Financial Services in Focus – Issue 108

ASIC consults on changes to net tangible assets requirement for responsible entities

On 18 March, ASIC announced it is seeking feedback on increasing the net tangible assets (NTA) requirement for responsible entities of registered managed investment schemes.

Consultation Paper 388 Net tangible assets requirement for responsible entities (CP 388) proposes changes to the current NTA requirement set out in ASIC Corporations (Financial Requirements for Responsible Entities, IDPS Operators and Corporate Directors of Retail CCIVs) Instrument 2023/647.

The NTA requirement aims to:

• align the fund operator’s interests with member interests;
• ensure the fund can meet its operating costs;
• ensure money is available to transition the scheme if it fails.

ASIC is also seeking feedback on:

• increasing the NTA requirements that apply to other fund operators – operators of investor directed portfolio services and corporate directors of retail corporate collective investment schemes; and
• the NTA requirements for other categories of licensees (as this will inform future ASIC work).

You can read more in our recent article What ASIC’s consultation on NTA requirements means for fund managers. 

The consultation period closes at 5pm AEDT on 17 April 2026. 

Treasury consults on Tranche 1 draft legislation for the regulation of payment of service providers

On 12 March, Treasury released the full package of the draft legislation on the new regulatory framework for payment service providers. They are seeking feedback on the full package of draft Tranche 1 legislation, which covers: 

• definitions of regulated payment functions;
• licensing obligations, including how certain providers must safeguard payment-related money;
• exemptions and exclusions;
• rules for unclaimed monies;
• a new prudential framework;
• a power to make rules for a mandatory and revised ePayments Code; and
• transitional arrangements. 

You can read more in our recent article Major overhaul of Australia’s payment system regulation: key changes and timeline. 

The consultation period closes at 5.00 pm AEDT on 9 April 2026. 

ASIC consults on proposals to support transparency on ownership and control of listed entities

On 10 March, ASIC announced it is consulting on proposals to enhance corporate transparency by increasing investor visibility of who ultimately owns or controls entities listed on Australian financial markets.  

The proposals, contained in Consultation Paper 387 Enhanced beneficial ownership disclosure–Proposed legislative instrument, form and guidance (CP 387) include the following:

• a new legislative instrument (draft ASIC Corporations (Listed Enhancements Beneficial Ownership Disclosure) Instrument 2026/XX);
• a new ‘Substantial Holding Notice’; and
• amendments to the following regulatory guides:
  • Regulatory Guide 5 Relevant interests and substantial holding notices (RG 5);
  • Regulatory Guide 9 Takeover bids (RG 9); and
  • Regulatory Guide 222 Substantial holding disclosure: Securities lending and prime broking (RG 222).

The proposals push for:

• more accurate due diligence for prospective acquisitions;
• the improvement of market conditions for investment decisions; and
• an increase visibility when someone may be seeking greater influence over a listed company by building positions, including through derivative exposures over securities in the company.

The proposals are a response to the reforms listed in Schedule 1 of the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Act 2025. Schedule 1 has improved transparency of ownership and control of listed entities by: 

• broadening market disclosures to better capture interests arising through equity derivatives; and
• strengthening existing substantial holding and tracing notice regimes that govern the disclosure of interests in listed entities.

The consultation period for these proposals closes at 5.00 pm AEST on 21 April 2026. 

ASIC also proposes to make consequential updates to other regulatory guidance and existing legislative instruments in response to the Schedule 1 reforms. These updates are considered technical and will not be consulted on.

ASIC eases PDS rules for residential strata insurance providers

On 11 March, ASIC announced ASIC Corporations (Strata Title Co-Insurance) Instrument 2026/156.  

Instrument 2026/156 contains new relief measures to make it easier for insurers to work together on residential strata insurance policies that are too large for a single insurer to cover. 

The primary relief measure is that when two or more insurers team up to provide cover for a single strata property, only the lead insurer will need to prepare a Product Disclosure Statement (PDS). The lead insurer will also prepare a supplementary PDS listing the involvement and share of the risk by any additional insurers involved (who will not need to prepare their own PDS). 

This approach aims to help insurers offer cover for high-value strata properties while also ensuring owners’ corporations (when classified as retail clients under the Corporations Act) still get the information they need about insurance arrangements. 

Whether an owners’ corporation qualifies as a retail client is determined on a case-by-case basis by insurers (and when relevant, brokers), considering whether the insurance is provided for use in connection with a ‘small business’ which will depend on a range of factors, including but not limited to profit motives and ability to generate a profit. 

Treasury consults on education reform for financial advisers

On 17 March, Treasury released a consultation paper seeking feedback on a new education standard for financial advisers. 

The proposed reforms aim to:

• expand the availability of high-quality and safe financial advice;
• streamline requirements to the current education standards;
• create more sustainable and flexible pathways for new advisers to enter the profession; and
• maintain strong professional safeguards. 

The consultation paper provides further information on the new education standard and seeks views on additional details regarding the education reforms, and implementation and transitional arrangements to support the reforms. 

Further, FSC announced that they welcome and support the consultation on implementing reforms to the education reforms to the education requirements for professional financial advisers. 

The consultation period closes on 17 April 2026. 

ASIC updates relief instrument for generic financial calculators

On 26 March, ASIC announced it had remade a legislative instrument which gives relief to providers of generic financial calculators from certain licensing requirements under the Corporations Act.

ASIC Corporations (Generic Calculators) Instrument 2026/41 continues relief provided under ASIC Corporations (Generic Calculators) Instrument 2016/207 until 1 April 2031. ASIC Instrument 2026/41 will give relief to providers of generic financial calculators from the requirement to hold an Australian financial services licence with an advice authorisation. This can help consumers understand their own financial situation or financial products they are considering.

ASIC has also announced that it will be making minor amendments to RG 167 AFS licensing: Discretionary powers, RG 276: Superannuation forecasts: Calculators and retirement estimates and INFO 248: Enhanced regulatory sandbox in April 2026.

ASIC proposes to remake relief for exchange-traded warrants

On 16 March, ASIC announced it is seeking feedback on its proposal to remake two sunsetting legislative instruments which provide relief related to exchange-traded warrants. 

The legislative instruments which ASIC proposes to remake are:

• ASIC Corporations (Margin Lending Relief for Exchange-Traded Instalment Warrants) Instrument 2021/194, which is due to sunset on 1 April 2026; and
• ASIC Corporations (Exchange-Traded Warrants) Instrument 2016/886, is due to sunset on 1 October 2026.

Instrument 2021/194 exempts certain types of exchange-traded instalment warrants from the margin lending obligations. Instrument 2016/886 exempts the secondary sales of warrants quoted on declared financial markets from the disclosure requirements ordinarily applying to the issue of financial products. 

ASIC proposes to remake the legislative instruments for a period of five years, with minor amendments, including:

• using market-neutral language;
• simplifying the definitions and rewording the exemption in draft instrument ASIC Corporations (Exchange-Traded Warrants) Instrument 2026/<Number> to improve its clarity; and
• removing definitions which are now contained in the Corporations Act.

The consultation period has closed. 

ASIC extends short selling relief for market makers in precious metal-backed exchange traded products

On 27 February, ASIC announced it has extended conditional short selling relief for appointed market makers to support liquidity in exchange-traded options (ETOs) listed over Global X Physical Gold Structured and specified structured products referencing precious metals. 

The relief extends existing market maker short selling relief for similar exchange traded products where settlement failure risk is low.

With effect from 3 February 2026, the ASIC Corporations (Amendment) Instrument 2026/24 amends the ASIC Corporations (Short Selling) Instrument 2018/745 to:

• allow market makers of specified structured products that reference precious metals to short sell these products during the course of market making on the same conditions that currently apply to ETF market makers;
• include Global X Physical Gold Structured as an approved product that an appointed ETO market maker can short sell to hedge risks arising from making a market in the listed option;
• extend the covered short sale transaction reporting relief for ETF market makers to also include market makers of specified structured products; and
• reflect current naming conventions for exchange traded products and use market neutral language.

AUSTRAC publishes guidance on use of new compulsory examination powers

On 5 March, AUSTRAC published Section 172A Examination powers guidance regarding AUSTRAC’s new compulsory examination powers, providing clear expectations for businesses and individuals about when and how the powers will be applied.

With the passing of the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (AML/CTF Amendment Act) in 2025, the new section 172A powers were introduced, establishing notices that require a person to attend an examination, answer questions and provide documents to AUSTRAC. 

The guidance sets out:

• what happens during an examination;
• the role of the examiner;
• how legal representatives may assist; and
• how information provided is handled. 

Government responds to inquiry on micro-competition opportunities in e-conveyancing

On 27 March, the Australian Government tabled its formal response to the Senate Economics References Committee inquiry on micro-competition opportunities in e-conveyancing. 

The Committee recommended APRA prioritise the auditing of banking institution compliance with Prudential Standard Cross-industry Prudential Standard 230 and publish a report of its findings in an e-conveyancing context by 30 June 2026. 

In acknowledging the importance of operational resilience across the financial system as well as APRA’s regulatory independence, the Government stated it will not be seeking to influence how APRA undertakes specific compliance activities within its area of regulatory responsibility. 

APRA will continue to supervise CPS 230 compliance through its established supervision program (2025–2028) and provide prudential insights to government where appropriate.

APRA consults on enhancements to bank capital and liquidity frameworks

On 16 March, APRA announced it will consult on a package of reforms relating to bank capital and liquidity settings, aiming to maintain the resilience of Australia’s financial system to ensure it can absorb shocks and respond to periods to turbulence as a response to heightened geopolitics and market volatility. 

APRA recently reviewed its liquidity and capital framework to ensure it remains fit-for-purpose.  APRA has identified ways to uplift its liquidity settings, while making the capital framework more risk sensitive. The proposals, which are designed to be cost neutral across the banking industry, include:

• changes to the liquidity framework and consideration of a new Pillar 2 liquidity framework to address risks not covered by existing liquidity coverage ratio minimum requirements for the largest banks;
• a more risk-sensitive liquidity framework for smaller banks to incentivise more robust practices and create more cost savings;
• implementing a simplified approach to the Basel Committee’s Fundamental Review of the Trading Book, to better reflect risks in Australia’s banking system and materially reduce compliance costs compared with full implementation; and
• amending the standardised capital framework to better align capital requirements with underlying risk to allow for a reduction in overall capital requirements by focusing on:
  • high-quality lending to critical infrastructure projects;
  • corporates without a credit rating; and
  • residential property development. 

APRA will consult on the package in stages, starting with consultation on the changes to standardised risk weights for credit risk in the first half of this year. 

AFCA expands jurisdiction for bank scam complaints

On 13 March, AFCA announced its jurisdiction for scam-related bank complaints has expanded. 

This change allows AFCA to look at the investigation of scam-related complaints involving receiving banks and unauthorised opening of accounts and credit facilities in a consumer’s name without their consent or authority, even where the consumer making the complaint is not a customer of that bank.

The Receiving Banks and Unauthorised Opening of Accounts factsheet provides guidance on timing, eligibility and processes for complaints under the expanded jurisdiction.

APRA and ATO address Payday Super readiness

On 25 March, APRA and the ATO issued a letter to registrable superannuation entity (RSE) licensees regarding the commencement of Payday Super on 1 July 2026.

The letter sets out the roles of the ATO and APRA in the implementation of Payday Super, the relevant regulations and standards to support Payday Super, and next steps to support RSE licensee implementation readiness by 1 July 2026.

ASIC extends intra-fund transfer relief for super trustees

On 24 March, ASIC announced it extended the intra-fund transfer relief provided for superannuation trustees by a period of five years, until 1 April 2031. ASIC Corporations (Intra-fund Transfers) Instrument 2026/688 continues the relief provided in ASIC Corporations (Superannuation: Accrued Default Amount and Intra-Fund Transfers) Instrument 2016/64, which is due to expire on 1 April 2026. 

Instrument 2016/64 exempted trustees of APRA-regulated superannuation funds that issue superannuation products during an intra-fund transfer from the application form requirements and cooling-off period requirements under the Corporations Act. 

Treasurer announces reforms for strengthening the retirement phase of superannuation

On 23 February, Hon Dr Jim Chalmers MP, Treasurer, released a joint release with Hon Dr Daniel Mulino MP, Assistant Treasurer and Minister for Financial Services announcing the release of the Retirement Reporting Framework and Best Practice Principles for Superannuation Retirement Income Solutions to reinforce that superannuation funds must actively engage members approaching and in retirement.

The reforms aim to:

• ensure there is as much of a policy and product focus on the retirement phase as there is on the accumulation phase;
• improve transparency and drive trustees to innovate and deliver better retirement solutions for their members; and
• help Australians retire with more confidence, knowing they have access to the right product solutions, information, and strategies to help them make the most of their superannuation.

The principles set out clear guidance for trustees and funds on the design and delivery of retirement income solutions by outlining the steps that can be taken to better understand and engage members on retirement income decisions. 

The principles work to: 

• reinforce that trustees are accountable for the quality of their engagement strategies;
• deliver retirement outcomes from funds that involve a high level of engagement and service for Australians; and
• strengthen accountability and provide a way for consumers, regulators and trustees themselves to assess the extent to which a trustee is providing a holistic retirement offering for their membership. 

The framework will collect data on industry progress in the retirement phase of superannuation 

Treasury consults on reforms for the reduction in tax concessions by building a stronger and fairer super system

On 17 March, Treasury announced it is seeking feedback on the Income Tax Assessment (1997 Act) Amendment (Building a Stronger and Fairer Super System and Other Measures) Regulations 2026 and explanatory material for the government’s Better Targeted Super Concessions policy.

The draft regulations relate to Treasury Laws Amendment (Building a Stronger and Fairer Super System) Act2026 and the Superannuation (Building a Stronger and Fairer Super System) Imposition Act 2026 (together, the Acts), which reduce tax concessions for people with total super balances over $3 million and impose new taxes under a new Division 296 of the Income Tax Assessment Act 1997.

The proposed regulations will support the Acts by setting out detailed rules on how the new tax will work, and specifically will: 

• explain how super funds will attribute fund earnings to individuals;
• set out how to calculate earnings for defined benefit interests;
• specify the super interests excluded from the policy;
• explain how the tax applies in a person’s final year; and
• set the adjustment factors for capital gains tax for larger super funds. 

The consultation period closes on 7 April 2026. 

ASIC consults on relief for managed discretionary account services

On 23 March, ASIC opened consultation on proposed changes to ASIC Corporations (Managed Discretionary Account Services) Instrument 2016/968, which is due to expire on 1 October 2026.

ASIC is seeking feedback on whether Instrument 2016/968 should be extended for a further period and, if so, whether there should be substantive and/or simplification changes to the policy settings and terms of the relief set out in the Instrument. 

Instrument 2016/968 provides conditional relief from the managed investments provisions and the product disclosure provisions of the Corporations Act. The Instrument also modifies the financial services disclosure provisions under the Corporations Act to provide conditional relief in relation to statements of advice and financial services guides for MDA services.

The consultation period ends at 5.00 pm AEST on 28 April 2026. 

ASIC launches financial complaints data dashboard

On 18 March, ASIC announced the launch of its new interactive dashboard which allows Australians to have unprecedented access to consumer complaints data. 

The Internal Dispute Resolution (IDR) data dashboard enables users to compare the complaints reported by individual financial firms for the first time, including their handling of complaints associated with specific products like home loans, credit cards, life and general insurance, or financial advice.

The dashboard is aimed at enhancing transparency, improving public scrutiny of the financial system, promoting greater accountability within the financial services industry, and providing ASIC with a valuable data set to inform regulatory decision making

Key features of the dashboard include:

• an overview of complaint volumes and trends over specified reporting periods;
• categorised breakdowns of complaints by issue and complaint outcome;
• complaints resolution times for individual financial firms; and
• information about monetary remedies paid.

AFCA publishes updated Rules and Operational Guidelines

On 12 March, AFCA published its updated Rules and Operational Guidelines which came into effect following extensive consultation with industry, consumer groups, paid representatives and other stakeholders, and subsequent ASIC approval.

Updates include: 

• an amendment to AFCA’s jurisdiction to include the ability to investigate scam-related complaints involving receiving banks and unauthorised accounts opened by scammers in the complainant’s name, following a change to AFCA’s authorisation conditions by the Federal Government;
• the introduction of Rule A.11.6 which allows for AFCA to publish the names of financial firms that fail to comply with AFCA determinations;
• new obligations for paid representatives;
• the removal of legacy complaints provisions (Section F); and
• a minor clarification in the Operational Guidelines for alignment with the AFCA Rule C.1.3(b) by referring to AFCA’s interpretation of the definition of a small business credit facility in the Rules. 

ASIC trims regulatory guidance to reduce complexity for industry

On 10 March, ASIC announced it has withdrawn and updated certain regulatory guides as part of its push to make financial regulation simpler, clearer and easier to apply.

ASIC has withdrawn outdated guidance:

• Regulatory Guide 64 Failure to lodge documents (RG 64), and
• Regulatory Guide 40 Good transaction fee disclosure for bank, building society and credit union deposit and payments products (transaction accounts) (RG 40).

Following on from the withdrawal of RG 64 and RG 40:

• companies can find information about their obligations to lodge certain company documents on ASIC’s company annual review webpage;
• consumers seeking information about transaction accounts, credit cards, and other banking products can visit moneysmart.gov.au; and
• retail payment and deposit product providers can also refer to ASIC’s regulatory resources on good disclosure practices, including Regulatory Guide 168 Product Disclosure Statements: Disclosure and other obligations (RG 168), and Regulatory Guide 221 Facilitating digital financial services disclosures (RG 221).

To maintain accuracy and clarity for the industry, ASIC has also made minor and technical changes to: 

• Regulatory Guide 104 AFS licensing: Meeting the general obligations (RG 104), and
• Regulatory Guide 205 Credit licensing: General conduct obligations (RG 205).

RBA updates on proposed decommissioning of the bulk electronic clearing system

On 10 March, RBA announced it had released an update on the progress made by the payments industry over the past year against the recommendations outlined in the risk assessment into the proposed decommissioning of the bulk electronic clearing system.

The RBA recognises the industry’s efforts to implement the recommendations from the risk assessment, especially in relation to increased industry coordination and direct engagement with end users. 

However, the update highlights several areas where risk has persisted, particularly in relation to key stakeholders across the account-to-account (A2A) payment ecosystem who have highlighted insufficient consensus within the industry about the best way to process future bulk payments.  This impedes on effective decision-making and analysis for establishing a future path for A2A payments. 

If industry participants are unable to make coordinated progress on modernising A2A payments, the RBA would take further action to achieve outcomes in the public interest.

ASX confirms submission of Commitments Plan to ASIC

On 27 February, ASX announced it submitted its commitment plan to ASIC outlining how ASIC will deliver the strategic package of actions that were agreed following delivery of the Inquiry Panel’s Interim Report (commitment plan). The plan is designed to support a reset of ASX as a trusted and active steward of Australia’s critical market infrastructure. 

ASX Chair David Clarke said:

‘we see this as a critical inflection point for the ASX to transform and rebuild confidence.  As a steward of critical market infrastructure, we are held to high standards, and we acknowledge we have not always met them. We are fully invested in turning this around and delivering lasting change.’

Key elements within the commitment plan include:

• the strengthening of governance and enhancing independence of the clearing and settlement functions;
• strong and accountable leadership at all levels with the board overseeing the appointment of a new CEO with the expertise and mindset required for the next phase;
• a new organisational model establishing an expanded Clearing and Settlement division with dedicated resourcing in key areas;
• redefining the Accelerate program to ensure it is integrated and an enterprise-wide initiative that will deliver lasting improvement aligned with ASX’s stewardship responsibilities; and
• commitment to accumulating the additional capital charge of $150 million imposed by ASIC by 30 June 2027, for example by reducing the 1H26 dividend payout ratio to 75 per cent (from 85 per cent) of underlying net profit after tax and operating a discounted dividend reinvestment plan. 

RBA releases Guidance for the Australian Clearing and Settlement Facility Resolution Regime

On 18 February, RBA announced it has published Guidance on the Australian Clearing and Settlement Facility Resolution Regime and a Response to Consultation summarising the feedback received from respondents and setting out how the RBA has addressed that feedback in the guidance. 

Clearing and settlement (CS) facilities provide post-trade clearing and settlement services for transactions that occur in financial markets. ASIC has the primary responsibility for licensing CS facilities and for granting exemptions from the requirement to hold a CS facility licence. However, in September 2024, the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024 was passed and provided the RBA with crisis resolution powers in relation to domestically incorporated CS facilities. These powers enable the RBA to manage or respond to a threat posed to the continuity of critical CS facility services or the stability of the financial system in Australia arising in relation to a domestic CS facility licensee. 

In June 2025, in response to stakeholders’ requests, the RBA released a consultation paper seeking views on its draft guidance which was intended to provide further information about when and how the RBA would generally expect to use its resolution powers over Australian CS facilities. The guidance aims to assist CS facility participants and other stakeholders to understand the RBA’s general approach to resolution and the potential impacts on them if the RBA decides to use a resolution power. 

It is important to note that the guidance does not have the force of law, nor does it pre-commit or otherwise bind the RBA, or prevent the RBA, from taking a particular course of action. If there is any inconsistency between the Guidance and the legislation, the legislation prevails.