Financial Services Snapshots

Financial Markets

ASIC proposes to remake derivative clearing rules

On 28 October 2025, ASIC invited feedback on remaking the ASIC Derivative Transaction Rules (Clearing) 2015 ahead of its scheduled sunset on 1 April 2026. ASIC stated that the rules would be remade in substantially the same form, with minor administrative updates and extended exemptive relief for derivative transactions resulting from post trade risk reduction exercises, consistent with existing relief for multilateral portfolio compressions. ASIC also proposes to allow transitional relief for certain swaptions to expire on 1 April 2026.

Written feedback is due to ASIC on 28 November 2025.

See: Media Release; CS 33 Proposed remake of the ASIC Derivative Transaction Rules (Clearing) 2015

Payments

Government releases Payment Systems Legislation

On 29 October 2025, the Government invited public feedback on the Payment Systems Legislation Amendment (2025 Measures No. 1) Regulations 2025 (Regulations) and the accompanying Explanatory Statement, which support the Treasury Laws Amendment (Payments System Modernisation) Act 2025 (the Act) that received Royal Assent on 19 September 2025.

The draft Regulations propose amendments to:

• the Payments Systems (Regulation) Regulations 2006;
• the Australian Securities and Investments Commission Regulations 2001; and
• the Corporations Regulations 2001.

The draft Regulations implement reforms to support Schedule 1 of the Act by:

• clarifying the scope of ministerial designation and directions powers;
• prescribing special regulators and their functions and persons authorised to use or disclose information relating to special payment systems; and
• introducing protections from civil liability for special regulators and other prescribed persons.

The Government seeks views from interested parties by 11 November 2025.

See: Submission Page; Exposure Draft Explanatory Statement

Licensing

ASIC launches new breach data dashboard

On 31 October 2025, ASIC launched the public Reportable Situations (RS) dashboard (Dashboard), providing granular data on self-reported breaches by AFS and credit licensees.

The Dashboard offers insights into:

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

The Dashboard seeks to improve customer outcomes and uplift compliance and reporting practices. ASIC’s approach follows consultation on CP 383 and the publication of final settings for RS and internal dispute resolution data.

See: Media Release; Dashboard

Capital Markets

ASIC releases roadmap for capital markets growth

On 5 November 2025, ASIC released its roadmap to promote strong, efficient, and globally competitive capital markets in Australia. The report, Advancing Australia's evolving capital markets: Discussion paper response (REP 823), outlines actions to unlock opportunities and address emerging risks in public and private markets. Some of the key findings from REP 823 include:

Private markets

• Growth in superannuation funds under management in Australia has and continues to be an important structural driver for the growth of private markets;
• Transparency, access to capital by smaller entities, access to investment by smaller investors, and the alignment of incentives and accountabilities in private markets present some unique challenges;
• The growing intersection between banking and non-bank sectors can amplify risks, warranting close monitoring; and
• Failures and poor practices in private credit, especially given the growing participation of retail investors.

Public markets

• Confidence in resilient market infrastructure is a cornerstone of healthy public and financial markets;
• Regulation is seen by some as a contributing factor to the declining of listings, with cumulative effects amplified by public scrutiny. This is exacerbated where listed entities are also subject to additional sectoral obligations such as accountability regimes; and
• The dynamics of public and private markets are shifting due to structural and cyclical factors. Structurally, companies are seeking flexibility and are increasingly turning to abundant private capital with less public scrutiny.

ASIC stated that it supports modernising public markets, including changes to IPOs and disclosure, as well as considering director responsibilities, free float requirements, and facilitating more foreign listings. In private markets, ASIC stated that it seeks enhanced supervision tools, including notifications of wholesale funds, improved data collection, and audited financial reports for wholesale funds, and will issue a catalogue of fund managers’ legal obligations, refresh targeted funds management guidance, and engage with industry bodies to lift standards.

ASIC stated that increased oversight of private markets is essential and that surveillance and enforcement in private credit will continue, with stronger regulatory action considered if practices do not materially improve.

See: Media Release; REP 23

Insurance

APRA refines proposed changes to the capital framework for longevity products

On 29 October 2025, APRA announced that it has commenced a second consultation on modifications to the capital framework for longevity products, including annuities, to support product development and availability while safeguarding policyholder interests. APRA stated that industry feedback from the first round of consultation in June 2025 has informed refinements, including a more principles based approach to capital requirements.

Further industry feedback on the draft prudential standards is due to APRA by 17 December 2025.

See: Media Release; Consultation Page

Fintech

ASIC releases updated guidance on digital assets

On 29 October 2025, ASIC released an updated Information Sheet 225 Digital assets: Financial Products and Services (INFO 225), stating that stablecoins, wrapped tokens, tokenised securities and digital asset wallets are among digital assets that constitute financial products. ASIC stated that many providers will be required to obtain an AFS licence, and announced a sector wide no action position until 30 June 2026 to allow time to transition to licensing, alongside proposed relief for distributors of certain stablecoins and wrapped tokens, and custodians of financial product digital assets.

The finalised INFO 225 now includes 18 worked examples, illustrating ASIC's application of the definition of a financial product to various digital asset use cases. These are grouped as follows:

• facilities for making financial investments;
• interests in managed investment schemes;
• securities;
• derivatives; and
• non-cash payment facilities.

Feedback is due by 12 November 2025. ASIC has stated that it will continue to act against egregious conduct in the sector where significant consumer harm or systemic misconduct is observed.

See: Media Release; INFO 225

Other

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

On 31 October 2025, APRA announced targeted amendments to CPS 230 Operational Risk Management (CPS 230) to address challenges in applying contractual obligations to arrangements with non traditional service providers (NTSPs), such as stock exchanges, payment schemes or clearing and settlement facilities, which often lack formal contracts or use non negotiable terms.

APRA stated that the amendments will clarify expectations on contract uplift and service level monitoring, streamline processes and reduce burden while maintaining risk management obligations.

APRA will conduct an accelerated policy process with a one month consultation to finalise changes before 1 July 2026.

See: Media Release

ASIC highlights financial reporting and audit findings for FY 2024–25

On 31 October 2025, ASIC released Report 819 ASIC’s oversight of financial reporting and audit 2024–25 (REP 819), outlining:

• findings from financial reporting and audit surveillances;
• enforcement and compliance actions against registered company auditors;
• outcomes relating to company financial reports; and
• observations on auditor reporting and voluntary sustainability reporting to assist preparers of mandatory sustainability reports.

ASIC stated that reliable financial information is increasingly important as entities with unlisted assets (including superannuation and private credit funds) continue to play a larger role in Australia, and noted that improvements are needed in financial report and audit quality and auditor independence.

In 2025–26, ASIC will expand audit file reviews to twenty five, enhance selection methods, review sustainability reports for the year ended 31 December 2025, and continue to use its full regulatory toolkit.

See: Media Release

Government consults on financial reporting standard-setters

On 31 October 2025, the Government opened consultation on draft amendments to the Australian Securities and Investments Commission Act 2001 (Draft Legislation) to establish External Reporting Australia (ERA) as a single body responsible for setting accounting, auditing and assurance, and sustainability standards, combining the Australian Accounting Standards Board, the Auditing and Assurance Standards Board and the Financial Reporting Council. The Draft Legislation is guided by flexibility, strengthened accountability and preservation of existing strengths, and is intended to align Australia’s framework with global developments to support investor confidence and market integrity.

Written submissions in response to the Draft Legislation and its explanatory materials is due by 19 December 2025.

See: Media Release; Draft Legislation

ASIC proposes to remake ‘sunsetting’ instrument for generic financial calculators

On 3 November 2025, ASIC invited feedback on remaking ASIC Corporations (Generic Calculators) Instrument 2016/207, which provides relief to providers of generic financial calculators from certain licensing and conduct requirements. ASIC stated that the instrument remains necessary and effective, and proposes amendments to simplify subsection 5(2) and align it more closely with the reportable situations regime, along with minor simplifications.

The legislative instrument is scheduled to sunset on 1 April 2026. A draft instrument is available at CS 34 Proposed remake of generic financial calculators instrument.

Written feedback is due to ASIC on 1 December 2025.

See: Media Release