Financial Services Snapshots
14 October 2025
Financial Markets
RBA releases Financial Stability Review
On 2 October 2025, the RBA released its October 2025 Financial Stability Review (the Review). The RBA highlights that the main threats to stability stem from international sources, including high government debt in major economies, stretched global asset valuations, and increased geopolitical and operational risks.
In the Review, the RBA stresses the importance of maintaining prudent lending standards and strengthening operational resilience as the financial system becomes more digital and interconnected.
See: Media Release
Payments
RBA releases variation to the Access Regime for the ATM system
On 17 September 2025, the RBA approved minor amendments to the Access Regime for the ATM System (the Access Regime), effective 1 October 2025.
The Access Regime, first introduced in 2009, regulates interchange fees and the terms for establishing direct connections between ATM system participants. The new Access Regime, developed in consultation with industry stakeholders, will supersede the Access Code and introduce updated governance and subscription arrangements, with AusPayNet assuming sole administrative responsibility following the deregistration of ATM Access Australia Limited.
The RBA has emphasised that the amendments are minor and technical in nature, with no substantive change to the rights and obligations of industry participants. The main differences relate to governance, administration, and fee arrangements under the new standard. The RBA considers the changes to be in the public interest and consistent with the ongoing objectives of promoting efficiency and competition in the ATM system.
The Access Regime and its variation remain exempt from sunsetting and disallowance to ensure commercial certainty and continuity in the ATM system. The RBA will continue to review the regime periodically to ensure it remains fit for purpose.
See: Media Release; Access Regime for the ATM System Variation 2025; Explanatory Statement for the ATM System Variation 2025
Financial Advice
ASIC urges financial advisers to update register before 2026 deadline
On 30 September 2025, ASIC issued a reminder to financial advisers and Australian Financial Services (AFS) licensees to urgently review and update adviser details on the Financial Advisers Register before the 1 January 2026 compliance deadline. Under section 921B(2) of the Corporations Act 2001 (Cth), advisers must satisfy specific qualification requirements to continue providing personal advice to retail clients.
ASIC has emphasised that failure to comply with these obligations may result in regulatory action. ASIC will continue to monitor industry compliance closely and has indicated it may take further steps if necessary to ensure all advisers meet the required standards and that the Financial Advisers Register remains up to date.
See: Media Release
Investment Funds
ASIC remakes relief instrument for managed investment product consideration
On 29 September 2025, ASIC announced the renewal of its legislative instrument that modifies the requirements for pricing interests in managed investment schemes (excluding time-share schemes) that were registered before 1 October 2013. The ASIC Corporations (Managed investment product consideration) Instrument 2025/629 (ASIC Instrument 2025/629) extends the relief previously provided under ASIC Corporations (Managed investment product consideration) Instrument 2015/847 (ASIC Instrument 2015/847), with minor amendments. This relief sunsets on 1 October 2025.
The changes include:
- Simplified documentation: The new instrument simplifies requirements for documenting exercises of discretion affecting the pricing of interests, reducing prescription and aligning with the approach in ASIC Corporations (Discretions for Setting the Issue Price and Withdrawal Price of Interests in Managed Investment Schemes) Instrument 2023/693 (ASIC Instrument 2023/693).
- Market-neutral extension: The relief now extends to schemes with interests quoted on financial markets operated by Cboe Australia Pty Ltd, following feedback to ensure a more market-neutral drafting.
ASIC consulted on the proposal to remake the relief and considered the relief to be operating effectively and efficiently, and as a necessary part of the legislative framework. The relief has been remade for a further five years.
See: Media Release
Superannuation
ASIC review highlights need for improved super fund financial reporting and audit quality
On 30 September 2025, ASIC published its review of super fund financial reporting and audit practices, identifying significant inconsistencies and areas requiring improvement. Report 816 Accounting for your super: ASIC's review into the financial reporting and audit of super funds (REP 816) details the outcomes of ASIC's examination of financial reports from 60 registrable superannuation entities (RSEs) for the year ended 30 June 2024, as well as five RSE audit files.
The key findings from REP 816 are as follows:
- Inconsistent investment valuation and disclosure: The review identified a lack of consistency in the methodologies used by superannuation funds to value unlisted investments, resulting in challenges for comparability and reliability of reported figures.
- Limited expense disclosure: Many funds failed to separately disclose sponsorship and advertising expenses, often due to a narrow interpretation of materiality.
- Audit weaknesses: Auditors were found, in many cases, not to have obtained sufficient evidence to support investment valuations and did not robustly challenge fund manager valuations. The use of high materiality thresholds was noted to contribute to less comprehensive audit procedures.
ASIC has provided feedback to auditors and indicated ongoing monitoring and enforcement of financial reporting and audit standards within the superannuation sector. ASIC has also highlighted its willingness to take enforcement action in instances of significant non-compliance.
This review forms part of a wider regulatory initiative aimed at enhancing transparency, governance, and audit quality in the superannuation industry, with further reports on auditor independence and audit quality anticipated.
See: Media Release
Other
ASIC outlines approach to breach and complaints data publications
On 25 September 2025, ASIC published a feedback summary detailing its approach to the public release of Internal Dispute Resolution (IDR) and Reportable Situations (RS) data. This follows industry consultation on CP 383 Reportable situations and internal dispute resolution data publication (CP 383), with ASIC receiving 47 submissions.
The key outcomes are as follows:
- IDR Data: ASIC will proceed with publishing firm-level IDR data. Adjustments have been made to how the data will be presented, including enhanced privacy protections, data comparisons, and additional explanatory material to support contextualisation.
- RS Data: Contrary to initial proposals, ASIC will not publish firm-level RS data at this stage. Instead, RS data will be published in aggregate form, reflecting concerns about the maturity of the RS regime and recent changes to reporting obligations.
The publication of firm-level IDR data is intended to enhance transparency within the financial sector, improve their internal practices, and provide valuable information to consumers. This approach is designed to complement the existing publication of firm-level external dispute resolution (EDR) data by the Australian Financial Complaints Authority (AFCA).
The RS dashboard will be published in October 2025, while the IDR dashboard is scheduled for release later in 2025.
See: Media Release; Summary of feedback to CP 383 and ASIC's response
ASIC urges continued improvement in hardship support
On 25 September, ASIC released Report 815 Hardship, not so hard to get help (REP 815), highlighting progress in lenders' approaches to financial hardship support since its 2024 review, which was published in Report 782 Hardship, hard to get help: Findings and actions to support customers in financial hardship (REP 782).
REP 815 identified that examples of improvements by lenders include:
- increased customer awareness of available assistance;
- updates to policies and training materials;
- better identification of hardship notices;
- greater flexibility in how information is collected from customers; and
- removal of unnecessary requests for large amounts of customer information.
Despite these positive changes, ASIC remains concerned about the quality and consistency of responses, noting that some lenders still rely on standardised rather than tailored solutions for customers in hardship. Enforcement action has already been taken against several lenders, including significant penalties for major banks that failed to meet their obligations.
ASIC will continue to monitor the sector closely, reviewing independent assurance reports and requiring action plans from lenders where necessary.
See: Media Release
ASIC review reveals many auditors failing to demonstrate compliance with auditor independence obligations
On 7 October 2025, ASIC released the findings from its review into auditor independence and conflict of interest compliance, as detailed in Report 817 Building trust: Auditor compliance withindependence and conflict of interest obligations (REP 817). The review assessed 48 auditors and 19 firms, identifying a number of likely breach of relevant obligations.
The review highlighted notable deficiencies across audit firms of varying sizes. Key observations included:
- Independence breaches: Fifteen auditors were found likely to have contravened specific independence rules, such as mandatory audit partner rotation, restrictions on certain relationships, and prohibitions on providing non-audit services. Among these, nine auditors did not adequately comply with rotation requirements for listed entities, and five auditors maintained prohibited relationships with clients, including one instance where an individual acted as both auditor and officeholder.
- Failure to self-report: None of the auditors identified as likely in breach had voluntarily reported these matters to ASIC, despite previous reminders regarding their obligations to do so.
ASIC emphasised that auditor independence is fundamental to audit quality and stakeholder trust. ASIC expects auditors to move beyond a “tick-a-box” approach and critically assess both actual and perceived threats to independence. ASIC will increase audit surveillances in 2025-26, with a focus on files where independence concerns are identified.
This is the second report released as part of ASIC's expanded initiative to enhance financial reporting and audit quality. It follows the earlier review of superannuation fund audits, the findings of which were published in Report 816 Accounting for your super: ASIC's review into the financial reporting and audit of super funds. A further annual report on financial reporting and audit surveillance is scheduled for release later in October.
See: Media Release
ASIC annual report on its enforcement and regulatory focus
On 8 October 2025, ASIC released its Annual Report for the 2024-25 financial year, highlighting significant developments in its regulatory and enforcement activities.
The key themes from the report are as follows:
Enforcement activity and operational enhancements
The report records a marked increase in enforcement, with a 50% rise in investigations and a 20% uptick in new civil proceedings. ASIC completed 829 targeted surveillances and issued over $120 million in penalties.
Regulatory initiatives and market oversight
Key regulatory initiatives included a discussion paper on the evolution of Australia's capital markets, focusing on integrity and investor confidence as private markets expand. The Regulatory Simplification Consultative Group was established to reduce regulatory complexity.
Superannuation and consumer protection
ASIC took enforcement action in the superannuation sector to address governance failures and protect members. Reports on hardship support highlighted improvements by lenders, such as better customer awareness, policy updates, and more flexible hardship assistance.
Commitment to market integrity and simplification
ASIC's activities throughout the year reinforced its focus on market integrity, consumer protection, and regulatory simplification. Reforms included streamlining IPO processes, simplifying disclosure requirements, and strengthening governance frameworks to protect minority shareholders and improve board oversight.
