Financial Services Snapshots

Funds management

ASIC proposes to remake relief instrument for managed investment product consideration

On 5 August 2025, ASIC announced its intention to remake the ASIC Corporations (Managed Investment Product Consideration) Instrument 2015/847, which is due to expire on 1 October 2025. This instrument provides regulatory relief concerning the pricing of interests for responsible entities of managed investment schemes registered before 1 October 2013, excluding time-share schemes.

ASIC has reviewed the instrument and determined that it remains effective and necessary. As a result, ASIC is proposing to extend the instrument for a further five years to ensure the continuation of the relief for affected entities. The proposed remake includes minor amendments intended to:

• simplify the requirements for documenting exercises of discretion affecting pricing;
• reduce the level of prescription in documentation provisions; and
• ensure alignment with ASIC's current drafting style.

ASIC is inviting submissions on the proposal, with feedback requested by 29 August 2025.

See: Media Release; ASIC Corporations (Managed Investment Product Consideration) Instrument 2015/847

Banking

Implementation of recommendations of the small and medium banks review

On 6 August 2025, the Council of Financial Regulators (CFR) released a report on its review into competition among small and medium-sized banks (Report), which sets out 9 recommendations for the Government and 9 actions for agencies involved in this review. These recommendations and action items are intended to target more proportionate regulation, help overcome barriers to entry and to facilitate sustainability and scale, and increase funding access.

Treasury issued its response to the Report, and

The key points identified in Treasury's response are as follows:

• the Government has agreed in principle to eight of nine recommendations from the review;
• all nine regulator actions have been endorsed, with further consultation to be undertaken on a lighter-touch framework for smaller banks; and
• implementation will involve close collaboration with regulators and the ACCC.

On 6 August 2025 and 7 August 2025 , ASIC and APRA announced it will implement recommendations from the Report.

Key actions that ASIC has committed to undertake include:

• reduce the frequency of Internal Dispute Resolution (IDR) data reporting for small banks from every six months to every twelve months; and
• establish ongoing reviews of regulatory reporting requirements for small and medium-sized banks.

ASIC will apply the reduced IDR reporting frequency from the next submission window in January-February 2026, with a no-action position in place until system changes are finalised in 2027.

Key actions that APRA will implement to better support competition from small and medium-sized-banks include:

• introduce a three-tiered regulatory framework for large, medium, and small banks;
• simplify the process for banks to use internal ratings based approach to calculate risk-weighted assets;
• provide clearer guidance on minimum capital requirements; and
• streamline the bank licensing framework to make it more transparent and efficient.

APRA will also work with Government and other regulators on further reforms, including a possible lighter-touch regime for very small banks.

See: ASIC Media Release; APRA Media Release; CFR Report

Superannuation

Government seeks feedback on retirement phase of superannuation

On 7 August 2025, the Government released two consultation papers focused on improving the retirement phase of superannuation. The objective is to ensure the retirement phase receives policy focus and product development comparable to the accumulation phase.

The key proposals are as follows:

• Best practice principles for retirement income solutions: The Government is seeking to provide clear guidance to the superannuation industry, encouraging the development of high-quality retirement income products that better meet the needs of retirees.
• Retirement reporting framework: A new framework is proposed to enhance transparency and more common understanding for success in the retirement phase. Under this system, superannuation funds would be required to report on retirement outcomes, with APRA collecting and publishing this data.

The Government is seeking submissions from superannuation funds, industry participants, workers, retirees, and the public. Consultation on the retirement reporting framework closes on 5 September 2025, and on best practice principles on 18 September 2025.

See: Media Release; Consultation Paper on Best Practice Principles; Consultation Paper on Retirement Reporting Framework

ASIC launches review of superannuation investment disclosure requirements

On 13 August 2025, ASIC announced a review of disclosure requirements for superannuation fund investments, with a particular focus on property assets. The review aims to assess whether Regulatory Guide 97 Disclosing fees and costs in PDS' and periodic statements (RG 97) may be discouraging superannuation funds from investing in property.

Currently, RG 97 requires disclosure of various transactional and operational costs, including stamp duty, for unlisted property investments, while different rules apply to listed property assets. Concerns have been raised that the requirement to disclose stamp duty payments as transaction costs under RG 97 can negatively affect performance test results, potentially deterring property investment by superannuation funds. The review will consider whether these requirements remain appropriate and if changes could encourage greater investment in property and private credit.

The review will also consider whether class order relief should be provided to ensure consistency in the disclosure of private credit arrangements, both internally and externally managed. Such a change could lower costs for superannuation members and support safe credit growth for businesses.

The review will be conducted by ASIC in collaboration with industry representatives and Treasury, with a report due by 30 November 2025.

See: Media Release; RG 97

Insurance

ASIC remakes incidental retail cover legislative instrument

On 13 August 2025, ASIC announced it will extend the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716 for a further five years, beyond its original expiry in August 2025. This instrument exempts insurers and brokers from certain retail client obligations under the Corporations Act 2001 (Cth) where retail cover is included as part of wholesale insurance contracts.

The stated purpose of the extension is to reduce regulatory burden and minimise compliance costs for businesses. ASIC's review found the instrument to be effective and appropriately targeted, with specific conditions to ensure that any retail cover remains incidental to the wholesale product. The exemption does not apply where the retail cover is optional or requires a separate purchase decision by the client.

ASIC will continue to monitor the operation of the instrument, using regulatory experience and industry feedback to ensure it remains fit for purpose.

See: Media Release; ASIC Corporations (Incidental Retail Cover) Instrument 2022/716

AML/CTF

AUSTRAC calls on independent remitters to review registrations

On 6 August 2025, AUSTRAC released an update calling on remittance businesses to voluntarily withdraw their registrations or risk cancellation.

Businesses require AUSTRAC registration to legally offer money transfer services. In doing so, they must comply with obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act. Such obligations include maintaining up to date ownership and activity status.

Inactive businesses raise a risk of being taken over for ML/TF purposes, used by criminals to process illicit funds. AUSTRAC consider the remittance sector to be high risk due to its exposure to cash and the fast, low-cost way funds can be transferred across borders.

Consumers are able to confirm whether a money transfer provider is registered by searching AUSTRAC's remittance sector register.

See: Media Release