidity profile, stress tested. (FSC)
What it means for a fund:
- The work between now and July 2027 is instrumentation, not policy drafting. A quarterly valuation you cannot evidence is the same as no valuation.
- Consistent terminology across a whole book is a data problem before it is a compliance one. Across the funds we spoke to, origination data, post-settlement financials and supporting documents sat in separate systems, joined by manual export and reconciliation. (The State of AI in Credit)
In the mix.
- ASIC and APRA want frontier AI awareness turned into action
- They ran nine roundtables across June and July with more than 600 people from over 380 entities, investment managers and credit providers among them, and published what they found.
- They provided a board checklist which asks whether escalation, shutdown and recovery decisions were made before an incident, and which providers your critical operations depend on.
- ASIC points to cracks in private credit
- ASIC Chair Sarah Court said the market is showing "the first significant cracks". The trigger is borrower failure rather than fund failure. Sydney developer Bathla went into voluntary administration on 25 August. Its parent, Universal Property Group, reported A$3.2 billion of liabilities at 30 June 2025, the majority owed to private credit funds.
- MA Financial capped its Secured Loan Series at 1% of fund FUM a month from 25 August as a "proactive measure". It is not the first fund to limit redemptions over the last 18 months. RBA Governor Michele Bullock on the sector: "People don't know where the leverage is. They don't know who is exposed."
- Bendigo and nib put real AI numbers in their FY26 results
- Bendigo named AI and automation as a lever behind A$65 to 75 million of gross cost savings from FY28, with 5,000 staff on Gemini Enterprise, 2,000 in an internal AI Academy, and mortgage operations headcount down 42.9% since July 2022.
- nib disclosed A$61 million of productivity savings in FY26, more than 26,000 hours of manual effort removed from its Australian contact centre, 345,000 queries through its internal tool from 700-plus staff, and 86.3% of Australian resident claims now processed by automation.
- This is now a trend rather than a datapoint. With CBA, Suncorp and IAG, five large Australian financial institutions have put AI benefit in results material. Not one private credit manager has been named as a beneficiary of anything (yet…).
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