Financial Services Snapshots 

Capital Markets

ASIC releases a progress update on advancing Australia's public and private markets

On 22 September 2025, ASIC published a progress update on the evolution of Australia's capital markets, highlighting the rapid growth of private markets and ongoing efforts to maintain strong integrity and investor confidence across both public and private sectors.

The update follows extensive industry engagement in response to ASIC's February 2025 Discussion Paper: Australia's evolving capital markets. The key points from the update are as follows:

Growth in private markets

The key practices that ASIC encourages include:

• regular fund reporting;
• clear disclosure of fees and risks;
• transparency in related-party transactions; and
• consistent use of investment and real estate terminology.

ASIC also observed that areas requiring improvement include remuneration structures, related-party transactions, valuation practices, liquidity management, inconsistent reporting, unclear definitions, and concentration risks, particularly in real estate. ASIC has already taken enforcement action, including issuing stop orders and launching investigations into serious misconduct. Ongoing surveillance will inform further regulatory guidance and enforcement actions, with consolidated findings and guiding principles to be released in November.

Public markets reforms

In the public markets, ASIC is prioritising the streamlining of IPO processes to reduce complexity and improve efficiency for issuers and investors alike. Efforts are underway to simplify disclosure requirements, enhance the quality of information provided to the market, and ensure that governance frameworks are fit for purpose. ASIC is also reviewing existing regulations to identify further opportunities for improvement, especially in relation to board oversight and protecting minority shareholders. Additional updates are expected in November.

See: Media Release

Banking

APRA responds to consultation on minor proposals for instruments relating to section 66 of the Banking Act

On 17 September 2025, APRA released its response to the consultation on minor proposals concerning instruments under section 66 of the Banking Act 1959 (Cth). The proposals relate to exemption and determination instruments due to sunset in 2025 or requiring updates to reflect current regulatory practice.

The main proposals and outcomes are summarised below.

• Banking exemption No. 1 of 2018:
  APRA proposed to remake this instrument, expanding exemptions for foreign banks issuing wholesale securities to include foreign bank holding companies and multilateral development banks. Respondents supported the proposal and suggested further expansion. APRA will consider these suggestions and provide an update in early 2026.
• Banking (restricted word or expression) determination No. 1 of 2015:
  APRA proposed to remake this instrument, which restricts the use of 'credit co-operative', without change before its sunsetting on 1 October 2025. The proposal was supported and the instrument has been finalised, effective 16 September 2025.
• Banking (restricted word or expression) No. 2 of 2015 - Consent regarding “Offshore Banking Unit”:
  APRA proposed to allow this instrument, which provides conditional consent for offshore banking units. The proposal was supported and the instrument will sunset on 1 October 2025.

See: Media Release; Consultation Response

ASIC reduces complaints reporting frequency for small banks

On 24 September 2025, ASIC announced a no-action position to immediately reduce the frequency of internal dispute resolution (IDR) data reporting for small banks, moving from a six-monthly to an annual reporting requirement. This adjustment follows a recommendation from the Council of Financial Regulators (CFR) as part of its Review of Small and Medium-Sized Banks, and is aimed at lowering regulatory costs for small banks and enhancing their competitiveness relative to larger institutions.

ASIC has chosen to implement this no-action position in advance of formal technical and system changes, which are expected to be completed in 2027. Under this approach, small banks will be exempt from the next scheduled IDR data submission window.

ASIC has stated it does not intend to take action against small banks for failing to submit an IDR report during the January-February 2026 and January-February 2027 submission periods, as required under Instrument 2022/205.

See: Media Release; Class No-Action Letter

Superannuation

APRA releases notes from Superannuation CEO Roundtable

On 18 September 2025, APRA released its notes from the Superannuation CEO roundtable held on 27 August 2025. The roundtable was hosted by APRA and ASIC, and attended by 10 superannuation trustee chief executive officers that manage the majority of superannuation platform products.

The key points that were discussed were as follows:

• Regulatory concerns: APRA raised issues regarding certain superannuation products, warning these could undermine confidence in the system. Trustees were reminded that reliance on financial advisers does not absolve them of their statutory and prudential obligations.
• Oversight and monitoring: ASIC emphasised the need for stronger oversight of advice fee deductions and urged disruption of business models that may harm members. CEOs reported steps to improve risk identification, including enhanced due diligence, data analysis, and monitoring of adviser behaviour.
• Governance and risk management: Trustees are expanding monitoring frameworks and governance models to detect and address risks earlier. Tools such as dashboards and analytics are being used to spot anomalies and unusual patterns.
• Product suitability: APRA reminded trustees of their responsibility to ensure only suitable products are offered to members, challenging the proliferation of platform products.
• Industry collaboration: There was strong support for better information sharing, standardised due diligence, and collective action to address systemic risks. Engagement with industry bodies and the development of new standards were encouraged.

APRA and ASIC will continue working with the industry to strengthen governance and member protection.

See: Media Release; Notes from Roundtable

Payments

ASIC to remake exemptions for low risk non-cash payment facilities

On 12 September 2025, ASIC announced its intention to remake the legislative instrument that exempts certain low risk non-cash payment facilities from all or part of the financial services regime under the Corporations Act. The current instrument, ASIC Corporations (Non-cash Payment Facilities) Instrument 2016/211 is due to sunset on 1 April 2026.

ASIC has reviewed the instrument and considers it to operate effectively and efficiently. The proposal aims to remake the instrument for a further five years, maintaining existing relief to ensure continuity for entities relying on it.

The instrument consolidates earlier class orders and provides relief for products such as travellers' cheques, loyalty schemes, road toll facilities, prepaid mobile services, certain gift facilities, and low value payment products. For low value facilities, the relief is subject to conditions, including requirements for providers to comply with alternative disclosure and dispute resolution obligations. In addition, AFS licensees who provide advice on, or arrange the use of, these payment services are exempt from the need to hold specific authorisations.

ASIC has not issued a consultation paper for this proposal, but is inviting feedback on the proposal by 8 October 2025.

See: Media Release

Fintech

ASIC grants exemptions for intermediaries distributing Australian stablecoin

On 18 September 2025, ASIC granted class relief to intermediaries involved in the secondary distribution of stablecoins issued by AFS licensees. This exemption removes the requirement for intermediaries to hold separate AFS, market, or clearing and settlement facility licences when distributing these stablecoins. Intermediaries must provide clients with the product disclosure statement for the exempt stablecoin, where available.

This measure aims to support innovation in digital assets while maintaining consumer protections by ensuring eligible stablecoins are issued under an AFS licence. The announcement follows ASIC's consultation on updates to its guidance for crypto and digital assets, with finalised guidance expected soon. ASIC is also working with Treasury on broader digital asset reforms, including a regulatory framework for payment stablecoins.

ASIC may extend this relief to intermediaries distributing stablecoins from additional AFS-licensed issuers as more issuers obtain an AFS licence. The relief will become effective upon registration on the Federal Register of Legislation.

See: Media Release; ASIC Corporations (Stablecoin Distribution Exemption) Instrument 2025/631

Other

ASIC facilitates digital disclosures through new legislative instrument

On 18 September, ASIC issued a new legislative instrument to continue and consolidate relief for digital financial services disclosures, replacing the previous instruments that are due to sunset in October 2025. The new instrument, which will remain in force until October 2030, updates and extends existing relief, including coverage for Cash Settlement Fact Sheets, to ensure consistency across financial services disclosures.

Following industry consultation, ASIC found broad support for the continuation of digital disclosure relief, with some stakeholders suggesting further legislative changes. ASIC has raised these suggestions with Treasury and will provide additional guidance in an updated Regulatory Guide 221 Facilitating digital financial services disclosures (RG 221) and Regulatory Guide 168 Disclosure: Product Disclosure Statements (and other disclosure obligations) (RG 168).

This action ensures the ongoing facilitation of digital disclosures within the financial services sector, maintaining regulatory clarity and supporting industry practice.

See: Media Release

ASIC reissues regulatory guide on auditor reporting obligations

On 18 September, ASIC has reissued Regulatory Guide 34 Auditor obligations: Reporting to ASIC (RG 34), consolidating and simplifying guidance on auditor breach notification and contravention reporting obligations. The updated guide replaces the previous version issued in March 2020.

The key updates include guidance on auditor obligations to report:

• suspected contraventions related to sustainability reporting, superannuation entities, corporate collective investment vehicles (CCIVs), and compliance plans for retail CCIVs;
• attempts to unduly influence, interfere and mislead the auditor;
• conflicts of interest; and
• the auditor's own suspected contraventions.

The technical updates to RG 34 align with ASIC's regulatory approach to new reporting obligations, incorporate relevant ASIC guidance, and update outdated references. However, there are no substantial changes to the circumstances in which auditors are required to report to ASIC.

See: Media Release

ASIC releases report on findings and actions to hardship support

On 25 September 2025, ASIC released Report 815 Hardship, not so hard to get help (REP 815) following concerns raised by ASIC in May 2024 and published in Report 782 Hardship, hard to get help: Findings and actions to support customers in financial hardship (REP 782).

Key improvements by lenders noted by ASIC include:

• increased customer awareness of the availability of hardship assistance
• corrections to policies and training materials
• improvements in the identification of hardship notices
• greater flexibility in how information is collected, and
• the removal of default requests for large amounts of customer information.

Following the publication of REP 782, ASIC called on lenders that received tailored feedback to provide ASIC with an action plan setting out their proposed amendments.

ASIC will continue to monitor the progress of lenders requested to provide action plans, including reviewing the reports from the independent reviewers.

See: Media Release; REP 815; REP 782