Financial Services, Funds and Superannuation legal update - October to November 2025
14 November 2025
Welcome to the October and November Financial Services legal update, your guide to the key regulatory developments, enforcement actions and emerging legal trends shaping Australia’s sector.
October saw continued regulatory activity across governance, markets, and enforcement. ASIC advanced its regulatory simplification agenda, releasing new guidance and information sheets on exchange-traded products, digital assets, and audit oversight, alongside major reviews into outsourcing, superannuation advice, and financial reporting. APRA is consulting on changes to CPS 230, capital requirements for longevity products, and platform trustee oversight. Meanwhile, AUSTRAC release updated AML/CTF guidance covering the coming reforms and further industry specific guidance.
In early November ASIC held its Annual Forum where it covered a range of topics. In this update, we include insights from the Forum.
Derivatives
ASIC proposes to remake derivative clearing rules
ASIC is seeking feedback on its proposal to remake the ASIC Derivative Transaction Rules (Clearing) 2015 (Rules), which are scheduled to sunset on 1 April 2026. It is proposed that the remade instrument will retain substantially the same form as the existing Rules, except for minor administrative updates to modernise the Rules and extend exemptive relief for clearing derivative transactions resulting from post-trade risk reduction exercises. ASIC also proposes that the transitional relief in relation to certain swaptions expire on 1 April 2026. Submissions are due by 5 pm AEDT on 28 November 2025.
ASIC proposes to remake derivative clearing rules | ASIC
Funds
ASIC reviews offshore outsourcing practices among responsible entities
ASIC has reviewed the use of offshore service providers (OSPs) by responsible entities (REs) of registered managed investment schemes. The review occurred across two review phases covering 30 REs and $191 billion in assets. ASIC assessed due diligence, performance monitoring, and cyber resilience controls. While most REs maintained appropriate frameworks, ASIC identified gaps in due diligence, SLA monitoring, breach management, and cyber security. Larger REs generally demonstrated more sophisticated systems, with the strongest practices including dedicated outsourcing governance boards, centralised oversight, and enterprise-wide risk frameworks.
Review of offshore outsourcing – Responsible entities | ASIC
General regulatory
ASIC updates guidance on digital assets to support innovation and investor protection
ASIC has released an updated information sheet INFO 225: Digital Assets: Financial Products and Services. ASIC has clarified how existing laws apply to digital assets, confirming that products such as stablecoins, wrapped tokens, tokenised securities and digital wallets may be considered financial products under current law. Firms offering these products may require a financial services licence. To assist transition, ASIC has granted a no-action position until 30 June 2026 and proposed targeted relief for certain distributors and custodians. The updated guidance, informed by Consultation Paper 381, provides greater regulatory certainty while reinforcing investor protections. Feedback on the proposed relief is open until 12 November 2025.
APRA to consult on targeted changes to CPS 230 for non-traditional service providers
APRA is consulting on targeted amendments to CPS 230 Operational Risk Management, focusing on non-traditional service providers (NTSPs) such as payment schemes, clearing facilities, and stock exchanges. The proposed changes aim to clarify contracting and monitoring expectations for NTSPs and reduce regulatory burden where full outsourcing requirements are not practical.
APRA to consult on targeted changes to CPS 230 for non-traditional service providers | APRA
ASIC roadmap to grow Australia’s capital markets
ASIC has released REP 823 – Advancing Australia’s evolving capital markets: Discussion paper response, setting a roadmap to strengthen public and private markets and promote investment-led economic growth. The roadmap builds on findings from ASIC’s private credit surveillance (REP 820) and expert insights (REP 821–822), outlining measures to modernise listing and disclosure frameworks, enhance supervision of wholesale funds, and improve data and audit transparency. Key points include:
- ASIC will continue to engage with the ASX on its commitment to consult on changes to the listing rules to enhance the attractiveness of its public market including lowering the free float requirements to be similar to other foreign jurisdictions,
- ASIC may explore tailored, potentially lighter disclosure and governance frameworks for SMEs seeking to list,
- ASX is considering lowering the financial thresholds for foreign exempt listings to make the ASX more attractive as a secondary listing venue,
- ASIC is not convinced that adjustments to permit dual class shares are warranted,
- ASIC is reviewing Regulatory Guide 254 Offering securities under a disclosure document (RG 254) to consider pre-prospectus advertising,
- ASIC is reviewing guidance in Regulatory Guide 228 Prospectuses: Effective disclosure for retail investors to assess its effectiveness and whether it is too complicated;
- ASIC accept that the Australian remuneration reporting standards, and the two-strikes framework, is burdensome even by global standards;
- ASIC has recommended amendment to managed investment scheme framework including requiring wholesale fund operators to notify ASIC of wholesale schemes in operation, extending retail fund auditing requirements to wholesale funds, and amending the wholesale client tests to increase the current financial thresholds.
25-264MR A roadmap for capital markets to grow our economy | ASIC
ASIC proposes to remake relief for generic financial calculators
ASIC is consulting on remaking the ASIC Corporations (Generic Calculators) Instrument 2016/207, which provides licensing relief for providers of generic financial calculators and is due to sunset on 1 April 2026. ASIC is proposing only minor updates including simplifying provisions for consistency with the reportable situations regime and other technical amendments.
25-264MR A roadmap for capital markets to grow our economy | ASIC
ASIC releases findings from 2024–25 financial reporting and audit surveillances
ASIC has released Report 819 – Oversight of financial reporting and audit 2024–25, which summarises results from its expanded surveillance program covering the 12 months to 30 June 2025. ASIC reviewed 254 company financial reports, conducted 22 surveillances, and assessed 10 audit files across eight firms. Eighteen entities made corrections, including significant restatements and asset impairments. ASIC reported enforcement outcomes such as auditor suspensions, undertakings, and registration conditions.
ASIC launches public breach data dashboard
ASIC has launched a Reportable Situations dashboard providing public access to data on self-reported breaches by financial services and credit licensees. The interactive tool presents trends on breach volumes, causes, customer losses, investigation timelines, and remediation outcomes.
ASIC launches new breach data dashboard | ASIC
ASIC annual report highlights surge in enforcement and market-strengthening initiatives
ASIC released its 2024–25 Annual Report, which summarised ASIC’s regulatory activity across the 2024-25 financial year. ASIC reported a 50% increase in investigations, 20% more civil proceedings, and 829 targeted surveillances completed over the year. ASIC delivered $104.1 million in civil penalties and $16.8 million in criminal fines. ASIC also removed more than 6,900 scam and phishing websites.
ASIC approves Cboe’s listing market to boost competition in public markets
ASIC has approved Cboe Australia’s listing market application, allowing the exchange to list new companies and directly compete with the ASX and other market operators. Cboe Australia handles about 20% of equity market turnover (around $2 billion daily) and joins the ASX, NSX and SSX as licensed listing markets. The move builds on ASIC’s broader capital markets work, including initiatives to fast-track IPOs and promote competition in clearing and settlement services.
25-227MR ASIC approves Cboe’s listing application to bolster competition in public markets | ASIC
ASIC updates guidance on communicating audit findings
ASIC has revised Regulatory Guide 260 – Communicating findings from audit files to directors, audit committees or senior managers to clarify how and when audit findings will be shared with company leaders. The updates reflect ASIC’s new powers over registrable superannuation entities and amendments to the ASIC Act, which now permit the regulator to communicate audit file review findings directly to directors of superannuation trustees. The revised guide replaces the July 2022 version and provides practical direction for directors, audit committees, senior managers, and audit firms on effectively handling and responding to audit findings.
ASIC flags risks in offshore outsourcing and calls for stronger governance
ASIC has urged financial services entities to tighten governance and risk management after a review found significant weaknesses in the use of offshore service providers (OSPs) by financial advice licensees and responsible entities of managed investment schemes.
The review revealed inconsistent oversight, with some firms lacking a formal framework for managing offshore outsourcing risks. ASIC identified key risks as loss of control over critical functions, cybersecurity vulnerabilities, operational disruptions, and conflicts with foreign laws. ASIC stated it will continue monitoring entities’ governance and cyber resilience, warning that it will hold firms to account for failures. The regulator pointed to past enforcement actions against FIIG Securities, Fortnum Private Wealth, and the landmark RI Advice case as examples of its ongoing focus on cybersecurity and risk management.
25-234MR ASIC flags risks in offshore outsourcing after review identifies governance gaps | ASIC
ASIC releases consolidated guidance for exchange-traded product issuers
ASIC has released Regulatory Guide 282 Exchange traded products (RG 282) a new consolidated guide outlining regulatory expectations for exchange-traded product (ETP) issuers and market operators. The new guidance brings together information previously spread across multiple sources including INFO 230 Exchange traded products: Admission guidelines, Report 583, and Report 282.
RG 282 covers:
- Obligations for ETP issuers, including responsible entities of registered managed investment schemes, AFS licensing, and modified design and distribution obligations.
- Market operator responsibilities, such as admission and quotation requirements, issuer approval processes, and oversight of portfolio disclosures and liquidity arrangements.
ASIC issues new regulatory guide for exchange-traded product issuers | ASIC
APRA refines proposed changes to capital framework for longevity products
APRA has commenced a second-round consultation on reforms to its capital requirements for longevity products (such as annuities), aiming to foster greater product innovation for retirees while maintaining policyholder safeguards. Proposed changes include a more principles-based approach to setting the illiquidity premium, broader asset eligibility, and targeted restrictions on alternative or privately-rated assets. The reforms are intended to reduce procyclicality in life insurers’ capital models and support competitive pricing of longevity-linked products. The consultation will remain open until 17 December 2025.
APRA refines proposed changes to the capital framework of longevity products | APRA
ASIC confirms preliminary investigation into Clime entities
ASIC has confirmed a preliminary investigation into the Clime Australian Income Fund and compliance of its target market determination and product disclosure statement with the law. The investigation includes Clime Asset Management Pty Ltd, the Fund’s investment manager, but does not extend to Clime Capital Limited or Clime Investment Management Limited. ASIC emphasised that confirmation of an investigation does not imply misconduct and that the scope may change as inquiries progress.
25-254MR ASIC statement - Clime entities | ASIC
Financial advice
ASIC review raises concerns over SMSF advice risks
ASIC has released Report 824 Review if SMSF Advice following its review of 100 financial advice files on SMSF establishment found in which it found that 62 failed to demonstrate compliance with the best-interests duty and 27 raised significant concerns about client detriment. The report found that 38% of advice complied with the obligation to act in clients’ best interests. ASIC’s report outlines eight action points for advisers and four for licensees to strengthen compliance. These action points included not mis-selling SMSFs on the basis of control, considering the suitability of an SMSF for the client, not recommending an SMSF if it will expose the client to unnecessary and inappropriate risks, prioritising the client’s interests over those of the adviser, licensee or associates, considering the client’s need for suitable and affordable insurance, including the basis for the advice and exercising good professional judgement, and maintaining suitable records.
ASIC acts against financial advisers for failing to meet CPD obligations
ASIC has taken action against five financial advisers referred to the Financial Services and Credit Panel for failing to meet their continuing professional development requirements. The FSCP issued reprimands to four advisers and took no further action against one.
Superannuation
APRA revises governance proposals following industry consultation
APRA has announced refinements to its proposed governance reforms for banks, insurers, and superannuation trustees following extensive industry feedback. 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. APRA has confirmed that it will modify or drop several proposals, including:
- the non-executive director tenure limit will now be a 12 years, with short extensions permitted only in limited cases (previously a 10-year limit plus two-year extension).
- requiring banks and insurers to have at least two independent directors not on other group boards will not proceed as originally proposed;
- early engagement with APRA on responsible person appointments and succession planning will also not proceed;
- APRA will clarify elements relating to director skills, conflicts of interest, and publication of registers of relevant interests and duties.
APRA revises governance proposals following industry consultation | APRA
APRA calls for stronger action by platform trustees
APRA has written to all platform trustees setting out findings and expectations from its thematic review (covering 95% of platform assets) and reinforcing that trustees are accountable stewards of members’ savings under the SIS Act and prudential standards SPS 530 and SPS 515. APRA observed wide variance in practices, which require uplift in primarily three areas being on-boarding, ongoing monitoring, and remedial action and member transfers.
APRA stated it will issue individual assessment letters to trustees and that is expects trustee to determine and time-bound their uplift actions, notify any prudential breaches, and review and confirm FAR accountabilities.
APRA calls for stronger action by platform trustees | APRA
ASIC warns super trustees on poor retirement communications
ASIC has released Report 818 – From superficial to super engaged: Better practices for trustee retirement communications, which examined how superannuation trustees communicate with members about retirement. ASIC’s report details good and poor practices identified across 12 participating trustees between the start of the retirement income covenant and 11 December 2024. ASIC’s review found many trustees still rely on generic, pre-retirement messaging, with limited tailoring for retirees and vulnerable member groups. ASIC has warned super funds against generic “one-size-fits-all” approaches leave members without the information needed to make confident retirement decisions. ASIC urged trustees to adopt data-driven communication strategies, supported by better practice examples in the report.
Payday Superannuation reforms receive Royal Assent
The Treasury Laws Amendment (Payday Superannuation) Act 2025 and the Superannuation Guarantee Charge Amendment Act 2025, collectively known as the payday super reforms have now received royal assent. From 1 July 2026, employers must pay superannuation guarantee (SG) contributions at the same time as salary and wages, with payments generally required to reach employees’ funds within seven business days of payday. Failure to do so will trigger liability for an updated superannuation guarantee charge (SGC), which now includes components for unpaid contributions, notional earnings, administrative uplift, and choice loading.
Payday superannuation | Australian Taxation Office
Anti-Money Laundering/Counter Terrorism Finance (AML/CTF)
AUSTRAC releases regulatory guidance to support AML/CTF law reforms
AUSTRAC has released new regulatory guidance for both Tranche 1 and Tranche 2 entities in preparation for major reforms to AML/CTF Laws coming into effect on 31 March 2026 and 1 July 2026, respectively. The guidance also included sectoral guidance covering Tranche 2 entities that must be compliant by 1 July 2026, including real estate agents, accountants, lawyers, and dealers in precious metals and stones.
AUSTRAC releases guidance for current and new reporting entities | AUSTRAC
AUSTRAC proposes new powers to tackle high-risk products, services and channels
The Minister for Home Affairs has proposed legislation to grant AUSTRAC’s CEO new powers to restrict or prohibit certain high-risk products, services or delivery channels under the AML/CTF framework. The move is driven by mounting concerns about covert money-laundering through channels such as crypto-ATMs, which AUSTRAC contends are increasingly used in scams and by money-mules.
Powers proposed to tackle high-risk products services and channels | AUSTRAC
AUSTRAC urges banks to tighten controls on illicit-tobacco-linked retailers
AUSTRAC has called on banks to monitor more closely retailers involved in tobacco and convenience-store businesses, particularly those using non-bank ATMs and EFTPOS devices, following concerns that illicit tobacco-sales funds are flowing through these channels. According to AUSTRAC, non-bank ATMs linked to tobacco retail were handling large volumes of suspicious transactions, with illicit tobacco accounting for an estimated $4 billion in organised-crime proceeds in 2023-24. Banks are being asked to reassess risk, enhance transaction monitoring, and report suspicious activities. AUSTRAC stated it will hold financial institutions accountable where services facilitate criminal abuse of the financial system.
Banks to keep a closer eye on retailers peddling illicit tobacco | AUSTRAC
ASIC enforcement
ASIC Enforcement priorities 2026
ASIC has published its enforcement priorities for 2026 at the ASIC Annual Forum. There are a number of new priorities and a number of continuing priorities. The new priorities include:
- 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,
- Continued focus on the collapse of the Shield and First Guardian Master Funds, with ASIC commencing civil penalty proceedings in the Federal Court against Interprac Financial Planning Pty Ltd and researcher SQM Research Pty Ltd as well as seeking leave to commence proceedings against MWL Financial Services Pty Ltd, former director Nicholas Maikousis and lead generator Imperial Capital Group Australia Pty Ltd in relation to Shield and First Guardian Master Funds.
ASIC’s continuing enforcement priorities include:
- strengthening investigation and prosecution of insider trading conduct, which has included the development of a specialist insider trading team within ASIC,
- misconduct exploiting consumers facing financial difficulty including predatory credit practices,
- unlawful practices seeking to evade small business creditors,
- holding super trustees to account for member services failures, and
- auditor misconduct.
Notably absent from the continuing priorities is greenwashing conduct which according to Sarah Court, deputy Chair, will no longer be a priority although she noted “ASIC will remain vigilant” for greenwashing conduct.
25-273MR ASIC announces 2026 enforcement priorities | ASIC
25-275MR ASIC sues SQM Research alleging misleading reports related to Shield | ASIC
25-274MR ASIC sues Interprac over alleged Shield and First Guardian licensee failures | ASIC
ASIC sues Fiducian over ESG fund governance failures
ASIC has launched civil penalty proceedings in the Supreme Court of NSW against Fiducian Investment Management Services Limited (FIMSL), alleging misleading conduct and breaches of responsible entity duties over its Diversified Social Aspirations Fund. ASIC claims FIMSL failed to verify or monitor investments to ensure they aligned with the Fund’s ESG promises, and that its PDS contained false and misleading statements. The PDS stated that: ‘The share portfolios comprise investments in companies that aim to be positive for society and for the environment and aim to avoid investments in harmful activities’. It also specified a number of industries or activities that the Fund would avoid investing in. The Fund allegedly held investments in companies such as BHP, Rio Tinto, and Woodside, despite claiming to avoid harmful industries.
High Court rejects appeal bid by Cigno and BSF Solutions directors
The High Court has dismissed an application for special leave to appeal by Cigno Australia director Mark Swanepoel and BSF Solutions director Brenton Harrison, upholding findings that they were involved in unlicensed credit activity and charged consumers prohibited fees under Cigno’s “No Upfront Charge Loan Model.” The matter will return to the Federal Court on 7 April 2026 before Justice Jackman for a hearing on penalties.
ASIC issues infringement notice to HESTA for misleading statements about carbon emissions
HESTA superfund has paid two infringement notices issued by ASIC for misleading statements. Between 15 April 2021 to 18 December 2024, ASIC alleged that HESTA placed paid advertisements which stated, ‘HESTA is committed to remove all investment in carbon emissions by 2050’. ASIC was concerned that the advertisements represented that HESTA planned to remove all investment in carbon emissions by 2050 when instead HESTA’s target was to achieve net zero carbon emissions across its investment portfolio by 2050.
ASIC issues interim stop order for TruePillars Investment Trust
ASIC has issued interim stop orders on the PDS for two classes of units of the TruePillars Investment Trust, a registered managed investment scheme promoted by T.P.R.E. Ltd. The stop orders prevent TPRE from offering, issuing, selling, or transferring interests in the Fund after ASIC identified concerns that the PDSs may be misleading and not clear, concise or effective.
ASIC’s concerns include potential omissions and misleading statements in the fund’s PDS relating to omitting information about the investments and terms of the investments of the fund, not adequately disclosing the types of conflicts of interest, failing to adequately disclose significant risks associated with an investment in the fund, failing to adequately disclose the fees and costs of the fund, and containing misleading statements about income distributions, loss reserves, liquidity, risk and withdrawals.
25-240MR ASIC halts offers of TruePillars Investment Trust | ASIC
Federal Court dismisses ASIC case against former Freedom Insurance executives
The Federal Court has dismissed ASIC’s proceedings against former Freedom Insurance director Keith Cohen and former consultant Robert Oayda, finding they were not involved in unlawful conduct relating to the Freedom Group’s sales incentive programs. ASIC had alleged that between November 2017 and October 2018, the pair were involved in contraventions of conflicted remuneration laws and a breach of directors’ duties, arguing the company’s incentive schemes prioritised sales over customer interests. The Court, however, did not accept ASIC’s claims, concluding that the evidence did not establish that the sales programs or conduct in question breached the law.
Perth financial services directors charged over failure to lodge financial accounts
Phillip Bird and Daniel Holmes, directors of Sheffield Insurance Pty Ltd, have been charged with two offences each for allegedly aiding and abetting Sheffield’s failure to lodge financial statements and auditor’s reports with ASIC over a five-year period from 2019 to 2024. ASIC alleges that, as directors, Mr Bird and Mr Holmes were responsible for Sheffield’s ongoing non-compliance with its obligations to lodge financial reports.
Former Statewide Super executives acquitted of dishonesty charges
Two former Statewide Super executives Kieran Francis Netting and Grant David Eastwood have been acquitted of dishonesty offences following a trial in the District Court of South Australia. A jury found Mr Netting not guilty on 7 October 2025, and Mr Eastwood not guilty on 15 October 2025, clearing both of all charges. On 9 December 2022, Mr Eastwood and Mr Netting were charged with dishonesty offences related to their procurement of services between February 2019 and December 2019.
25-237MR Two former Statewide Super executives acquitted on charges of dishonesty offences | ASIC
Federal Court orders wind-up of remaining ALAMMC Group companies
The Federal Court has ordered the winding up of 13 ALAMMC Group companies after the Court found significant concerns about the alleged misuse of investor funds and the viability of the businesses, as outlined in reports from Court-appointed receivers. The receivers identified around $91.6 million raised from hundreds of investors was allegedly misused or diverted, investor funds were allegedly intermingled across a number of entities, and there was no meaningful revenue generation. Control of the companies has now transitioned from receivership to liquidation, with BDO appointed as liquidators.
25-236MR Federal Court orders remaining ALAMMC Group companies wound up | ASIC
Authorised deposit taking institutions (ADI)
APRA proposes more accessible pathway to IRB accreditation for banks
APRA has released a consultation paper proposing a more flexible and transparent process for banks seeking Internal Ratings-Based (IRB) accreditation to calculate credit risk-weighted assets. Under the proposed framework, banks would be able to follow a streamlined, phased pathway to accreditation, with clearer guidance and proportional requirements for smaller and medium sized banks. Currently, only a handful of large banks use the IRB approach. The consultation is open until 19 December 2025.
APRA proposes more accessible pathway to IRB accreditation for banks | APRA
Authors
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