Financial Services in Focus – Issue 106

ASIC issues catalogue of key legal obligations for private credit funds

On 9 December, ASIC released a private credit fund catalogue (catalogue) summarising key legal obligations and regulatory guidance to help private credit fund operators more easily identify and comply with existing regulatory obligations.

It provides a practical reference point and applies to operators of retail and wholesale private credit funds in Australia. It does not include all applicable legal and regulatory obligations. 

The catalogue follows the roadmap for capital markets contained in Report 823 Advancing Australia’s evolving capital markets: Discussion paper response, which is discussed below. 

ASIC also intends to refresh regulatory guidance in 2026-2027 to consider private credit surveillance findings, reflect current risks, and apply clearer guidance for wholesale funds.

ASIC finalises new exemptions to support digital asset innovation

On 9 December, ASIC announced it has granted class relief for intermediaries engaging in the secondary distribution of certain stablecoins and wrapped tokens.  
The relief exempts intermediaries from the requirement to hold separate AFS, Australian market, or clearing and settlement facility licences when providing services relating to eligible stablecoins or wrapped tokens.

ASIC has also granted relief to allow providers to hold digital assets that are financial products in omnibus accounts, subject to appropriate record-keeping arrangements and reconciliation procedures.

This relief was foreshadowed by Information Sheet 225 Digital assets: Financial Products and Services and follows ASIC’s consideration of submissions made in response to Simple Consultation 32 Proposed relief for certain stablecoins and wrapped tokens, and extension of omnibus accounts for digital asset custody, both of which are discussed in this edition. 

In response to the submissions, ASIC expanded eligible stablecoins and wrapped tokens to include those where issuers have applied for a licence to issue the financial product. 

ASIC issues final warning for urgent action from financial advice industry

On 1 December, ASIC issued a reminder that financial advisers who are existing providers and intend to provide personal advice to retail clients about relevant financial products after 31 December 2025 are running out of time to:

• ensure they meet the education and training requirements;
• review the accuracy of their information recorded on the Financial Advisers Register; and
• ask their AFS licensee to notify ASIC of their qualifications or, if eligible, that they are relying on the experienced provider pathway.

For relevant providers who are also existing providers and do not meet the qualifications standard by 1 January 2026, ASIC states their AFS licensee should consider ceasing their authorisation on or before 31 December 2025 to avoid consequences to the existing provider status.

ASIC proposes updates to guidance on advertising financial products and services

On 27 November, ASIC announced it is seeking stakeholder feedback on proposed updates to Regulatory Guide 234 Advertising financial products and services (including credit): Good practice guidance (RG 234) via Simple Consultation 37 Proposed update to ASIC’s guidance on advertising financial products and services (CS 37). You can read more in our recent article ASIC updates guidance on advertising financial products.

RG 234 provides guidance to help relevant entities (such as promoters of financial products, financial advice services, credit products and credit services, and publishers of advertising for these products and services) comply with their legal obligations not to make false or misleading statements or engage in misleading or deceptive conduct. 

The updates proposed in CS 37 are intended to ensure the currency and clarity of the guidance. Key changes include: 

• simplifying and streamlining the guidance;
• providing guidance reflecting relevant enforcement and regulatory action undertaken by ASIC since the initial publication of RG 234 in 2012; and
• incorporating guidance from Regulatory Guide 53 The use of past performance in promotional material which can then potentially be withdrawn. 

The consultation period closes at 5pm AEDT on 22 January 2026.

ASIC announces approach to regulation of employee redundancy funds

On 26 November, ASIC announced it has outlined its approach to the regulation of employee redundancy funds under the Corporations Act. 

ASIC determined that operators of employee redundancy funds and long service leave funds will be required to apply for an AFSL by 1 September 2026 and comply with some managed investment provisions of the Corporations Act (subject to transitional relief). 

The decision follows ASIC’s consideration of 19 submissions received in response to Consultation Paper 384 Employee redundancy funds which we discussed in Issue 102. 

ASIC will release further information regarding its decision in early 2026. 

ASIC proposes to remake relief for fundraising and mergers and acquisitions

On 24 November, ASIC announced it is seeking feedback on its proposal to remake 18 sunsetting legislative instruments which provide miscellaneous relief from Chs 6, 6C, 6D and Pt 7.9 of the Corporations Act via Simple consultation 36 Proposed remake of relief for fundraising and mergers and acquisitions (CS 36).

ASIC states the changes proposed in CS 36 are intended to ensure the relevant fundraising and mergers and acquisitions provisions of the Corporations Act continue to operate efficiently and effectively. 

The consultation period closes at 5pm AEDT on 19 December 2025.

ASIC announces 2026 enforcement priorities

On 13 November, ASIC announced its enforcement priorities for 2026. 

ASIC’s new enforcement priorities are: 

• misleading pricing practices impacting cost of living for Australians;
• poor private credit practices;
• financial reporting misconduct (including failure to lodge financial reports);
• claims and complaint handling failures by insurers; and
• the collapse of the Shield and First Guardian Master Funds. 

Their continuing enforcement priorities are: 

• insider trading conduct;
• misconduct exploiting consumers facing financial difficulty (including predatory credit practices);
• unlawful practices seeking to evade small business creditors;
• super trustees’ member services failures; and
• auditor misconduct. 

ASIC says these priorities have been designed to protect consumers from financial harm and uphold the integrity of Australia’s financial markets. 

ASIC’s enduring priorities also remain, including:

• protecting First Nations and vulnerable consumers;
• upholding market integrity;
• acting against systemic failures; and
• ensuring a fair, strong, and efficient financial system for all Australians. 

ASIC said they are working to increase their enforcement action by doing more investigations, taking more matters to court, increasing criminal prosecutions, and securing more penalties. 

Some key enforcement outcomes for ASIC over the past year include: 

• proposing $240 million in combined penalties against ANZ;
• filing proceedings against Macquarie and accepting a court enforceable undertaking to repay $320 million to affected Shield Master Fund investors; and
• securing a 14-year prison sentence for West Australian fraudster Chris Marco.

For more information about ASIC’s 2026 enforcement priorities see ASIC’s website and our recent article, ASIC announces 2026 enforcement priorities: focus on private credit and market integrity. 

ASIC updates on key licensing and professional registration activities

On 10 November, ASIC announced it has released Report 825 Licensing and professional registration activities: 2025 update (Report). 

The Report seeks to update AFS and credit licensees, and provides information about:

• new licensing application systems and processes;
• licensing and registration from the 2024-25 financial year;
• current and emerging licensing issues in relation to regulation of digital assets: and
• various proposed reforms to the AFSL regime.

ASIC issues new regulatory guide for exchange-traded product issuers

On 7 November, ASIC announced it published Regulatory Guide 282 Exchange traded products (RG 282), a new regulatory guide consolidating information about the treatment of exchange-traded products (ETPs) (including exchange-traded funds) by incorporating information from the following: 

• Information Sheet 230 Exchange traded products: Admission guidelines, which has now been withdrawn; 

• Report 583 Review of exchange traded products; and 

• Report 282 Regulation of exchange traded funds. 

The guide explains:

• key legislative instruments;
• regulatory relief;
• the general obligations that apply to ETP issuers (eg AFS licensing requirements and modified design and distribution obligations);
• specific obligations under market operator rules governing the admission and quotation of ETPs (eg portfolio disclosure requirements, product naming considerations, and liquidity and market-making arrangements); and
• the general obligations applying to market operators that admit ETPs (eg portfolio disclosures, liquidity provisions and market-making matters). 

ASIC proposes to remake ‘sunsetting’ legislative instrument about generic financial calculators

On 3 November, ASIC announced it is seeking feedback on its proposal to remake ASIC Corporations (Generic Calculators) Instrument 2016/207 (Instrument) via Simple Consultation 34 Proposed remake of generic financial calculators instrument (CS 34). 

The Instrument gives relief to providers of generic financial calculators from certain licensing requirements in the Corporations Act and is scheduled to sunset on 1 April 2026.

The consultation period closed at 5pm AEDT on 1 December 2025. 

ASIC highlights financial reporting and audit findings for FY 2024–25 as part of expanded program of work

On 31 October, ASIC announced the release of Report 819 ASIC's oversight of financial reporting and audit 2024–25 (Report).

The Report outlines: 

• ASIC’s findings from its company financial reporting and audit surveillances or the 12 months to 30 June 2025;
• enforcement and compliance actions against registered company auditors;
• outcomes relating to company financial reports; and
• observations on auditor and voluntary sustainability reporting.

The Report follows Report 816 Accounting for your super: ASIC's review into the financial reporting and audit of super funds and Report 817 Building trust: Auditor compliance with independence and conflict of interest obligations. 

ASIC said it will continue the financial reporting and audit surveillance program in 2025-26. 

ASIC launches new breach data dashboard

On 31 October, ASIC announced the launch of the Reportable Situations Data Dashboard (dashboard). 

The dashboard allows Australians to access data about reported breaches of the law by AFS and credit licensees. Specifically, it will provide granular information about: 

• the volume and nature of breaches;
• customer impact and loss;
• investigation and rectification of breaches; and
• customer compensation and remediation. 

The implementation of the dashboard follows ASIC’s consideration of 47 submissions received in response to CP 383 Reportable situations and internal dispute resolution data publication, which we discussed previously in Financial Services in Focus Issue 101. 

Treasury announces independent review of the Enhanced Regulatory Sandbox

On 31 October, Treasury announced the terms of reference for its independent review of the Enhanced Regulatory Sandbox (ERS) which commenced in mid-November 2025. 

Introduced in 2020, the ERS allows individuals or businesses to test innovative financial services or credit activities. 

The terms of reference outline the independent review’s:

• context;
• scope;
• governance;
• resources; and
• deliverables.

Treasury will give a final report to government in mid‑May 2026.

ASIC released final update to digital assets guidance 

On 29 October, ASIC announced the final update to Information Sheet 225 Digital assets: Financial Products and Services (INFO 225). The updated guidance clarifies how existing laws apply to digital assets, giving investors improved protections and providing firms with greater regulatory certainty to operate and innovate confidently in Australia.

The update follows consideration of submissions received in response to Consultation Paper 381 Updates to INFO 225: Digital Assets: Financial Products and Services. It marks the fourth update to INFO 255 since its initial publication in September 2017. 

Stablecoins, wrapped tokens, tokenised securities, and digital asset wallets are among the digital asset products ASIC considers to be financial products in its updated guidance.

In addition to releasing the updated guidance, ASIC also confirmed transitional support ahead of proposed law reforms. In recognition of the fact that firms will need time to consider the updated guidance and apply for licences, ASIC has granted a sector-wide no-action position until 30 June 2026. 

ASIC has granted regulatory relief for distributors of certain stablecoins and wrapped tokens, and certain relief for custodians of digital assets that are financial products (see above). 

For further information, please see our article ASIC issues long awaited guidance on digital assets and transitional relief for existing providers and ASIC’s website. 

On 29 October, AFCA issued a media release welcoming ASIC’s updated digital assets guidance. 

ASIC proposes to remake derivative clearing rules

On 28 October, ASIC announced it is seeking feedback on its proposal to remake the ASIC Derivative Transaction Rules (Clearing) 2015 (Rules) via Simple Consultation 33 Proposed remake of the ASIC Derivative Transaction Rules (Clearing) 2015 (CS 33). 

The Rules support the continued operation of Australia’s over the counter derivatives central clearing regime and are scheduled to sunset on 1 April 2026. 

The consultation period closed at 5pm AEDT on 28 November 2025. 

APRA refines proposals to facilitate easier access to alternative reinsurance arrangements

On 22 October, APRA released a response paper outlining 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.

The paper addresses industry feedback and outlines APRA’s revised approach, building on proposals from a consultation that commenced in November 2024.

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

APRA publishes new report on financial system risks 

On 20 November, APRA released a new System Risk Outlook report on its assessment of risks and vulnerabilities facing the Australian financial system.

The new report, which will be published biannually, increases transparency around what APRA is seeing in the domestic and international risk environments to inform its regulatory priorities.

Key insights from this first publication include:

• Risks to the Australian financial system from overseas are heightened, and the geopolitical environment is expected to remain volatile for some time.  While the system is well-placed to absorb potential shocks from overseas, this resilience could be eroded if institutions are not prepared for a wide range of scenarios. APRA and the other agencies on the Council of Financial Regulators are strengthening the system’s resilience through a dedicated geopolitical risk work program;
• APRA is closely monitoring any build-up of domestic vulnerabilities, particularly in the housing market, including high household debt. While overall housing lending standards remain sound, APRA is seeing some signs of a pick-up in higher risk lending, particularly high debt-to-income borrowing by investors; and
• The increasing interconnectedness of the financial system has elevated the potential for shocks in one sector to have a system-wide impact. 

ASIC releases a roadmap for capital markets to grow our economy

On 5 November, ASIC released REP 823 Advancing Australia’s evolving capital markets: Discussion paper response (Report). 

The Report 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. It assesses fundamental questions about the future state of Australia’s public and private markets, the risks and opportunities for productivity within them and the part ASIC will continue to play.

The Report draws on: 

• critical findings from REP 820 Private credit surveillance report: Retail and wholesale surveillance, ASIC’s new surveillance into the private credit sector;
• private credit expert insights from REP 814 Private Credit in Australia;
• consideration of submissions received in response to Discussion paper Australia’s evolving capital markets: A discussion paper on the dynamics between public and private markets; and 

• expert insights from REP 822 Australia’s capital markets: Forces shaping the next decade and REP 821 Private capital market reporting: Global practices and lessons. 

The Report details:

• the choices and future of Australia’s markets;
• ASIC’s work to streamline IPOs and disclosure requirements;
• the need for market operators and government to closely consider director responsibilities, free float requirements and facilitating more foreign listings;
• 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;
• the role private credit is playing in Australia’s financial system; and
• clear principles, grounded in the law, for private markets to lift practices to promote confident and informed participation by investors and borrowers. 

ASIC said it will issue more regulatory guidance in relation to private credit and will continue its surveillance and enforcement work in private credit to ensure compliance with the law. 

On 5 November, the Financial Services Council and ASX both issued media releases welcoming ASIC’s capital markets roadmap. 

You can read more about this in our recent articles Shifting dynamics in Australia’s capital markets: private credit and public market trends and ASIC reveals private credit market red flags.

ASX seeks feedback on Amendment to Listing Rule 17.5 

On 31 October, ASX released its consultation paper Amendment to Listing Rule 17.5. The proposed amendment which the ASX is consulting on is intended to preserve the current status quo following changes to the Corporations Act. 

Currently, Listing Rule 17.5 provides that trading in a listed entity’s securities will be suspended if the entity fails to lodge the annual reporting documents required under Listing Rule 4.5 by the due date.

The Corporations Act was recently amended to require some entities to prepare annual sustainability reports. 

This amendment to the Corporations Act has the flow on effect that the scope of Listing Rule 17.5 is expanded to require suspension of the securities of listed entities that lodge their sustainability report after the due date (to the extent that they are required to prepare those reports under the new Corporations Act requirements).

The proposed amendment to Listing Rule 17.5 would therefore have the effect that late lodgement of an annual sustainability report will not result in mandatory suspension. 

The consultation period closed on Friday 28 November 2025.  

APRA to consult on targeted changes to CPS 230 for non-traditional service providers

On 31 October, APRA announced it will consult on targeted amendments to CPS 230 Operational Risk Management (CPS 230) by the end of 2025. This follows industry feedback highlighting challenges when applying the new standard’s contractual obligations to arrangements with non-traditional service providers (NTSPs).

NTSPs are providers that are typically market-mandated, such as stock exchanges, payment schemes, or clearing and settlement facilities. Arrangements with these providers often lack formal contracts or rely on standardised, non-negotiable terms.

The proposed amendments will clarify APRA’s expectations for arrangements with NTSPs, particularly around contract uplift and service level monitoring. All other risk obligations under CPS 230 will remain unchanged.

APRA will run an accelerated policy process, including a one-month consultation period, to finalise the targeted changes before 1 July 2026, ensuring a smooth transition and regulatory balance.

Payments System Board Update: November 2025 Meeting

The RBA Payments System Board met on 26 November to review key developments, including:

• progress on crisis resolution powers for clearing and settlement facilities, with guidance due in December; 

• feedback on merchant card payment costs and surcharging, with conclusions expected by March 2026; and 

• planned mid-2026 consultation on amendments to the Payment Systems (Regulation) Act covering mobile wallets, BNPL, and e-commerce platforms. 

AFCA cautions against unregulated lending

On 14 November, AFCA urged small business owners to consider the risks of dealing with lenders that are not members of AFCA.

The warning comes as small business complaints reach a record high, with small businesses making 4,648 complaints to AFCA in the last financial year, a rise of 4 per cent following a record high in the previous financial year.

APRA proposes more accessible pathway to IRB accreditation for banks

On 23 October, APRA released a consultation paper proposing a simpler, clearer and more streamlined pathway for banks to become accredited to use the internal ratings-based (IRB) approach to calculating credit risk-weighted assets.

Noting that some medium-sized banks have expressed interest in obtaining IRB accreditation, APRA is seeking to make the pathway to IRB accreditation more accessible for these banks.

ATO returns over $1 billion in unpaid super to employees

On 8 December, the ATO released new data revealing $1.1 billion in unpaid super was returned to nearly one million individual’s super funds in 2024–25.

Deputy Commissioner Ben Kelly said the latest figures show the ATO’s compliance efforts to protect employee’s super entitlements are continuing to pay dividends.

In the past year, the ATO took more than 20,000 firmer actions against employers who failed to pay the super guarantee charge owing, this included issuing director penalty notices and garnishees and taking legal action where necessary. There are strong consequences for employers that deliberately don’t comply with their SG obligations.

ASIC updates guidance on Product Disclosure Statements

On 3 December, ASIC released updated Regulatory Guide 168 Product Disclosure Statements: Disclosure and other obligations(RG 168). 

The update to RG 168 follows ASIC’s consideration of submissions made in response to Consultation 22: Proposed update to ASIC’s guidance on Product Disclosure Statements.

The updates to RG 168: 

• provide clarity and improve industry’s ability to prepare PDSs; 

• incorporate guidance from other regulatory guides which are to be withdrawn; 

• make references to useful ASIC relief instruments;

• update guidance on compliance risks and considerations for PDSs to clarify what happens if the PDS requirements are not met; and 

• update Appendix 1. 

ASIC calls for feedback on stamp duty and portfolio holdings disclosure requirements for super funds

On 28 November, ASIC announced it is seeking feedback on proposed changes to stamp duty (via CS 39 Proposal to amend stamp duty disclosure requirements) and portfolio holdings disclosure requirements (via CS 38 Proposed relief for disclosure of private debt arrangements). 

ASIC is firstly proposing that stamp duty be disclosed as an average amount over seven years, rather than an annual sum, in fees and costs summaries, which would require a change to ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070. 

It is also proposing class order relief for superannuation trustees, aligning portfolio holdings disclosure obligations for internally managed private debt with externally managed private debt. 

The consultation period closes at 5.00 pm AEDT on 20 February 2026.

On 28 November, the Financial Services Council issued a media release welcoming ASIC’s consultation on the treatment of stamp duty. 

Super trustees urged to accelerate progress on retirement support for members

On 26 November, ASIC and APRA jointly released REP 826 Industry update: 2025 Pulse Check on retirement income covenant implementation (Report). 

The Report summarises responses to a voluntary survey issued to registrable superannuation entity licensees and in turn assesses the progress trustees have made in developing retirement income strategies for Australians approaching or in retirement in accordance with their retirement income covenant obligations under the Supervision Superannuation Industry (Supervision) Act 1993. 

It reveals that despite these obligations being introduced over three years ago on 1 July 2022, the gap is widening between trustees who are actively promoting better retirement outcomes for their members and those that are not. 

ASIC and APRA again call on all trustees to focus on improving retirement outcomes for their members and take steps to meet the better practice recommendations made in the report. 

ASIC and APRA will be providing individual feedback to trustees.

ASIC extends disclosure and reporting relief for super trustees

On 20 November, ASIC announced a three-year extension to the relief provided for superannuation trustees under ASIC Superannuation (Disclosure and Reporting Consistency Obligations) Instrument 2023/941.

The extension ensures trustees remain exempt from public disclosure and APRA reporting requirements under subsection 29QC(1) of the Superannuation Industry (Supervision) Act 1993. 

The decision follows a temporary extension, which we discussed in Financial Services in Focus Issue 89. 

The extension will be delivered through ASIC Superannuation (Amendment) Instrument 2025/449.

FSC issues reminder regarding the superannuation industry’s fight against cyber and financial crime 

On 10 November, FSC reminded consumers that the superannuation industry continues to band together to fight against cyber criminals and scammers, affirming its commitment with two cross-industry forums that foster collaboration, share critical threat intelligence, and drive action to better protect consumers data and financial security.

The Australian Superannuation Cyber Security Forum and Scam and Fraud Prevention Exchange are open to membership, at no cost, to senior cyber and financial crime staff from both FSC and non-FSC member superannuation funds, as well as administrators and ecosystem participants. 

FSC also updated FSC Standard No. 29 Fraud and Scam Mitigation Measures for Superannuation Funds (Standard). 

The Standard was changed to make it more robust and future proof and brought up the deadline for having full coverage of multifactor authentication on high-risk transactions to 1 August 2025. 

For our discussion of the first edition of the Standard, see Financial Services in Focus Issue 95. 

ASIC review raises fresh concerns over risks to retirement savings from poor SMSF advice

On 6 November, ASIC released REP 824 Review of SMSF establishment advice (Report). 

The Report is a risk-based review of 100 retail client financial advice files relating to the establishment of SMSFs. It outlines ASIC’s assessment of the quality and legal compliance of personal advice provided, and the role, policies and procedures of advice licensees in providing SMSF establishment advice by their financial advisers. 

ASIC undertook the review to better understand why some retail clients were advised to establish a SMSF even though it was not suitable or beneficial for them and could adversely affect their retirement outcomes.

Key findings from the Report include: 

• poor financial advice related to the establishment of SMSFs could be putting some Australians’ retirement savings at risk;
• 62 files failed to demonstrate compliance with the best interests duty;
• 27 files raised significant concerns about client detriment relating to recommendations to set up an SMSF;
• only 38 files demonstrated compliance with the longstanding obligation for advisers to act in clients’ best interests;
• despite licensees requiring advice to be pre-vetted before reaching clients, non-compliant advice continued to slip through the cracks; and
• while all licensees had policies managing conflicts of interest, in 24 of the 27 client files that raised concerns about client detriment, ASIC was concerned the financial adviser failed to prioritise the interests of the client above their own interests or that of their advice licensee or an associate. 

ASIC states that financial advisers and advice licensees should use the findings, examples, action points and risk indicators in the report to improve the quality of their SMSF establishment advice, identify circumstances where an SMSF should not be recommended and detect misconduct.

New legislation passes to ensure super is paid on time

On 4 November, the ATO announced that Labor’s new ‘Payday Super’ legislation passed Parliament. 

The new legislation will:

• require employers to ensure super contributions are received by the employee’s fund within seven business days of payday, or they will be liable for the superannuation guarantee charge (SGC);

• help the ATO enforce the law and more quickly identify employers not making contributions; and

• redesign the SGC to be fit for purpose and make Payday Super work.

The ATO is consulting on its approach to compliance for the 12 months after the change starts. The ATO’s approach will differentiate between low and high-risk employers. This approach will mean employers who are making the effort to pay contributions in line with each pay cycle can fall into the low-risk category.

The new legislation will take effect from 1 July 2026.

APRA refines proposed changes to the capital framework of longevity products

On 29 October, APRA announced it has commenced a second round of consultation on modifications to its capital framework for longevity products, including annuities. The changes are designed to create an environment that supports the development and availability of longevity products for Australian retirees, while safeguarding policyholder interests.

In June 2025, APRA released a consultation inviting industry feedback on proposed changes to the life insurance capital framework. The responses have informed refinement of the proposals, including a shift towards a more principles-based approach for determining capital requirements.

The updated proposals align with APRA’s commitment to regulatory balance, which means to promote financial system safety and stability in an efficient way. The initiative aims to support a resilient and innovative insurance sector by facilitating the growth and competitive pricing of longevity products.  

ASIC extends transitional relief for foreign financial services providers

On 5 December, ASIC announced it has extended the transitional relief for foreign financial services providers (FFSPs) by an additional 12 months. 

The Australian Government introduced legislation for a new licensing exemption regime for FFSPs under the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025 (the Bill), where a new ‘comparable regulator’ exemption is proposed. The new regime is due to commence 12 months after the Bill receives Royal Assent. With this extension, the transitional relief will remain in place until 31 March 2027.

For more comprehensive details about the proposed new licensing exemption regime, please see our latest article.

ASIC expands email lodgements

On 4 December, ASIC announced it has transitioned an additional 35 paper-only forms to email lodgement.  

The change aims to help streamline interactions and reduce administrative burden for those needing to comply with their obligations and follows ASIC’s Regulatory Simplification Report. 

For the complete list of forms that can be lodged by email, see ASIC’s website. 

ASIC also now accepts electronic signatures on approved PDF forms, including those enabled for email lodgement.

ASIC proposes to remake relief instruments for AFS licensees and overseas banks

On 4 December, ASIC announced it is seeking feedback through Simple Consultation 40 Proposed remake of relief instruments for AFS licensees and overseas banks (CS 40). 

CS 40 proposes to remake ASIC Corporations (Foreign Licensees and ADIs) Instrument 2016/186 and ASIC Corporations (Licence Conditions—Treatment of Lease Assets) Instrument 2021/229 (Instrument 2021/229) which are due to sunset on 1 April 2026 and automatically repeal on 1 May 2026 respectively.

Instrument 2016/186 exempts foreign licensees from certain record keeping and financial statements obligations under the Corporations Act, and foreign authorised deposit-taking institutions from the requirement to hold an AFS licence when dealing in derivatives and foreign exchange contracts on their own behalf.

ASIC Instrument 2021/229 specifies that a right-of-use asset under a lease is not an excluded asset for the purposes of an AFS licensee’s general duty to comply with its licence conditions. This allows certain AFS licensees when calculating their financial resource requirements to include a right-of-use asset under a lease in the calculation of their net tangible assets and, where applicable, adjusted surplus liquid funds and surplus liquid funds.

The relief provided under the instruments will remain largely unchanged. 

The consultation period ends at 5.00 pm AEDT on Friday 23 January 2026.

ASIC proposes to remake instruments for technical relief and prescribed credit disclosure

On 4 December, ASIC announced it is seeking feedback through Simple Consultation 41 Proposed remake of miscellaneous technical relief and updated credit disclosure instruments (CS 41). 

CS 41 proposes to remake two legislative instruments, ASIC Corporations (Miscellaneous Technical Relief) Instrument 2015/1115 (Instrument 2015/1115), and ASIC Credit (Updated details for prescribed disclosure) Instrument 2016/200 (Instrument 2016/200), which are due to sunset on 1 April 2026.

Instrument 2015/1115 provides technical relief relating to AFS licensees and persons providing financial services on their behalf and will be remade without substantial change other than amendments to ensure the instrument is up to date. 

Instrument 2016/200 makes minor updates to certain prescribed credit disclosures. 

ASIC proposes to remake the relief in paragraph 5(a) of the Instrument 2016/200 but not paragraphs 5(b) and (c) as the regulations to which those paragraphs relate have been repealed. 

The consultation period closes at 5.00 pm AEDT on Friday 23 January 2026.

ASIC issues updated guidance on digital disclosures

On 3 December, ASIC announced the release of updated Regulatory Guide 221 Facilitating digital financial services disclosures (RG 221). 

The updates follow ASIC’s consideration of submissions made in response to CS 23 Proposals to continue to facilitate digital disclosure. 

The updates amend outdated references and set out ASIC’s expectations in relation to digital disclosures.

ASIC issues updated guidance for industry codes of conduct

On 2 December, ASIC released updates to Regulatory Guide 183 Codes of conduct for the financial services and credit sectors (RG 183). 

The updates follow ASIC’s consideration of submissions in response to Consultation Statement 26 Proposed update to RG 183. 

The updates to RG 183: 

• reflect legislative reform since the guidance was last updated in 2013;
• clarify ASIC’s role in relation to industry codes, and the criteria and process for code approval; and
• simplify and streamline the guidance.

ASIC publishes updated IDR data reporting handbook

On 1 December, ASIC released an update to the Internal Dispute Resolution data reporting handbook (handbook) to reflect recent legislative and regulatory changes in the buy now, pay later and digital asset sectors.

The handbook includes a new product category for mutual risk products to enhance the accuracy of complaint reports. 

ASIC says financial firms should familiarise themselves with the changes to ensure they are recording complaints in accordance with the updates for the July to August 2026 submission window, which covers complaints open or received between 1 January and 30 June 2026.

For the updated handbook and an overview of the changes see ASIC’s website. 

AFCA publishes Rules amendments

On 28 November, AFCA announced upcoming changes to the AFCA Complaint Resolution Scheme Rules (Rules).

Changes to the Rules include: 

• expanded jurisdiction to consider complaints involving receiving banks and mule accounts in scam complaints;
• stronger oversight of paid representatives, including mandatory use of AFCA’s consumer portal;
• ability to publish the names of financial firms that fail to comply with AFCA Determinations; and
• removal of Section F, which related to legacy complaints.

ASIC has formally approved these proposed changes, with the new iteration of the Rules coming into effect on 12 March 2026. 

The changes follow AFCA’s consideration of submissions provided in response to their call for stakeholder consultation. 

For the Consultation Response Paper, all non-confidential submissions, and marked-up versions of the updated Rules see AFCA’s website. 

Treasury invites feedback on Scams Prevention Framework - Draft law package and position paper

On 28 November, Treasury commenced consultation on draft instruments to implement the Scams Prevention Framework (SPF).

The consultation package includes:

• a draft instrument to designate banks, telecommunication providers and certain digital platforms under the SPF;

• a draft instrument to authorise AFCA to be the SPF’s external dispute resolution scheme;

• explanatory statements for the draft instruments;

• targeted questions for the draft instruments; and

• a position paper that outlines early thinking on the sector codes and rules.

Industry feedback closes on 5 January 2026. 

APRA releases response to minor framework updates for ADIs, insurers and RSE licensees

On 21 November, APRA released a response to consultation on proposed minor amendments to the prudential and reporting framework for authorised deposit-taking institutions, insurers and registrable superannuation entity licensees.

The response letter issued today follows the release of the proposed update for consultation in September 2025. These minor updates help APRA keep the prudential framework up to date between comprehensive reviews.

The letter to industry, finalised prudential and reporting standards and non-confidential submissions are available on the APRA website at Minor updates to the prudential framework.

AFCA publishes latest edition of its Systemic Issues Insights Report

On 20 November, AFCA published the latest edition of its Systemic Issues Insights Report (Report). 

The Report reveals that more than 342,000 consumers and small businesses were protected through AFCA’s systemic issue investigations in the past six months.

Between April to September 2025, AFCA conducted 86 in-depth investigations into systemic issues, leading to 50 matters being reported to regulators and over $3.4 million in refunds and remediation for affected customers. Beyond financial redress, these investigations led to meaningful non-financial outcomes for consumers, including corrections to credit files, clearer disclosure documents, and stronger complaint handling and product governance practices.

The Report identifies recurring challenges for the financial services industry, including:

• weaknesses in complaint handling and IDR/EDR processes;
• gaps in supporting vulnerable customers and hardship recognition;
• legacy systems and data integrity failures; and
• policy vs practice gaps in disclosure and product suitability.

Treasury releases working paper on tracking mergers and acquisitions using Australian administrative data

On 12 November, Treasury released a working paper which explore a range of methods to build a database of Australian mergers and acquisitions.

Using their database, the authors found that:

• there are around 1,500 mergers each year in Australia;
• the firms most likely to be targets are mid-sized, high-profit but low-productivity;
• firms with a lot of patents are also likely to be targets;
• large firms with trademarks are most likely to be acquirers; and
• there are serial acquisitions taking place in several industries.

Foreign investment framework reforms – discussion paper

On 31 October, Treasury released a discussion paper on developing legislative reforms to further streamline and strengthen the investment framework.

Reforms will seek to ensure Australia remains an attractive destination for global capital, while managing new and evolving risks to the national interest and national security in an increasingly challenging international security environment.

The discussion paper seeks stakeholder views on emerging issues and invites feedback on the government’s policy objectives and proposed options to continue the government’s foreign investment streamlining and strengthening agenda by 12 December.

FSC welcomes Government commitment to modernise foreign investment framework

On 31 October, FSC announced that it welcomed the Government’s commitment to streamline the foreign investment framework, which will reduce unnecessary red tape for trusted institutions engaging in lower risk investment activity, while focusing scrutiny for higher-risk transactions.

The FSC said it will work with the Government to ensure the reforms reflect a sensible shift toward a more risk-based approach that supports investment flows into Australia whilst maintaining important national interest safeguards.

Treasury releases draft legislation on External Reporting Australia

On 30 October, Treasury opened feedback to draft legislation that combines the Australian Accounting Standards Board, the Auditing and Assurance Standards Board, and Financial Reporting Council into a single body called External Reporting Australia.

The draft legislation sets up:

• the single body's structure;
• governance, administrative and procedural arrangements;
• dedicated technical boards to make standards for accounting, auditing and assurance, and sustainability;
• other functions and powers of the body; and
• transitional arrangements.

Industry feedback on the draft legislation closed on 27 November 2025.

ASIC releases payment systems modernisation - draft regulations

On 24 October, Treasury announced it was inviting feedback on the Payment Systems Legislation Amendment (2025 Measures No. 1) Regulations 2025 (Regulations) and Explanatory Statement.

They support the Treasury Laws Amendment (Payments System Modernisation) Act 2025 which recently passed Parliament.

The draft Regulations amend the:

• Payments Systems (Regulation) Regulations 2006;

• Australian Securities and Investments Commission Regulations 2001;

• Corporations Regulations.

Submissions closed on 11 November 2025. 

APRA revises governance proposals following industry consultation

On 24 October, APRA released an update on its consultation to modernise the prudential framework on governance for banks, insurers and superannuation trustees.

In March, APRA proposed eight measures to update its cross-industry prudential standards and guidance on governance for the first time in more than a decade.

During the three-month consultation period, APRA held 57 meetings and roundtables involving over 150 stakeholder organisations and received almost 80 written submissions. Through these engagements, APRA received broad support for the package overall, especially for initiatives that can reduce burden and address regulatory overlap. However, there was also caution around the potential impact of some proposals.

Having carefully considered this feedback, APRA has written to industry advising it will modify three of its original proposals to ensure they don’t impose undue regulatory constraint on boards:

• instead of a tenure limit for non-executive directors of 10 years with the possibility of a two-year extension, APRA now proposes a hard tenure limit of 12 years with short extensions in limited circumstances;

• a proposal for banks and insurers to have at least two independent directors (including the chair) not on other group boards will not proceed as originally proposed;

• a proposal to require significant financial institutions to engage early with APRA on responsible person appointments and succession planning will also not proceed.