Financial Services Snapshots

Payments

Consultation on draft vision for Account-to-Account Payments in Australia

On 30 April 2026, the Account-to-Account Payments Roundtable (Roundtable) released a public consultation on the draft vision for the future of account-to-account payments in Australia.

The Roundtable includes the Australian Payments Network, Australian Payments Plus, the RBA and Treasury. The draft vision has been developed by the Roundtable following engagement with stakeholders and drawing on consultation on the future of account-to-account payments, including:

• desired long-term outcomes for Australia's account-to-account payment system, including that it remains safe, reliable, low cost, easy to use, and inclusive for consumers, businesses and government agencies; and
• qualities that the system needs to demonstrate to deliver these outcomes.

The Roundtable is seeking input on how the account-to-account payments system should continue to develop to remain a trusted national asset and meet the needs of its users.

Submissions close on 22 May 2026.

See: Media Release, Consultation Paper

Banking

APRA finalises amendments to CPS 230 Operational Risk Management

On 30 April 2026, APRA announced that it has finalised targeted amendments to Prudential Standard CPS 230 Operational Risk Management, CPG 230, and the corresponding Material Service Provider Register template.

The amendments introduce limited exemptions from specific contractual requirements in CPS 230 for material arrangements within certain categories of non-traditional service providers, like central banks and clearing and settlement facilities, where contractual compliance is not practicable.

These amendments will come into effect on 1 July 2026.

See: Media Release, Operational risk management – consultation page, Amended CPS 230, Amended CPG 230, Amended MSP Register

APRA releases revised FAQs on APS 221 Large Exposures

On 5 May 2026, APRA announced that it has revised the Frequently Asked Questions (FAQs) for Prudential Standard APS 221 Large Exposures. The revisions include:

• clarification on APRA's expectations on how exposures to structured vehicles should be calculated and reported using the stored value look through methodology;
• removal of FAQs that are no longer required; and
• updated references to the prudential standards.

ADIs must ensure they report in accordance with the revised FAQs by 31 December 2026.

See: Media Release, Revised FAQs for APS 221

Licensing

Deadline approaching for digital asset businesses to apply for a licence

On 4 May 2026, ASIC released a reminder that its no-action position for the transition to licensing for digital asset businesses is expiring on 30 June 2026. Providers of financial services involving digital asset financial products need to consider whether they require an AFSL (or variation to their existing AFSL) and apply by 30 June 2026.

Businesses that require an Australian market licence or Australian clearing and settlement facility licence must notify ASIC in writing of their intention to apply and hold a pre-meeting with ASIC by 30 June 2026.

See: ASIC Media Release, ASIC class no-action letter for digital asset businesses, ASIC Guidance on digital assets, Information Sheet 225

ASIC proposes to remake relief from dollar disclosure and AFS licensing requirements

On 5 May 2026, ASIC announced it is seeking feedback on its proposal to remake two legislative instruments that provide relief from dollar disclosure and certain AFS licensing requirements for a period of five years.

The legislative instruments, expiring on 1 October 2026, include:

• ASIC Corporations (Disclosure in Dollars) Instrument 2016/767 (ASIC Instrument 2016/767); and
• ASIC Corporations (Financial Product Advice – Exempt Documents) Instrument 2016/356 (ASIC Instrument 2016/356).

ASIC Instrument 2016/767 provides exemptions from requirements to disclose in a Product Disclosure Statement, Statement of Advice or periodic statement certain information in Australian dollars, which would otherwise be required by provisions in Parts 7.7 and 7.9 of the Corporations Act 2001. The instrument does not currently provide these exemptions for discretionary risk products issued by discretionary mutual funds. ASIC is proposing to extend these exemptions to certain risk products provided by discretionary mutual funds.

ASIC Instrument 2016/356 provides licensing relief to entities that give general advice for financial products in certain documents. These include explanatory statements for foreign scheme of arrangements, and offer documents for control transactions, that are regulated in a specified foreign market.

Submissions close on 1 June 2026 at 5.00 pm.

See: Media Release, ASIC Instrument 2016/767, ASIC Instrument 2016/356, Simple Consultation 51

Insurance

APRA consults on amendments to reporting standards for life insurers

On 24 April 2026, APRA released a consultation package on the transition of life insurance data collections from Direct to APRA to APRA Connect. APRA has proposed to update the reporting standards to ensure consistency with other collections in APRA Connect.

APRA is seeking feedback on proposed amendments to Reporting Standard LRS 112.3 Related Party Exposures, Reporting Standard LRS 114.2 Derivatives Activity and Reporting Standard LRS 114.3 Off-balance Sheet Business. These reporting standards will be updated to adopt the same approach to reporting instructions, taxonomy and definitions already used in reporting standards for life companies in APRA Connect. APRA has indicated that there are no material changes to the data life companies will be required to report.

Written submissions are due by 3 July 2026.

See: Media Release, Letter to Industry

Superannuation

ASIC announces stamp duty disclosure changes

On 1 May 2026, ASIC announced changes to stamp duty and portfolio holdings disclosure requirements for the superannuation and investment management sectors following industry consultation. The changes include:

• Stamp duty paid in one year will be disclosed over the following seven years in fees and costs summaries in Product Disclosure Statements rather than as an annual sum. This will be implemented through a change to ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070.
• New class order relief for superannuation trustees, aligning portfolio holdings disclosure obligations for internally-managed private debt with externally-managed private debt.

These changes stem from a targeted review of superannuation investment disclosure settings and a public consultation.

ASIC has also announced plans to review Regulatory Guide 97 Disclosing fees and costs in PDSs and periodic statements to ensure its guidance remains robust and relevant.

See: Media Release, Instrument 2019/1070, ASIC Corporations (Portfolio Holding Disclosure) Instrument 2026/338, ASIC Corporations (Amendment) Instrument 2026/337, Proposed relief for disclosure of private debt arrangements, Proposed change to stamp duty disclosure requirements, Regulatory Guide 97 review and consultation

Other

APRA calls for step-change in how banks, insurers and superannuation trustees manage AI-related risks

On 30 April 2026, APRA published a letter to industry warning that governance, risk management, assurance and operational resilience practices are not keeping pace with the scale, speed and complexity of AI adoption.

The letter makes a number of observations, reflecting issues identified by APRA from a deep-dive exercise on a sample of the largest banks, insurances and superannuation trustees, including:

• AI use is accelerating across all APRA-regulated industries with entities moving from experimentation towards more operationally embedded and customer-facing applications. However, governance arrangements have not matured at the same pace.
• Boards have strong interest in AI’s potential benefits but many lack the technical literacy required to provide effective challenge to management on AI-related risks and oversight.
• Heightened concentration risk was noted with some entities heavily dependent on a single provider for multiple AI use cases and gaps in contingency planning.
• AI functionality is often embedded within broader software platforms or developer tooling, reducing transparency over where and how models are trained, updated or constrained and limiting entities' ability to completely assess and manage risks.
• AI risks can cut across multiple domains, such as operational resilience, cyber and information security, privacy and procurement. Existing change and assurance management approaches are often fragmented and may not effectively provide sufficient assurance for AI.

APRA also set out its expectations in relation to how entities should respond to AI-related risks, including:

• establishing consistent governance arrangements (e.g. ownership and accountability across the AI lifecycle, human involvement in high-risk decisions);
• managing supplier risks (e.g. maintaining visibility over the full AI supply chain, contractual and governance arrangements which provide transparency, auditability and assurance over AI services);
• adopting effective assurance mechanisms and approaches (e.g. globally recognised control frameworks and integrated assurance across cyber security, data governance, model performance risk, operational resilience, privacy and conduct risks).

See: Media Release, Letter to Industry, Frontier models and their impact on cyber security

ASIC proposes to remake legislative instrument about client money held in cash common funds

On 5 May 2026, ASIC announced that it is seeking feedback on its proposal to remake a legislative instrument to allow AFS licensees to pay clients' money into a cash common fund.

ASIC Corporations (Client money – Cash common funds) Instrument 2016/671 (Instrument 2016/671) is due to expire on 1 October 2026. Instrument 2016/671 enables client money received by an AFS licensee to be deposited into a cash common fund if the fund is also a registered scheme. It gives flexibility to licensees in dealing with client money while retaining the consumer protections provided by section 981B of the Corporations Act 2001.

ASIC assessed that this instrument is operating effectively and still forms a necessary and useful part of the legislative framework. ASIC proposes to remake Instrument 2016/671, with its effect remaining unchanged.

Submissions close on 19 May 2026 at 5.00 pm.

See: Media Release, ASIC Corporations (Client money - Cash common funds) Instrument 2016/671, Consultation Page

Treasury announces new release of the Regulatory Initiatives Grid

On 6 May 2026, Treasury announced the latest release of the Regulatory Initiatives Grid (RIG) which aims to streamline regulation across Australia's financial system.

The RIG sets out indicative regulatory reform priorities and initiatives that will materially affect the financial sector over the next two years. This edition of the RIG sets out four major categories of initiatives planned over the next 24 months, including:

• Policy development – this includes 11 initiatives, e.g. enhancing member protections in the superannuation system and reforms to streamline and strengthen Australia's foreign investment framework.
• Development of legislation, regulations and instruments – this includes 34 initiatives including enhancements to the innovative income stream regulations and superannuation stapling and advertising ban.
• Ongoing program implementation – this includes 23 initiatives including clearing and settlement facility resolution guidance and climate-related financial disclosures.
• Review and evaluation – this includes 21 initiatives including capital for annuities and targeted amendments to standardised credit risk capital framework.

See: Media Release, Regulatory Initiatives Grid – April 2026, Regulatory Initiatives Grid – Interactive Dashboard

APRA temporarily withdraws Guidelines on Recognition of an External Credit Assessment Institution

On 7 May 2026, APRA announced that it has temporarily withdrawn its Guidelines on Recognition of an External Credit Assessment Institution (the Guidelines). APRA is currently reviewing the Guidelines, noting they were last updated in 2013, and will provide a further update once the review is complete.

See: Media Release

Other authors: Julia Ryan, Graduate.