Financial Services Snapshots

Payments

The RBA's stance on technology and the future of digital currency

On 3 September 2025, the Governor of the Reserve Bank of Australia, Michele Bullock, delivered an address which discussed the RBA's perspectives on cyber security, central bank digital currencies, artificial intelligence, financial stability, and the evolving economic landscape. The session provided detailed insights into the RBA's strategic priorities and approach to technological innovation.

Key points addressed include:

• Cyber security and resilience: The ongoing threat of cyber attacks to the RBA was highlighted, given its role in operating critical economic infrastructure. It was acknowledged that no organisation is immune to cyber threats, emphasising a risk-based, vigilant approach.
• Central Bank Digital Currency (CBDC): The RBA is actively researching CBDCs, particularly for wholesale markets and asset tokenisation, but it was however noted that the RBA does not see an immediate need for a retail CBDC with Australia's current payments infrastructure. The financial stability risks of an interest-bearing CBDC were noted, as well as potential safeguards like negative rates or holding limits.
• Artificial intelligence: The RBA is leveraging AI to enhance research, data analysis, and operational efficiency, including tools for text analytics and knowledge management. The RBA is investing in AI capabilities while maintaining critical oversight to ensure reliability.
• Technological innovation in asset markets: The potential of distributed ledger technology and stablecoins to transform asset markets, such as enabling the fractionalisation and digital trading of government bonds was discussed. The RBA is actively exploring these innovations through projects like Project Acacia, which examines the role of digital currency in supporting asset market development.

See: Media Release

Insurance

AFCA opens consultation on life insurance approach documents

On 8 September 2025, AFCA commenced a consultation process seeking stakeholder feedback on two new Approach documents relating to life insurance complaints. The AFCA Approach documents are intended to provide clarity and transparency regarding AFCA's complaint investigation and decision-making processes.

The documents under consultation are:

• The AFCA Approach to the duty to take reasonable care not to make a misrepresentation – life insurance (New), which outlines how AFCA considers complaints regarding the duty to take reasonable care not to make a misrepresentation in life insurance.
• The AFCA Approach to non-disclosure and misrepresentation – life insurance (New), which details AFCA's approach to complaints involving the duty of disclosure and the requirement not to make a misrepresentation in life insurance.

Both documents reflect legislative amendments to the Insurance Contracts Act 1984 (Cth) that took effect in 2021 and apply to non-superannuation complaints under AFCA's Rules. AFCA has invited stakeholders to review the documents and provide feedback by 10 October 2025.

See: Media Release

Other

ASIC seeks feedback on regulatory simplification

On 3 September 2025, ASIC published its first Regulatory Simplification report (Report), announcing the removal of over 9,240 pages of regulation since the start of the year and inviting further proposals to streamline regulatory requirements. The initiative forms part of ASIC's ongoing effort to make regulation clearer, more accessible, and easier to comply with, while maintaining robust consumer protections.

The key measures outlined in the Report include:

• Improved access to regulatory information: ASIC has launched a redesigned website, significantly reducing content volume, and introduced regulatory roadmap pilots tailored for small-company directors and financial advice providers to assist in navigating their obligations.
• Reduced complexity in regulatory instruments: ASIC is piloting the consolidation and simplification of 23 legislative instruments, targeting a reduction of at least 65 pages, in addition to the 181 pages of guidance already removed.
• Streamlined interactions with ASIC: Practical steps have been taken to facilitate digital engagement, including the transition of 'paper-only' documents to email lodgement and the introduction of electronic signatures on all forms from 1 October 2025, with a view to fully digital lodgement in the future.

The Report also highlights areas of potential law reform identified through stakeholder feedback, with ASIC actively participating in discussions with Treasury to explore broader opportunities for regulatory improvement. ASIC is seeking further feedback on its simplification initiatives and welcomes submissions from stakeholders by 15 October 2025.

See: Media Release; Report 813 Regulatory Simplification

ASIC publishes regulatory reform correspondence

On 4 September 2025, ASIC published its correspondence with the Treasurer Jim Chalmers related to regulatory reform opportunities. In response to a government request for substantial, measurable action, ASIC details a multi-year agenda focused on streamlining regulation, cutting business costs, and supporting investment.

The key initiatives include a major overhaul of ASIC's website for easier access to regulatory information, simplification and consolidation of guidance and legislative instruments, and the introduction of sector-specific regulatory roadmaps. ASIC is also upgrading its registry services to make company and business name registrations more efficient and secure, while expanding digital channels for stakeholder engagement.

Other measures include a two-year fast-tracked IPO trial, targeted relief for licensees under the reportable situations regime, and a pragmatic approach to supervising new climate-related disclosure requirements. ASIC is also strengthening coordination with other regulators to reduce duplication and regulatory burden across the industry.

See: Media Release; Letter from ASIC to the Treasurer

APRA publishes regulatory reform correspondence

On 4 September 2025, APRA published correspondence addressed to Treasurer Jim Chalmers and Finance Minister Katy Gallagher, setting out nine priority aimed at enhancing productivity while safeguarding the stability of Australia's financial system.

The key actions that APRA has committed to are summarised in the table below:

The correspondence outlines a balanced approach to regulatory efficiency and transparency, with a focus on lowering compliance costs, simplifying processes, and supporting innovation across the financial sector. Further details are available in APRA's Corporate Plan 2025-26.

See: Media Release; APRA letter to Treasurer Chalmers and Minister Gallager, 31 July 2025; APRA letter to Treasurer Chalmers and Minister Gallager, 12 August 2025.