Financial Services in Focus – Issue 105

Insights7 Nov 2025

By Emma Donaghue, Georgia Gray and Aash Velhal

Click on each heading below to read more about each of these areas: funds, superannuation, anti-money laundering, financial markets, banking and other financial services regulation.

Funds

ASIC releases roadmap for capital markets and reports on private credit and regulation of wholesale funds

On 5 November, ASIC released its roadmap to promote strong, efficient, and globally competitive capital markets in Australia 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).

REP 823, outlines a roadmap to unlock opportunities and tackle emerging risks in Australia's public and private markets by embracing new capital flows and technologies, keeping pace with evolving investor needs, and making it easier for business and growth capital.

The roadmap draws on critical findings from ASIC's new surveillance into the private credit sector (see REP 820). The report builds on the private credit expert insights released in September (REP 814), along with industry and expert insight from submissions received from around 100 sources in response to ASIC's discussion paper.

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

In private markets, the report outlines that ASIC needs better tools from government for effective supervision of funds, including notification of wholesale funds in operation, data collection, and independent audited financial reports for wholesale funds.

In addition, for private credit, ASIC will:

issue a catalogue that summarises fund managers' legal obligations and related ASIC regulatory guidance
refresh funds management regulatory guidance on a targeted basis
engage with industry bodies as they work to enhance industry standards.

With respect to its increased regulation of wholesale funds, ASIC has proposed raising the financial thresholds for the wholesale investor tests, extending financial reporting requirements to wholesale funds, and requiring fund managers to notify ASIC of wholesale funds in operation.

For further information, please refer to Hall & Wilcox's articles which summarise ASIC's report on private credit and public market trends and ASIC's proposed changes for regulation of wholesale managed investment schemes.

ASIC signals opportunity for industry to lift private credit standards

ASIC's latest progress update on Australia's public and private markets was released on 22 September. ASIC has called on industry bodies to lift their standards across Australia's private credit sector following expert observations on better and poorer practices detailed in Report 814: Private Credit in Australia (REP 814). You can read more in our latest article ASIC reveals private credit market red flags.

ASIC Chair Joe Longo stated that private credit plays a significant role in our capital markets, and REP 814 demonstrates the importance of adhering to existing regulation and highly regarded global standards to ensure confidence in Australia's rapidly expanding $200 billion private credit sector. Mr Longo said ASIC 'expects meaningful action in response to these findings and will not hesitate to intervene where progress falls short'.

In November 2025, ASIC plans to release its response to the recent discussion paper on Australia's evolving capital markets alongside its retail and wholesale surveillance findings. This response will include clear guidance on key principles, along with additional research and expert insights to guide ASIC's future priorities, work program and regulatory road mapping.

Payment licensing reforms

On 9 October, Treasury released the draft Treasury Laws Amendment Bill 2025: Payments System Modernisation - amendment of the Corporations Act 2001 (Draft Bill) for consultation. The Draft Bill follows two rounds of consultations and is intended to update and strengthen the regulatory framework for payment service providers (PSPs). This reform works with other initiatives from the Strategic Plan for Australia's Payments System.

Treasury is progressing the reforms in two tranches which each consider the two previous consultations on the list of payment functions and the licensing framework.

Draft legislation for Tranche 1 is being released for consultation in two sub-tranches. Tranche 1a covers core concepts and licensing obligations while Tranche 1b covers additional aspects of the framework.

The Draft Bill for Tranche 1a is open for feedback until 6 November 2025 while Treasury plans to consult on Tranche 1b in 2026.

For further information, please see our latest article Treasury proposes overhaul of payment system regulation: what you need to know.

ASIC remakes relief instrument for managed investment product consideration

On 29 September, ASIC announced it had extended relief regarding requirements relating to the pricing of interests in managed investment schemes registered before 1 October 2013. The extension of this relief is continued under Corporations (Managed Investment Product Consideration) Instrument 2025/629 with minor changes to:

simplify the requirements to document exercises of discretion affecting the pricing of interests and reduce the level of prescription in those provisions; and
provide that schemes with interests that are quoted on a financial market operated by Cboe Australia may rely on the relief.

ASIC remakes five legislative instruments providing financial reporting relief

On 24 September, ASIC announced it has remade five legislative instruments that provide financial reporting relief following recent industry consultation. The legislative instruments were scheduled to sunset on 1 October 2025.

The remade legislative instruments are:

For further details about the consultation on each of the instruments please refer to ASIC's media release.

Insurance

APRA implements minor updates to Health Benefits Fund Enforcement and Risk Equalisation Administration Rules 2015

On 16 September, APRA released final versions of the Private Health Insurance (Health Benefits Fund Enforcement) Rules 2025 and the Private Health Insurance (Risk Equalisation Administration) Rules 2025 (together, the Rules).

The Rules were remade as they were due to sunset on 1 October 2025. Public consultation occurred between January and March 2025, with all respondents supporting the proposed remake of the Rules.

The updated Rules came into effect on 30 September 2025 and are available on the APRA website:

AFCA launches joint consultation on life insurance Approaches

On 8 September, AFCA announced it is commencing consultation on two Approach documents that focus on key areas within life insurance complaints, being:

the AFCA Approach to the duty to take reasonable care not to make a misrepresentation - life insurance; and
the AFCA Approach to non-disclosure and misrepresentation - life insurance, which explains AFCA's approach to complaints involving the duty of disclosure and the requirement to not make a misrepresentation in life insurance.

Both Approaches incorporate legislative amendments to the Insurance Contracts Act 1984 (Cth) that came into effect in 2021 and apply to complaints that are non-superannuation complaints under AFCA's Rules.

The consultation period closed on 10 October 2025.

Financial product advice

ASIC issues new financial advice-related legislative instrument

On 11 September, ASIC announced a new legislative instrument, the ASIC Corporations (Financial Services Guide, General Advice Warning and Advertising Related Relief) Instrument 2025/234, which extends and consolidates the relief previously provided under:

All submissions received following ASIC's request for feedback in May 2025 were supportive of both proposals to extend the relief, and to remake the three instruments into one.

Financial markets

ASX commences public consultation on shareholder approval requirements

On 20 October, ASX released a public consultation paper on shareholder approval requirements for dilutive acquisitions and changes in admission status for dual listed entities.

ASX states that the consultation paper focuses on:

the issue of shares under a regulated takeover or merger;
when a dual listed company wants to change to ASX Foreign Exempt Listing status;
when a dual listed company proposes to delist from the ASX; and
significant changes to the nature or scale of a listed company's activities.

Submissions close 5.00pm 15 December 2025.

ASX to implement recommendations from independent panel review on the process for developing Corporate Governance Principles and Recommendations

On 16 October, ASX announced it will implement all recommendations from an independent review panel (Panel), established by the ASX Corporate Governance Council (ASXCouncil) in June 2025, to assess the future of corporate governance practices and principles for the Australian listed market.

The Panel was appointed after the ASX Council was unable to reach consensus earlier this year on changes to the 4th edition of the Corporate Governance Principles and Recommendations (Principles). In establishing the review, ASX asked the Panel to consider how ASX should continue to develop and maintain appropriate corporate governance principles and practices.

Key recommendations of the recently released report include the ASX assuming ultimate responsibility for developing, approving and issuing the Principles. To facilitate the development of the Principles, the Panel also recommended the establishment of an 'Advisory Group' comprised of members nominated by relevant peak bodies and other stakeholders, reflecting a cross-section of issuers and investors.

ASX is targeting the end of 2025 for Advisory Group members to be confirmed and an initial meeting called.

Financial Stability Review released

On 2 October, the RBA released its October 2025 Financial Stability Review (Review), which provides a comprehensive assessment of the health and resilience of Australia's financial system. The Review highlights that Australia's financial system remains well positioned to navigate a period of elevated global uncertainty. Maintaining this resilience will require lending standards to remain strong in the context of lower interest rates, and participants in the financial system to further strengthen their ability to manage operational and liquidity risk given the complex international environment.

By way of summary, the Review concluded:

Banks have maintained prudent lending standards and provisioning, are well capitalised and have large holdings of liquid assets. Despite non-performing loans increasing modestly, loan losses have remained very low, in part reflecting strong collateral values.
As the superannuation industry becomes a larger component of the Australian financial system, building resilience to shocks is a priority for the sector. In the future, superannuation funds will need to manage their market presence with care to avoid inadvertently amplifying stress in a severe market-wide liquidity event. The APRA first system risk stress test will provide further insights.
Enhancing operational resilience and crisis preparedness is a priority across the financial system. The concurrent cyber-attacks on Australian super funds and market volatility in April add to the case that financial system participants should further strengthen their resilience to operational and liquidity shocks.
Non-bank lenders are growing in importance in the Australian economy, but the sector's systemic impact currently remains limited by its small size.
General insurance firms remain well capitalised and profitable. Home insurance premiums remain at historically high levels, partly reflecting the increase in climate and weather events and related growth in reinsurance costs and building cost inflation. As insurance becomes less affordable in some parts of the country, underinsurance is likely to increase over time.

2025 Triennial Survey of Foreign Exchange and Derivative Markets

On 1 October, the RBA released its findings from the latest triennial survey of turnover in foreign exchange (FX) and over-the-counter (OTC) interest rate derivatives markets, which was conducted in the Australian market in April 2025.

The survey concluded that globally, the Australian dollar is the seventh most traded currency, down from sixth in the previous survey, and its share of turnover remained stable at around 6 per cent.

Activity in Australia's FX market in April 2025 reached its highest level on record. The survey was conducted during a period of heightened FX volatility and a surge of trading activity following several trade policy announcements by major economies.

ASX expands debt market data products

On 29 September, ASX announced it is expanding its debt market data product suite with the launch of Austraclear Debt Market Activity, Australia's leading settlement and central securities depositary system. This will provide increased transparency into repo, bond, and money market activity settled through the Austraclear system.

Data is drawn directly and in real time from the Austraclear system, providing valuable and unique insights for issuers, investors and intermediaries into Australia's debt market. These products are designed to provide customers with flexibility, allowing subscribers to tailor access according to their requirements, whether for private, public, or both types of data.

ASIC proposes extending stablecoin distribution exemption

On 25 September, ASIC announced its proposal to further amend ASIC Corporations (Stablecoin Distribution Exemption) Instrument 2025/631(Instrument 2025/631) to extend class relief for intermediaries engaging in the secondary distribution of a second stablecoin issued by AFS licensees.

Instrument 2025/631 exempts intermediaries from the requirement to hold separate AFS, Australian market, or Australian clearing and settlement facility licences when providing services related to stablecoins issued by an AFS licensee.

Instrument 2025/631 was made on 18 September 2025, and currently includes one stablecoin - the 'AUDM' stablecoin issued by Catena Digital Pty Ltd.

Consultation on the draft instrument closed on 2 October 2025.

Anti-money laundering

AUSTRAC releases Core Guidance for current and new reporting entities

On 17 October, AUSTRAC released core guidance to assist existing and new reporting entities comply with the imminent changes to the anti-money laundering and counter-terrorism financing (AML/CTF) regime. You can read more in our latest article AUSTRAC releases Core Guidance ahead of AML/CTF reforms.

The guidance is designed to help new reporting businesses understand and implement their new obligations, while giving existing reporting entities information on what will change.

The guidance was designed in partnership with peak industry bodies and includes practical information on how businesses can meet their obligations in a way that is cost-effective and scales to business size and complexity.

Risk insights and indicators are also included for each of the newly regulated sectors, as well as further support for the digital currency exchange sector.

We encourage current and future reporting entities to review the guidance in preparation for compliance with the reformed AML/CTF regime.

Reach out to our specialist team for tailored advice and assistance with AML/CTF compliance, including assessing your reporting group structure or developing an AML/CTF program.

Powers proposed to tackle high-risk products services and channels

On 16 October, AUSTRAC announced that the Minister for Home Affairs will seek to introduce a new power enabling AUSTRAC to restrict or prohibit certain high-risk products, services or delivery channels.

AUSTRAC CEO Brendan Thomas welcomed the proposed changes and placed particular emphasis on the utility of this power in combatting emerging cryptocurrency risks, such as crypto-ATMs.

AUSTRAC's Crypto Taskforce estimated that almost 150,000 transactions occur annually and approximately $275 million is being moved through crypto ATMs in Australia each year, with the majority of high-value crypto ATM transactions directly associated with scams and money mules with large volumes of money going to wallets in high-risk jurisdictions.

Details of the proposed amendments are set to be released 'in due course'.

Banking

ASIC urges ongoing customer focus following improvements in hardship support

On 25 September, ASIC released Report 815: Hardship, not as hard to get help (REP 815), as a follow-up to the landmark review into hardship practices of regulated lenders in 2024. REP 815 summarises the actions ASIC has taken and their observations since their initial review last year.

ASIC Commissioner Kate O'Rourke stated that though improvements had been made since the review, there are still some ongoing concerns with the hardship practices of lenders. These ongoing concerns relate to the 'cookie-cutter' approach taken by lenders, rather than facilitating a tailored response to a customer's circumstances.

As a key area of focus, ASIC will continue to monitor the progress of lenders that have been requested to provide action plans, including reviewing the reports from independent reviewers.

ASIC reduces complaints reporting frequency for small banks

On 24 September, ASIC announced it would grant a no-action position for small banks in relation to the required reporting frequency of internal dispute resolution (IDR) data, with reports now only required once per year, as opposed to the previous six-monthly requirement.

Changes to reporting frequency was one of the recommendations by the Financial Council of Regulators in their review into small and medium-sized banks. ASIC has proactively decided to adopt the no-action position now, ahead of formalising the technical and system changes expected in 2027.

Full details of this relief are set out in ASIC's no-action letter.

RBA issues variation to the Access Regime for the ATM System

On 17 September, the RBA announced it is varying the Access Regime for the ATM System (Access Regime), which took effect on 1 October 2025. The purpose of the variation is to accommodate the replacement of the associated industry-administered ATM Access Code with a new ATM Access Standard. The amendments to the Access Regime are minor and do not change its substantive requirements.

You can view the Access Regime for the ATM System Variation 2025 and the associated Explanatory Statement for more information.

ASIC remakes relief instrument for deposit product disclosure

On 15 September, ASIC announced that it has remade a legislative instrument that exempts authorised deposit-taking institutions (ADIs) from having to include interest rates in product disclosure statements and termination values in periodic statements for deposit products. This relief is provided by ASIC Corporations (Deposit Product Disclosure) Instrument 2025/509.

The relief aims to reduce the administrative burden on industry and encourage beneficial product changes for depositors, and ASIC has assessed that the instrument is generally operating effectively and continues to form a useful part of the legislative framework.

APRA releases quarterly authorised deposit-taking institution statistics for June 2025

On 11 September, APRA released the Quarterly ADI Performance and the Quarterly ADI Property Exposures publications for the quarter ending 30 June 2025.

The Quarterly ADI Performance publication contains information on authorised deposit-taking institutions' (ADIs') financial performance, financial position, capital adequacy, asset quality, liquidity and key financial performance ratios.

The Quarterly ADI Property Exposures publication contains data on commercial and residential property exposures, including detail on risk indicators, serviceability characteristics and non-performing loans.

Copies of the publications are available at Quarterly authorised deposit-taking institution statistics.

ASIC remakes basic deposit and general insurance product distribution legislative instrument

On 10 September, ASIC announced it has remade a legislative instrument that exempts AFS licensees from appointing a basic deposit or general insurance product distributor as their authorised representative.

The relief is extended by ASIC Corporations (Basic Deposit and General Insurance Product Distribution) Instrument 2025/520 which serves to promote wider availability of basic deposit and general insurance products to consumers by reducing the regulatory burden on providers.

Superannuation

ASIC sends clear message to super trustees amid glaring retirement communications gaps

On 14 October, ASIC raised concern that many Australians may not have the information they need to make confident and informed decisions about retirement after a review identified a lack of urgency in improving retirement communications among superannuation trustees collectively responsible for millions of members.

Report 818: From superficial to super engaged: Better practices for trustee retirement communications (REP 818) highlights that some trustees offer one-size fits all retirement communications aimed primarily at pre-retirees, missing opportunities to engage with members throughout retirement and provide more meaningful support. ASIC's review also found little evidence of trustees tailoring their messaging and delivery methods to meet the diverse needs and preferences of their member base, including those already in the retirement phase.

Calls to action for trustees include:

focus on informing members about retirement, rather than prioritising product promotion and member retention;
develop retirement communications that are better tailored to member needs, using meaningful member groups and nudges;
ensure retirement communications are accessible to culturally and linguistically diverse members and members with a disability;
adequately resource governance structures to execute the retirement income strategy and communications strategy, with appropriate oversight by executive and management-level staff; and
strengthen oversight of external service providers that develop and deliver retirement communications to ensure the communications meet quality, compliance and strategic expectations.

Better Targeted Superannuation Concessions changes

On 13 October, Treasury announced it is making practical changes to the design and implementation of its Better Targeted Superannuation Concessions (BTSC) policy in response to stakeholder feedback.

The adjustments include:

introducing a second threshold to better target super concessions on balances above $10 million;
indexing the large balance thresholds of $3 million and $10 million; and
moving to a realised earnings approach that aligns to existing income tax concepts.

The government will push back the start date of the reforms to 1 July 2026 to consult on final details and prepare legislation.

APRA calls for stronger action by platform trustees

On 7 October, APRA issued its letter 'Strengthening investment governance and member outcomes in Platform Trustees' calling for superannuation trustees to accelerate and escalate efforts to safeguard member's investments held in platform products.

APRA's letter provides insights into where improvements are required to uplift investment governance practices so that they are sufficiently robust and fit for purpose in further safeguarding member outcomes. APRA's overarching expectations for the industry are as follows:

on-boarding: trustees should improve on-boarding practices, including for trustee investment governance frameworks and policies, manner of reliance on external research and ratings, and identification and management of potential and actual conflicts of interest;
ongoing monitoring: trustees should improve their monitoring of investment options, including for trustee investment governance frameworks and policies, triggers, reporting and oversight; and
remedial action and member transfers: trustees should improve oversight where outcomes for members are not being delivered, with clearly defined processes to ensure timely and effective remedial action.

APRA will provide each in-scope platform trustee with an individual assessment letter bilaterally and escalate supervisory intensity as required. APRA Deputy Chair Margaret Cole said APRA would escalate supervision intensity to ensure appropriate steps are being taken by trustees.

APRA highlights strategic challenges for some trustees in promoting member outcomes over the longer term

On 2 October, APRA published its insights into the challenges faced by some superannuation trustees in operational efficiency, growth and competitive positioning. APRA considers these challenges significantly influence the scope trustees have to maintain and improve outcomes for members over the longer term.

In the paper 'Delivering member outcomes into the future', APRA discusses the dynamics shaping the ongoing evolution of Australia's superannuation system, including:

continuing industry consolidation leading to the reduction in the number of funds;
ongoing growth in the size of the superannuation system, with recent growth concentrated in the largest funds;
expense ratios trending downwards at an aggregate level, but material difference across funds; and
significant differences across funds in terms of natural cash flows and rollover dynamics.

APRA releases letter on the revocation of SRS 331.0 Services

On 1 October, APRA issued a letter announcing that it determined the Financial Sector (Collection of Data) (reporting standard) determination No. 17 of 2025, which revokes Reporting Standard SRS 331.00 Services (SRS 331.0).

The determination follows APRA's revocation of Prudential Standard SPS 231 Outsourcing (SPS 231) on 1 July 2025, which has been replaced by Prudential Standard CPS 230 Operational Risk Management (CPS 230). SRS 331.0 required registrable superannuation entity (RSE) licensees to provide information to APRA about the services provided to an RSE. Given CPS 230 requires APRA regulated entities to submit a register of material service providers to APRA on an annual basis, APRA has determined that SRS 331.0 is no longer required.

APRA publishes June 2025 edition of Quarterly Superannuation Industry Publication, Fund-level and Product Statistics

On 9 September, APRA published the Quarterly Superannuation Industry Publication, Quarterly Superannuation Product Statistics and the Quarterly Fund-Level Statistics.

The Quarterly Superannuation Industry Publication contains data on superannuation products, investment options, member demographics, and, for the first time, industry investments by asset class using the enhances classifications introduced under the Superannuation Data Transformation.

The Quarterly Superannuation Product Statistics publication lists all superannuation products offered by each APRA-regulated superannuation fund and the investment menus and investment options available through these products. The publication also contains granular information on fees and costs, investment performance, investment strategy and asset allocation for a range of products and investment options.

The Quarterly Fund-Level Statistics contains detailed member demographic information and total fund investments by asset sector types for each APRA regulated superannuation fund with more than six members.

Other financial services regulation

APRA refines proposals to facilitate easier access to alternative reinsurance arrangements

On 22 October, APRA released a response paper which builds on proposals from a consultation that commenced in 2024 and outlines refinements to its proposed updates to the general insurance reinsurance framework. The changes aim to facilitate easier access to different forms of reinsurance, including alternative arrangements like insurance-linked securities, while continuing to safeguard policyholder interests.

Industry feedback on draft prudential standards, prudential guidance, and reporting standards is invited by 30 January 2026.

Treasury releases merger notification waiver and control instrument - exposure draft

On 21 October, Treasury released the exposure draft for the merger notification waiver and control instrument.

The exposure draft sets out detail on:

the notification waiver process; and
changes in addition to the control exemption.

Treasury is seeking industry views on the exposure draft that will help finalise this instrument.

Submissions closed on 3 November 2025.

ASIC consults on extending relief for litigation funding arrangements and conditional costs schemes

On 20 October, ASIC announced it is inviting feedback on a proposal to extend the operation of two legislative instruments related to litigation funding until 31 March 2030.

ASIC Credit (Litigation Funding-Exclusion) Instrument 2020/37 and ASIC Corporations (Conditional Costs Schemes) Instrument 2020/38 (the Instruments) provide relief for litigation funding arrangements, conditional costs schemes and proof of debt arrangements that are not covered by the exemptions in the Corporations Regulations.

The Instruments are due to expire on 31 January 2026.

ASIC proposes to extend the operation of these Instruments to provide certainty for litigation funders, lawyers and members of litigation funding and proof of debt funding arrangements while the Government considers its policy position for these arrangements.

Submissions close on 14 November.

AFCA publishes latest edition of its Systemic Issues Insights Report

On 16 October, AFCA published the 7th edition of its Systemic Issues Insights Report, showcasing the systemic issues that were identified and resolved in the second half of FY24-25.

The report highlights opportunities to improve practices across Australia's financial services sector, including failures in complaint handling, gaps in recognising hardship and vulnerability, reliance on outdated systems, and misalignment between policy intent and frontline practice.

More than 342,000 consumers and small businesses benefited from AFCA's systemic work during this period, with $3.4 million secured in financial remediation. Beyond financial compensation, the work delivered significant non-financial outcomes, including credit file corrections, improved disclosures, and enhanced hardship processes. Both financial and non-financial remediation outcomes are critical for ensuring fairness and trust in Australia's financial services sector.

ASIC updates guidance on communicating audit findings to directors, audit committees and senior managers

On 15 October, ASIC updated Regulatory Guide 260: Communicating findings from audit files to directors, audit committees or senior managers (RG 260), providing updated guidance on how, when, and which audit file review findings will be communicated to directors, audit committees and senior managers.

The updates reflect:

ASIC's new responsibilities and powers following law reform to regulate the financial reporting and audit requirements of registrable superannuation entities; and
that the ASIC Act allows ASIC to communicate findings from audit file reviews to the relevant directors of superannuation trustees.

ASIC's annual report reveals strong growth in enforcement action and investigations and keen focus on strengthening markets

On 8 October, ASIC released its 2024-25 annual report which reveals how ASIC has ramped up enforcement activity and commenced a significant body of work to address regulatory complexity and strengthen Australia's markets.

Across the 2024-2025 financial year, ASIC invested heavily in its operational capabilities, including in its digital technologies, cyber resilience and data analytics. Notable significant outcomes from the program of work undertaken include:

publishing ASIC's first discussion paper into the dynamics of Australia's public and private markets;
launching the Regulatory Simplification Consultative Group;
commencing an inquiry into the ASX's governance, capability and risk management following serious and repeated failures;
reviewing the use of AI by financial services and credit licensees;
taking down over 6900 investment scam and phishing websites; and
securing $104.1 million in court-ordered civil penalties and $16.8 million in court-imposed criminal fines.

ASIC flags risks in offshore outsourcing after review identifies governance gaps

On 10 October, ASIC called on financial services entities to strengthen governance and risk management after a review found weaknesses in the use of offshore service providers (OSPs) exposing consumers and investors to potential harm.

ASIC Commissioner Alan Kirkland said AFS licensees are ultimately responsible for the operation of their businesses, even when they outsource to offshore service providers directly or through an intermediary, with the supervision of outsourced functions.

This review into the use of OSPs by financial advice licensees and responsible entities of registered managed investment schemes found the quality of risk management arrangements relating to their use varied significantly, with some entities failing to have a framework in place.

Licensees should take note that ASIC intends to continue monitoring the governance and risk management frameworks of financial services entities and, where necessary, hold them accountable for failing to have the right processes in place to protect consumer and investor interests.

ASIC outlines approach to breach and complaints data publications

On 25 September, ASIC published a feedback summary outlining its revised approach to publishing two public-facing dashboards containing IDR and Reportable Situations (RSs) data of AFS and Australian credit licensees. These revisions come following submissions received in response to Consultation Paper 383: Reportable situations and internal dispute resolution data publication.

Regarding RS data, ASIC decided not to proceed with the initial proposal to publish firm-level RS data. Instead, ASIC will publish aggregate-level RS data. However, ASIC will proceed with plans to publish firm-level IDR data, and in doing so, will make key changes to how the IDR data will be presented, including around complainant privacy, data comparisons and explanatory material to support contextualisation.

ASIC is set to publish the RS dashboard in October 2025, in line with legislative requirements, with the IDR dashboard to be published towards the end of 2025.

Inaugural UK-Australia Joint Financial Regulatory Forum

On 24 September, the inaugural UK-Australia Joint Financial Regulatory Forum (Forum) took place.

The Forum was attended by official representatives from HM Treasury, Australian Treasury, Bank of England, Financial Conduct Authority, ASIC, RBA and APRA.

In line with the commitments in the UK-Australia Free Trade Agreement signed in 2021, parties discussed priority areas, including regulatory reform, pensions regulation and digital assets.

Both sides expressed their support for multilateralism, and the UK set out Bank of England Governor Andrew Bailey's priorities as Financial Stability Board Chair. These priorities include continuing the work to mitigate risks from the non-bank financial institutions sector and the importance of effective surveillance tools to identify vulnerabilities in the financial system.

Regulatory reform

The UK and Australia exchanged information on their respective approaches for enabling market access, including recognising overseas regulatory regimes. The UK discussed ongoing work to deliver a competitive regulatory environment (including through the Financial Services Growth and Competitiveness Strategy, the Regulation Action Plan and progress on implementing the regulators' secondary international competitiveness and growth objectives) and Australia discussed work across the Council of Financial Regulators and its regulatory reform agenda. Further discussion included how better regulatory practice can support economic growth and benefit the financial system, the key lessons learned to date on how to improve regulatory arrangements, as well as the available evidence base and metrics for understanding how to factor growth considerations into regulation.

Pensions regulation

The UK and Australia discussed their respective pensions landscapes, including the use of 'Member Outcomes Assessments' in Australia and ongoing work on establishing a 'Value for Money' framework in the UK. This was followed by discussion of investment behaviours of Australian superannuation schemes and UK pension funds and associated policies.

Digital assets

The UK and Australia discussed their respective crypto asset and stablecoin regulatory developments, including in the global context, and explored potential similarities between their developing regimes.

ASIC issues new legislative instrument to facilitate digital disclosures

On 18 September, ASIC announced the making of a new legislative instrument, ASIC Corporations (Electronic Disclosure) Instrument 2025/447 (Instrument). The Instrument extends and consolidates relief previously provided under a number of legislative instruments due to sunset on 1 October 2025.

Relief provided under the Instrument includes:

permitting financial services providers to publish disclosure digitally and notify a client of its availability; and
relaxing the requirements about page length, the copy that can be provided on request, and placement of titles, relating to electronic disclosures.

Regulatory guide reissued on auditor reporting obligations to ASIC

On 18 September, ASIC reissued Regulatory Guide 34 Auditor obligations: Reporting to ASIC (RG 34). The reissued RG 34 consolidates and simplifies guidance on auditor breach notification and contravention reporting obligations to ASIC to better reflect ASIC's current regulatory approach and reflect changes to the law.

The changes include guidance on auditor obligations to report:

suspected contraventions in connection with sustainability reporting, and when conducting audits of registrable superannuation entities, corporate collective investment vehicles (CCIVs) and compliance plans of retail CCIVs;
attempts to unduly influence, interfere with and mislead the auditor;
conflicts of interest; and
the auditor's own suspected contraventions.

Enhancements to the Foreign Investment Portal

On 12 September, FIRB announced key enhancements to the Foreign Investment Portal, effective 13 September 2025, aimed at improving usability and efficiency for investors.

Major updates include:

New Competition Questions: submission forms now reflect the ACCC's updated merger control regime. Drafts created before 13 September 2025 must be updated to include these questions;
Improved Submission Management: draft and submitted applications are now clearly separated, with easier access to related records such as compliance reports and communications;
Enhanced User Access Controls: organisations can now invite, delink, and transfer users across accounts using the Linked User feature; and
Withdraw for Amendment Feature: users can now withdraw and amend submissions before decisions are made, retaining original data and transferring fees and assessments.

These enhancements are designed to improve the user experience and deliver greater efficiencies across the Portal.

ASIC proposes to remake relief instrument for non-cash payment facility exemptions

On 12 September, ASIC announced it is seeking feedback on its proposal to remake ASIC Corporations (Non-cash Payment Facilities) Instrument 2016/211 for a period of five years, providing exemptions for certain low risk non-cash payment facilities from all or part of the financial services regime in the Corporations Act, due to expire on 1 April 2026.

Feedback on the proposal closed on 8 October 2025.

ASIC signs Memorandum of Understanding with the International Financial Services Centres Authority

On 4 September, ASIC announced it has signed a memorandum of understanding (MoU) with the International Financial Services Centres Authority (IFSCA) to enhance cooperation arrangements to support closer engagement between Australia and India.

Under the MoU, ASIC and IFSCA expressed their mutual dedication to foster cooperation and build on the aims of the arrangement to facilitate mutual assistance and information sharing between ASIC and IFSCA on areas such as trends and best practice and the use of technology in financial markets, regulatory compliance and the supervision and enforcement requirements of market participants.

APRA releases letters sent to Treasurer Jim Chalmers and Finance Minister Katy Gallagher

On 4 September, APRA published two letters recently sent to Treasurer Jim Chalmers and Minister for Finance, Senator the Hon Katy Gallagher.

The letters outline the nine actions APRA is taking to support productivity while maintaining the strength and stability of the financial system in a balanced and efficient way, including with respect to the licensing regime of banks, capital requirements of life insurance, data reporting across all industries, and capital adjustments of banks. Further detail on the actions APRA is progressing are set out in APRA's Corporate Plan. These actions aim to improve regulatory efficiency and transparency, without compromising system financial safety and stability objectives.

The letters are available on the APRA website: APRA letter to Treasurer Chalmers and Minister Gallager, 31 July 2025 and APRA letter to Treasurer Chalmers and Minister Gallager, 12 August 2025.

Best-Practice Regulatory Principles for the Adoption of Standards

On 3 September, Treasury published its report 'Best-practice regulatory principles for the adoption of standards' (Report).

The Report develops an economic framework to guide governments and regulators in deciding whether to adopt regulatory standards. It emphasises the importance of assessing the impact of these standards on innovation, competition, market efficiency, consumers and international trade. Its aim is to promote the reduction of regulatory barriers in net-zero sectors and enhance regulatory alignment between Australia and New Zealand.

ASIC slashes red tape and calls for further regulatory simplification proposals

On 3 September, ASIC released Report 813 Regulatory Simplification (REP 813) revealing it has culled more than 9240 pages of regulation since the beginning of the year, and is calling for further ideas for regulatory simplification.

Simpler and clearer regulation was marked as a priority for ASIC in November 2024, and included the establishment of the ASIC Simplification Consultative Group, which comprises key leaders across business, industry and consumer groups.

In addition, REP 813 outlines ASIC's key initiatives in: