Financial Services in Focus – Issue 109

ASIC updates guidance on financial reporting and audit relief

On 24 April, ASIC announced it has reissued Regulatory Guide 43 Financial reporting and audit relief (RG 43) to streamline guidance on financial reporting and audit relief. The update follows Simple Consultation 42 Proposed updates to guidance on financial reporting and audit relief in RG 43 (CS 42). 

RG 43 provides guidance to entities seeking relief from the financial reporting and audit requirements of the Corporations Act. Changes include:

• reflecting legislative reforms since the guidance was last updated;
• incorporating other ASIC guidance, including Regulatory Guide 29 Financial reporting by Australian entities in dual listed company arrangements (RG 29) (which has since been withdrawn); and
• simplifying the existing guidance. 

ASIC announces roadmap for digital assets law reform implementation

On 20 April, ASIC announced that it intends on issuing new regulatory guidance and set out certain operational standards as part of implementing new laws that bring digital asset platforms (DAPs) and tokenised custody platforms (TCPs) under the financial services licensing regime from April 2027. 

The Corporations Amendment (Digital Assets Framework) Act 2026 (DAF Act) passed Parliament on 1 April 2026, received Royal Assent on 8 April 2026, and will commence on 9 April 2027. The DAF Act provides for an 18-month implementation timeline. 

During the transition period ASIC expects to seek views on a range of topics, including:

• the need for new regulatory guidance;
• ASIC’s approach to applying their discretion in the regime, where appropriate (eg in relation to responsible managers);
• standard conditions that apply to platform licensees; and
• a potential streamlining of the licence variation process for certain cohorts of firms (eg those who have only recently obtained a licence under Information Sheet 225: Digital assets: Financial products and services (INFO 225)).

Under the new regime, ASIC is tasked with:

• licensing and supervising these platforms, and enforcing the law as required;
• developing any new standards and guidance in line with their broader regulatory simplification work;
• producing some regulatory guidance about the new laws, standards and how ASIC will license and supervise firms; and
• consulting on:
  • asset-holding standards (s 912BE);
  • transactional and settlement standards (s 912BF); and
  • financial requirements, similar to how ASIC already implements these in Regulatory Guide 166 AFS licensing: Financial requirements (RG 166).

A consultation package on the standards and guidance outlined above will be developed. 

For more information, please refer to our recent article, Digital assets reform passes: 18-month licensing window opens for platform operators.

ASIC remakes non-cash payment facilities instrument

On 2 April, ASIC announced it has remade a legislative instrument that provides exemptions for low-risk non-cash payment facilities from different aspects of the financial services licensing regime in the Corporations Act.

ASIC Corporations (Non-cash Payment Facilities) Instrument 2026/167 (ASIC Instrument 2026/167) extends the relief previously provided by ASIC Corporations (Non-cash Payment Facilities) Instrument 2016/211 until April 2031.

The decision to remake the legislative instrument follows Simple Consultation 29 Proposal to remake relief instrument for non-cash payment facility exemptions (CS 29). 

ASIC Instrument 2026/167remakes the relief for the following non-cash payment products:

• travellers’ cheques, which are exempt from the requirement to provide confirmation of transaction;
• loyalty schemes and road toll facilities, which are not subject to the financial services laws;
• prepaid mobile facilities and some non-reloadable gift facilities, which are exempt from the licensing, conduct, and disclosure obligations; and
• low value non-cash payments products, which are exempt from the licensing, conduct, and disclosure obligations.

ASIC will revisit the need for this instrument once the payments licensing reforms take effect. 

FSC digital advice research 

On 14 April, the Financial Services Council (FSC) released a research report titled The Role and Value of Digital Advice in Australia (Report). The Report covers new research highlighting the growing role of digital advice in improving access to financial guidance and supporting better retirement outcomes. It draws on analysis by CoreData and Borromean Consulting and explores the evolution of digital financial advice through industry interviews and national consumer research. 

The findings show that these tools are emerging as a trusted, accessible alternative to unregulated online sources, helping individuals navigate financial decisions with greater confidence. 

Key findings of the report include:

• digital advice users are more likely to seek financial advice;
• digital advice users are more likely to engage with professional retirement adequacy and investment advice in the next year, with the majority indicating they are more likely to engage with full professional advice in the future;
• digital advice users are more likely to seek advice sooner;
• all age cohorts are comfortable engaging with a combination of human and digital advice (hybrid models), particularly among older Australians; and
• trust in artificial intelligence-enabled advice increases when human judgement is explicitly part of the model. 

FSC CEO Blake Briggs said digital advice is ‘complementing traditional advice by meeting Australians where they are – providing simple, accessible guidance that can scale with their needs over time’. 

ASIC consults on regulatory guide updates to implement financial market infrastructure reforms

On 20 April, ASIC announced it is advancing the implementation of the Government’s financial market infrastructure (FMI) reforms through proposed updates to three regulatory guides, now open for consultation under Simple Consultation 50 Proposed updates to RG 172, RG 249 and RG 268 (CS 50): 

• Regulatory Guide 172 Financial markets: Domestic and overseas operators (RG 172).
• Regulatory Guide 249 Derivative trade repositories (RG 249).
• Regulatory Guide 268 Licensing regime for financial benchmark administrators (RG 268).

The proposed updates respond to legislative changes introduced by the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024, which commenced in September 2024. 

The updates would help align ASIC’s guidance with the strengthened and streamlined regulatory framework established by the FMI reforms, including:

• reflecting enhanced licensing, supervisory and enforcement powers for ASIC;
• reallocating certain powers between the Minister and ASIC; and
• expanding ASIC’s oversight of foreign entities operating FMIs with a significant Australian nexus.

The proposed changes aim to simplify and clarify existing guidance and ensure ASIC’s guidance is market-neutral for financial market licensees where relevant. 

The consultation period closes at 5pm on 25 May 2026. 

ASIC publishes ASX Inquiry Panel Final Report and acknowledges observations

On 2 April, ASIC published the ASX Inquiry Panel’s final report into the ASX group.

The Final Report builds on ASIC’s Interim Report by providing more detail supporting the Panel’s recommendations and follows a nine-month analysis on governance, capability and risk management frameworks and practices across the ASX. 

Consistent with the Interim Report, the Panel’s observations in the Final Report include:

• resilience of critical market infrastructure has been compromised to deliver high shareholder returns;
• governance arrangements fail to provide the necessary focus on critical market infrastructure;
• ASX lacks the aspiration to be a steward of critical market infrastructure; and
• capability and cultural barriers are hindering transformational change.

In addition to the Interim Report, the Panel also observed that:

• ASX is overly reactive and tactical in its response to incidents and identified gaps, requiring its risk management and compliance practices to mature to become fit-for-purpose and embedded in business processes; and
• the execution of ASX’s own market supervision responsibilities to monitor, supervise and enforce compliance with Operating and Listing Rules by participants and listed entities requires more reflection.

On 27 February this year, ASX submitted its Commitments Plan to ASIC outlining how it would deliver the strategic package of reforms agreed with ASIC. ASIC provides that it will continue to work closely with ASX on its delivery of the Plan, which includes:

• resetting ASX’s Accelerate to 30 June, which will define clear target sales for ASX to fulfil its stewardship role;
• developing revised technology strategy that aligns with the refreshed business strategy;
• meeting a capital charge of $150 million in net tangible assets to be implemented by June 2027; and
• committing to strengthening the governance and independence of ASX’s Clearing and Settlement Facility Boards.

On 2 April 2026, ASX announced its response to the Final Report, reaffirming its commitment to the Plan. 

AUSTRAC opens enrolment for new professions in next step for AML reforms

On 31 March, AUSTRAC announced it will be implementing the next phase of the Government’s anti‑money laundering reforms by opening enrolment for new professions. Businesses, including lawyers, accountants, conveyancers, real estate professionals, and dealers in precious stones and metals, can now enrol at AUSTRAC online.

This represents another step towards 1 July when these new sectors come under the anti-money laundering and counter-terrorism financing (AML/CTF) regime and will be required to comply with obligations under the AML/CTF laws, including implementing AML/CTF programs, conducting customer due diligence, reporting suspicious matters, and keeping records.

AUSTRAC has also introduced important updates for existing reporting businesses, strengthening the information collected as part of enrolment. Existing reporting businesses may now be required to provide additional information such as: 

• updated designated services;
• beneficial ownership details;
• AML/CTF compliance officer information;
• refreshed organisational profile information; and
• reporting group details.

To support these changes, new enrolment forms have been released on the AUSTRAC Online reporting platform.

Our online AML/CTF guide includes more information about the AML/CTF reforms for both new and existing reporting entities.

AUSTRAC announces virtual asset register changes to support AML/CTF reforms 

On 2 April, AUSTRAC announced changes to its virtual asset registers to support Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) reforms, which have introduced greater oversight of businesses operating in the virtual asset sector. 

As part of the AML/CTF reforms, Australia is renaming digital currency exchange (DCE) providers to the internationally recognised term virtual asset service providers (VASPs). This reflects the expanding range of crypto‑related products and services captured under the AML/CTF regime and strengthens Australia’s ability to supervise this high‑risk sector.

Under the new laws, all businesses providing virtual asset services must be registered with AUSTRAC and comply with Australia’s AML/CTF obligations. 

To support the reform, AUSTRAC has cleaned up its virtual assets register to ensure it cannot be misused for money laundering purposes, including:

• conducting a targeted review of the existing DCE register in late 2025;
• overseeing the removal of inactive businesses from the register through registration action or voluntary withdrawal; and
• moving to publish a searchable public register. 

The searchable VASP register is now publicly available, and aims to provide greater transparency, support legitimate businesses, and make it harder for criminals to hide behind inactive or shell crypto businesses.

AUSTRAC announces reporting blind spot in wealth management sector

On 15 April, AUSTRAC announced it had written to businesses in the wealth management sector regarding concerns about ‘alarmingly low’ suspicious matter reporting (SMR) and the risk that serious financial crimes may be going undetected. 

The letter sent by AUSTRAC follows a supervisory campaign that revealed 98 per cent of wealth management businesses did not submit a single SMR in 2025 despite the industry remaining exposed to a wide range of money laundering risks.

AUSTRAC’s 2024 compliance report similarly revealed that 92 per cent of wealth management businesses claimed to have zero high-risk customers. 

AUSTRAC CEO Brendan Thomas says these numbers ‘indicate that many businesses do not have adequate systems or processes in place to meet their reporting obligations or to properly identify high‑risk customers’.

Wealth management business are reminded they do not need proof of an offence to submit an SMR, and identifying a high-risk customer does not mean a business must stop providing services. 

AUSTRAC targets financial crime vulnerabilities in foreign-owned banks

On 10 April 2026, AUSTRAC announced the completion of two campaigns targeting the foreign-owned banking sector which revealed weaknesses in controls and reporting are creating opportunities for criminals to exploit Australia’s financial system.

The first campaign examined low suspicious matter reporting in foreign bank branches, which revealed:

• a range of concerning risk management practices, including ineffective AML systems and processes that could not detect high-risk behaviours and unusual or suspicious customer transactions; and
• an entrenched view among many branches that their businesses are low risk for money laundering. 

The second campaign examined money mule risks in foreign bank subsidiaries and revealed a high degree of exposure to such accounts, which are used by global money laundering organisations to evade detection. 

AUSTRAC is urging foreign banks with Australian branches to take on their feedback as they transition to the new AML requirement. 

Treasury consults on enhancing member protections in the superannuation system

On 7 April 2026, Treasury announced it is seeking feedback on policy options to better protect people in the superannuation system. This is a response to the collapse of the Shield and First Guardian Master Funds in 2024 and 2025 after 12,000 Australians invested $1.1 billion in retirement savings into the two funds. 

Treasury is consulting on changes that:

• strengthen trustee governance;
• make switching superannuation safer;
• limit or better protect advice‑fee deductions from superannuation; and
• require platform trustees to compensate members for some investment failures on their platforms.

The consultation period ends on 22 May 2026.

FSC releases superannuation industry standards 

On 16 April, the Financial Services Council (FSC) announced it had released a new industry standard, the Wrap Superannuation Platform Trustee Investment and Adviser Governance Principles: Standard and Better Practice Guidance (Standard), which will strengthen investment and adviser governance practices across superannuation platforms, enhance consumer protections, and provide greater consistency across the platform sector. 

The Standard sets out strengthened expectations around:

• initial due diligence of investment options, requiring trustees to assess the product issuer and investment manager across track record, governance, conflicts management, and disclosure;
• the use of holding limits, requiring trustees to consider limiting the amount of a member’s portfolio that can be invested in an option to manage concentration, liquidity and valuation risks;
• ongoing monitoring of investment options, with clear expectations for regular and trigger-based reviews against material changes in performance, risk and liquidity, and requiring defined escalation pathways where concerns emerge;
• governance of advice businesses using platforms, including the use of data to identify high-risk behaviours across advisers;
• oversight of advice fee deductions, requiring trustees to implement controls to detect and take action against inappropriate fee charging; and
• protections for unadvised members, including limiting access to a simpler investment menu and issuing proactive, factual communications.

The Standard will commence from 1 July 2026, with a six-month transition period before the requirement of full compliance from 1 January 2027. 

ASIC updates relief for securitisation entities from holding an AFS licence

On 10 April, ASIC announced it has remade ASIC Corporations (Securitisation Special Purpose Vehicles) Instrument 2026/175 (Instrument 2026/175), which exempts entities that carry on a securitisation business in specific circumstances from holding an AFSL when providing financial services to clients other than retail clients. 

Instrument 2026/175continues the relief provided under ASIC Corporations (Securitisation Special Purpose Vehicles) Instrument 2016/272 (Instrument 2016/272).

Following Simple Consultation 43 Proposed extension of instrument relieving securitisation entities from holding an AFS licence (CS 43), ASIC determined that Instrument 2026/175 is operating effectively and forms a useful part of the legislative framework.

In light of this renewal, ASIC will also make minor amendments to Regulatory Guide 167 AFS licensing: Discretionary powers (RG 167) for consistency and clarity.

ASIC and AASB team up to help smaller companies get ready for sustainability reporting

On 7 April, ASIC announced that it is collaborating with the Australian Accounting Standards Board (AASB) to host a series of free in-person workshops to help companies prepare for the new mandatory sustainability reporting requirements. 

This follows ASIC’s recent release of e-learning modules on the core concepts underpinning the sustainability reporting requirements. The workshops complement the e-learning modules by providing expert-led presentations, discussions and practical activities. Workshops will be delivered by the University of Technology Sydney and held in May across Sydney, Melbourne, Brisbane and Perth.

To express interest, register by clicking on the registration links provided on the ASIC website. 

ASIC increases email lodgements

On 2 April, ASIC announced an additional 30 forms are now available for email lodgement, bringing the total to 88 forms.

Email lodgement is available for a broad range of interactions, including: 

• company notifications
• foreign company updates
• auditor appointments and consents
• credit licence updates
• debenture holder notifications, and
• other regulatory lodgements.

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

AFCA appoints Chief Scams Officer

On 26 March, the Australian Financial Complaints Authority (AFCA) announced it has appointed David Lacey as its inaugural Chief Scams Officer (CSO). 

The CSO is a key leadership role at AFCA as it establishes the world’s first multi-party dispute resolution scheme for scams. 

The CSO will lead the expansion of AFCA’s jurisdiction to consider the role of banks, telcos and digital platforms in scam complaints. 

APRA decommissions data submission system 

On 27 March, APRA announced it has decommissioned the Direct to APRA (D2A) data submission system for entity access following the identification of security vulnerabilities through a routine penetration test on 19 March. D2A was a Java-based application that enabled regulated entities to fulfil their reporting obligations to APRA. 

Following this, APRA has accelerated its program to transition data collections onto the singular interface of APRA Connect.

APRA has urged organisations that use D2A to immediately uninstall the D2A client and review system and data security measures and undertake additional checks as a preventative measure. 

For an interim period, organisations with data submissions due are instructed to:

• Complete their files as per their normal protocols in the lead up to the due date of their submission (XML or XBRL files are preferred); and
• Contact dataanalytics@apra.gov.au for instructions on how to securely submit these files.

APRA will provide further information in due course about the program to move all data collections to APRA Connect.