(Re)Insurance and Regulation Focus - fortnight commencing 2 February 2026
03 February 2026
Key developments in the last fortnight
ASIC publishes key issues outlook for 2026
ASIC has released a list of key issues for 2026 showing where the regulator considers risks are mostly likely to emerge and where ASIC will focus to safeguard trust, integrity and confidence in Australia’s financial system. The identified issues include rising risks for retail clients in private credit markets, operational failures by superannuation fund trustees causing member harm, aggressive marketing and inappropriate financial advice leading to consumer loss through investments in high-risk products, innovative technology including agentic AI bringing risks from automated decision and scams, cyber attacks and data breaches damaging market confidence, regulatory gaps related to new financial sector participants such as those dealing in digital assets and payments, poor insurance claims handling and low quality financial reporting and sustainability reporting. This release provides important directions for market participants to be aware of.
NIBA’s responses to Code review recommendations
The National Insurance Brokers Association (NIBA) has formally responded to 14 recommendations in the Independent Review of the Insurance Brokers Code of Practice (the Code), in support of six of the proposed changes while rejecting the remaining eight. NIBA supports the proposals to extend remuneration disclosure beyond current settings to all retail clients, enhanced protections for vulnerable clients, a new requirement for brokers to make contact 28 days before renewal, new record‑keeping standards, and a minimum five‑year independent review cycle for the Code. NIBA opposes recommendations on making the Code contractually enforceable and mandating disclosure templates, and other recommendations on incorporating the Insurance Brokers Code Compliance Committee governance in the Code. This response signals NIBA’s willingness to tighten standards and broaden consumer protections, while drawing lines around how far the Code should go in redefining broker obligations and legal enforceability. NIBA will now begin member and stakeholder consultations before releasing the 2026 Code.
NIBA backs tougher broker disclosure rules but rejects most Code review recommendations
BPS Financial penalised for $14 million for crypto Qoin Wallet
Back in 2024, the Federal Court found that BPS Financial Pty Ltd (BPS Financial) engaged in unlicensed conduct by issuing and providing financial product advice about their Qoin Wallet product (which was a non-cash payment facility that customers could use to transact digital assets) without holding an Australian Financial Services licence. The Court also found that BPS Financial engaged in misleading and deceptive conduct when it made several false and misleading representations about the Qoin Wallet. In 2025, the Full Federal Court found that BPS Financial engaged in unlicensed conduct over an additional 10-month period while being an authorised representative of another licensee as BPS Financial, acting on its own behalf, could not rely on the ‘authorised representative’ exemption under the Corporations Act when issuing the Qoin Wallet. In the recent penalty hearing, BPS Financial was fined $14 million for its promotion and operation of the Qoin Wallet product, which represents $2 million for unlicensed conduct and $12 million for misleading and deceptive conduct in connection with making false and misleading statements. This penalty is intended to send a strong message to the crypto industry, which continues to be a focus for ASIC.
BPS Financial to pay $14 million in penalties over crypto Qoin Wallet
Key dates
- 9 February 2026 – ASIC’s consultation closes on proposed updates to guidance on financial reporting and audit relief in RG 43.
- 31 March 2026 – enrolment opens for AML/CTF tranche 2 entities.
- 1 July 2026 – AML/CTF obligations commence for tranche 2 entities.
In case you missed it
APRA’s updated GPS 410 took effect form 1 January 2025, simplifying the notification requirements for any transfer or amalgamation of insurance policies – reach out if this is relevant to you.
