Financial Services Snapshots
Financial Markets
ASIC publishes ASX Inquiry Panel Final Report
On 2 April 2026, ASIC published the Final Report of the ASX Inquiry Panel. The report follows nine months of analysis, focusing on governance, capability and risk management frameworks and practices across the group.
The Panel conducted stakeholder interviews, reviewed submissions and an expert technical report on the CHESS system, undertook international benchmarking, held focus groups with ASX staff and reviewed relevant documentation. The key observations of 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;
- capability and cultural barriers are hindering transformational change;
- ASX's risk management and compliance practices need to mature; and
- ASX's own market supervision responsibilities to monitor, supervise and enforce compliance with Operating and Listing Rules by participants and listed entities require more reflection.
ASX has submitted a Commitment Plan to ASIC outlining how it plans to deliver the strategic package of reforms agreed with ASIC.
See: Media Release, ASX Inquiry Panel's Final Report
Payments
RBA releases review of Merchant Card Payment Costs and Surcharging
On 31 March 2026, the Reserve Bank of Australia (RBA) published a Conclusions Paper setting out the final decisions of the Payments System Board on the Review of Merchant Card Payment Costs and Surcharging. It was concluded that a package of reforms, including removing surcharging, reducing interchange fees and increasing transparency, would be in the public interest and promote competition and efficiency in the payments system.
The key decisions of the Payments System Board include:
- removing surcharging on debit, prepaid and credit cards on the designated eftpos, Mastercard and Visa card networks;
- lowering the caps on interchange fees paid by Australian business; and
- increasing transparency over the fees charged by card networks and payment service providers to strengthen competition.
The removal of surcharging and reductions in the interchange caps for domestic card transaction will come into effect on 1 October 2026. The introduction of an interchange cap on foreign cards and some changes to payment cost transparency will come into effect on 1 April 2027, allowing the payments industry sufficient time to implement the changes.
The RBA also noted its plan to commence public consultation in mid-2026 to assess the public interest case for regulating areas of the retail payments system that were not covered in this review, including mobile wallets, three-party card networks, 'buy-now, pay-later' services and e-commerce platforms.
See: Media Release, Conclusions Paper
ASIC remakes non-cash payment facilities instrument
On 2 April 2026, ASIC announced the remake of 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 extends the relief previously provided by ASIC Corporations (Non-cash Payment Facilities) Instrument 2016/211 until April 2031. This instrument remakes 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 has noted that the need for the instrument will be revisited once the payments licensing reforms take effect.
See: Media Release, ASIC Corporations (Non-cash Payment Facilities) Instrument 2026/167, Payment licensing reforms
Banking
APRA releases letter on liquidity treatment of deposits placed with settlement service providers
On 2 April 2026, APRA released a letter to Minimum Liquidity Holdings (MLH) ADIs on the liquidity treatment of deposits placed with settlement service providers (SSP).
APRA is aware of MLH ADIs adopting inconsistent liquidity treatment for deposits placed with SSPs.
APRA is seeking to consult with MLH ADIs on a draft FAQ to clarify the treatment and ensure consistency between MLH ADIs. APRA is also interested in any feedback from MLH ADIs regarding the impact of this clarification on entities and whether any additional guidance is required.
See: Media Release, APRA Letter
Licensing
Legislation passed to introduce licensing exemptions for Foreign Financial Service Providers
On 1 April 2026, the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025 (Cth) was passed which included new statutory licensing exemptions for foreign financial services providers (FFSPs). The new exemptions are:
- the professional investor exemption;
- the comparable regulator exemption; and
- the market maker exemption.
These exemptions will come into effect on 9 April 2027. Until then, FFSPs can rely on existing sufficient equivalence and limited connection exemptions, which are currently due to expire on 31 March 2027.
See: Ashurst Publication, Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Act 2025
Insurance
Legislation passed to ban the use of adverse genetic testing results in life insurance
On 1 April 2026, the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025 (Cth) was passed. This legislation bans life insurers from using adverse genetic testing results to deny or limit life insurance cover. The ban will not:
- prevent individuals from volunteering genetic test results with written consent, and the use of these volunteered results in underwriting where this would not adversely impact the insurance offer or policy terms; or
- limit the existing ability to access and use certain information for underwriting life insurance including the existence of signs, symptoms or diagnosed diseases.
There are civil penalties and criminal offences for non-compliance which will be regulated by ASIC.
See: Media Release, Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Act 2025
Superannuation
Treasury commences consultation to strengthen consumer protection in the superannuation system
On 8 April 2026, Treasury opened its consultation on enhancing member protections in the superannuation system.
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.
Consultation closes on 22 May 2026.
See: Media Release, Consultation Page, Consultation Paper
Other
APRA releases consultation on remaking Level 3 conglomerate standards
On 31 March 2026, APRA released a consultation package on remaking Level 3 conglomerate prudential standards. APRA is proposing to remake the standards with minor amendments to ensure the standards remain current.
Written submissions are due by 29 May 2026.
See: Media Release, Consultation Page, Consultation Letter, Marked Up Prudential Standard Aggregate Risk Exposures, Marked Up Prudential Standard Intra-Group Transactions and Exposures, Marked Up Prudential Standard Audit and Related Matters
APRA finalises changes to the capital treatment of longevity products to improve retirement outcomes
On 31 March 2026, APRA finalised amendments to its prudential standards on the capital treatment of longevity products to strengthen the market for retirement income products.
The key change is the introduction of an option for insurers to use an advanced illiquidity premium (AILP) when determining capital requirements for longevity products. To underpin the AILP option, APRA has also introduced additional risk controls relating to the governance, reporting and asset composition of portfolios to which it is applied.
The reforms will come into effect on 1 July 2026.
See: Media Release, Consultation Page, Response to finalising amendments to the capital treatment for longevity products
ASIC consults on guidance to appoint a reviewing liquidator
On 7 April 2026, ASIC announced that it is seeking feedback on a proposal to release a new information sheet on its discretionary power to appoint a reviewing liquidator to a company in external administration.
By way of background, people with a financial interest in a company in external administration, or are an officer of the company, can apply to ASIC to have a reviewing liquidator appointed.
The draft Information Sheet titled "Corporate insolvency: ASIC's power to appoint reviewing liquidators" is intended to provide greater clarity to liquidators and potential applicants.
Consultation closes on 5 May 2026.
See: Media Release, Consultation Page, Draft Information Sheet
Other authors: Julia Ryan, Graduate
