Financial Services Snapshots 

Financial Markets

ASIC proposes to remake relief for exchange-traded warrants

On 16 March 2026, ASIC commenced public consultation on proposals to remake two sunsetting legislative instruments which provide relief related to exchange-traded warrants, including:

• ASIC Corporations (Margin Lending Relief for Exchange-Traded Instalment Warrants) Instrument 2021/194 due to sunset on 1 April 2026, and
• ASIC Corporations (Exchange-Traded Warrants) Instrument 2016/886 due to sunset on 1 October 2026.

ASIC indicates that the instruments are operating effectively and continue to form a necessary part of the legislative framework. ASIC proposes to remake the legislative instruments for a period of five years, with minor amendments including:

• using market neutral language;
• simplifying the definitions and rewording the exemption to improve its clarity; and
• removing definitions which are now contained in the Corporations Act 2001.

Consultation closed on 24 March 2026.

See: Media Release, Consultation Page, Instrument 2021/194, Instrument 2016/886, Draft ASIC Corporations (Amendment) Instrument 2026, Draft ASIC Corporations (Exchange-Traded Warrants) Instrument 2026

Financial Advice

Consultation on reforms to financial adviser education requirements

On 17 March 2026, Treasury opened its consultation on reforms to the education standards for financial advisers.

The policy complements the consultation paper on managed investment scheme reform released by the Government in February 2026.

The proposed standard will require prospective advisers to:

• hold a bachelor's degree or higher;
• meet minimum study requirements in relevant areas such as finance, economics or accounting;
• complete mandatory advice subjects covering ethics, legal and regulatory obligations, consumer behaviour and financial advice fundamentals;
• complete a professional year;
• pass the financial adviser exam; and
• maintain continuing professional development.

Consultation will close on 17 April 2026.

See: Media Release, Consultation Page, Consultation Paper

Banking

APRA to consult on enhancements to bank capital and liquidity frameworks

On 16 March 2026, APRA indicated it will commence consultation on a package of reforms to bank capital and liquidity settings aimed at maintaining the resilience of Australia's financial system and ensuring it remains well-positioned to absorb shocks and respond to periods of turbulence.

Collectively, the proposals are designed to be broadly cost neutral across the banking industry, while small banks with more stable funding sources are expected to see some cost benefits from the liquidity changes.

The proposals include:

• Changes to the liquidity framework for the largest banks, including consideration of a new Pillar 2 liquidity framework to address risks not covered by existing Liquidity Coverage Ratio minimum requirements. For smaller banks, APRA intends to consult on a more risk-sensitive liquidity risk framework to incentivise more robust practice.
• Targeted amendments to the standardised capital framework to better align capital requirements with underlying risk, which is expected to reduce overall capital requirements for some banks. APRA’s key areas for focus will include high-quality lending to critical infrastructure projects, corporates without a credit rating and residential property development.
• Implementation of a simplified approach to the Basel Committee’s Fundamental Review of the Trading Book.

APRA will consult on the package in stages, beginning with consultation on changes to standardised risk weights for credit risk in the first half of this year.

See: Media Release, Letter to Authorised Deposit-Taking Institutions

Insurance

APRA stress test shows how the widening home insurance protection gap may impact Australia's financial system resilience

On 24 March 2026, APRA announced the release of its Insurance Climate Vulnerability Assessment, a prudential stress test exploring how a changing climate could affect home insurance affordability and the insurance protection gap over coming decades.

The Insurance CVA is not a forecast or prediction of future outcomes. Instead, APRA examined how home insurance coverage may fall under two severe but plausible global climate-related scenarios projected out to 2050: one with higher physical risks from weather-related events and one with greater economic impacts from transitioning to a lower emissions economy.

It found that, under both scenarios, climate-driven pressures on insurance premiums could significantly widen the nation’s insurance protection gap, thereby increasing financial risks to the system.

APRA advised they will continue to engage with government, industry and other regulators to share insights and to support efforts to manage prudential risks associated with declining insurance coverage.

See: Media Release, Insurance Climate Vulnerability Assessment

Superannuation

Payday Super Readiness

On 25 March 2026, APRA and the ATO issued a letter to RSE licensees regarding the commencement of Payday Super on 1 July 2026.

This letter sets out the ATO's and APRA's roles in the implementation of Payday Super, the relevant regulations and standards to support Payday Super, and next steps to support RSE licensee implementation readiness.

See: Media Release, Letter to RSE licensees, Treasury Laws Amendment (Payday Superannuation) Act, Treasury Laws Amendment (Payday Superannuation) Regulations, Practical Compliance Guideline

ASIC extends intra-fund transfer relief for super trustees

On 24 March 2026, ASIC announced the extension of the intra-fund transfer relief provided for superannuation trustees by a period of five years, until 1 April 2031.

ASIC Corporations (Intra-fund Transfers) Instrument 2026/688 continues the relief provided in ASIC Corporations (Superannuation: Accrued Default Amount and Intra-Fund Transfers) Instrument 2016/64, which is due to expire on 1 April 2026.

ASIC Instrument 2016/64 exempted trustees of APRA-regulated superannuation funds who issue superannuation products during an intra-fund transfer from:

• the application form requirements in section 1016A; and
• the cooling-off period requirements in section 1019A of the Corporations Act 2001.

The relief extension gives clarity to superannuation trustees about the application form and cooling-off period requirements during an intra-fund transfer.

See: Media Release, ASIC Corporations (Intra-Fund Transfers) Instrument 2026/688, ASIC Corporations (Superannuation: Accrued Default Amount and Intra-Fund Transfers) Instrument 2016/64

Other

ASIC consults on relief for managed discretionary account services

On 23 March 2026, ASIC opened consultation on proposed changes to ASIC Corporations (Managed Discretionary Account Services) Instrument 2016/968 (Instrument), due to expire on 1 October 2026.

ASIC is seeking feedback on whether the Instrument should:

• be extended for a further period; and
• if so, have any substantive and/or simplification changes made to the policy settings and terms of the relief set out in the Instrument.

The Instrument provides conditional relief from the managed investments provisions in Chapter 5C, and the product disclosure provisions in Chapter 6D and in Part 7.9 of the Corporations Act 2001.

Conditional relief would apply to managed discretionary account (MDA) providers and external MDA custodians.

The Instrument also modifies the financial services disclosure provisions in Chapter 7.7 of the Corporations Act to provide conditional relief in relation to statements of advice and financial services guides for MDA services.

Submissions can be made until 28 April 2026.

See: Media Release, Consultation Page, ASIC Corporations (Managed Discretionary Account Services) Instrument 2016/968

RBA releases Financial Stability Review for March 2026

On 19 March 2026, the RBA released its March 2026 Financial Stability Review.

The Review highlights that risks to the global financial system have increased. The escalation of conflict in the Middle East has contributed to sharp movements in global financial markets, while the risk of operational, cyber and security disruptions is heightened.

The RBA finds that:

• Australia's financial system is well placed to handle an increasingly uncertain global environment;
• most borrowers are in a solid financial position and remain able to manage increases in cost pressures, though some will face growing challenges; and
• Australian banks are in a strong position to continue supporting the economy, even if conditions deteriorate sharply.

In this environment, it is important that financial institutions continue to build both resilience to liquidity, operational and geopolitical shocks and maintain prudent lending standards.

See: Media Release, Financial Stability Review

ASIC launches financial complaints data dashboard

On 18 March 2026, ASIC launched the Internal Dispute Resolution (IDR) data dashboard which enables users to compare the complaints reported by individual financial firms for the first time, including their handling of complaints associated with specific products like home loans, credit cards, life and general insurance, or financial advice.

Other key features of the dashboard include:

• an overview of complaints volumes and trends over specified reporting periods;
• categorised breakdowns of complaints by issue and complaint outcomes;
• complaints resolution times for individual financial firms; and
• information about monetary remedies paid.

See: Media Release, ASIC approach to breach and complaints data publications, Internal Dispute Resolution (IDR) data dashboard

ASIC consults on changes to net tangible assets requirement for responsible entities

On 18 March 2026, ASIC commenced public consultation on options for increasing the net tangible assets (NTA) requirement for responsible entities of registered managed investment schemes.

Consultation Paper 388 Net tangible assets requirement for responsible entities (CP 388) proposes changes to the current NTA requirement set out in ASIC Corporations (Financial Requirements for Responsible Entities, IDPS Operators and Corporate Directors of Retail CCIVs) Instrument 2023/647. The consultation is intended to ensure the requirement continues to meet its objectives.

ASIC is also seeking feedback on:

• increasing the NTA requirements that apply to other fund operators i.e. operators of investor directed portfolio services (IDPSs) and corporate directors of retail corporate collective investment schemes (CCIVs); and
• the NTA requirements for other categories of licensees as this will inform future ASIC work.

Consultation will close on 17 April 2026, and ASIC will announce its final position on 31 July 2026.

See: Media Release, Consultation Paper, ASIC Corporations (Financial Requirements for Responsible Entities, IDPS Operators and Corporate Directors of Retail CCIVs) Instrument 2023/647

Other Author: Julia Ryan, Graduate.