Financial Services Snapshots

Financial Markets

ASIC facilitates faster IPO timetable with fast-tracked process

On 10 June 2025, ASIC announced that entities listing on the ASX now have access to a shorter initial public offering (IPO) timetable via a fast-tracked process as part of a two-year trial. ASIC will now engage with issuers prior to the exposure period, decreasing the need for supplementary and replacement documents which extended the exposure period.

These changes follow the release of a discussion paper by ASIC on 26 February 2025 which explored the rapid growth in investment capital allocated to private markets and the declining listings on public markets. The changes introduce a 'no action' position by ASIC that allows eligible companies to accept retail investor applications during the public exposure period for new listings, shortening the administrative timeline for the process.

See: Media Release

ASIC launches Inquiry into the ASX

On June 16 2025, ASIC announced an inquiry into Australian Securities Exchange (ASX) group, addressing governance, capability and risk management practices across the group. This reflects ongoing concerns by ASIC and the RBA on ASX's ability to maintain stable and secure market infrastructure in light of a number of incidents in recent years.

The inquiry will assess any core organisation and cultural drivers within the group that have contributed to these incidents. Likewise, it will analyse whether the group has the right organisational capabilities to provide a stable, secure and resilient market infrastructure to meet the evolving needs of the Australian market.

This inquiry will be led my an expert panel that will examine and address any identified shortcomings in relation to governance, capability and risk management. ASIC will subsequently publish a report of the outcome of the Inquiry, which will outline the steps to follow.

See: Media Release

Consumer Credit

AFCA to resolve BNPL disputes under new laws

On June 10 2025, AFCA announced that consumers using buy now pay later (BNPL) products have access to the AFCA external dispute resolution process (in addition to accessible internal dispute resolution processes of BNPL providers). This is on the basis of the introduction of greater consumer protections under the National Consumer Credit Protection Act and licensing of BNPL providers to hold Australian Credit Licence.

AFCA stated that it will adhere to ASIC Regulatory Guidance 281: Low-Cost Credit Contracts (RG281) and, where it is required, resolve dispute in a manner having regard to legal principles and good industry practice.

See: Media Release; RG281

Financial Advice

ASIC cracks down on unlawful finfluencers in global push against market misconduct

On 12 June 2025 ASIC issued warning notices to social media 'finfluencers' suspected of unlawfully promoting high-risk financial products and providing unlicensed financial advice to Australians. This follows a Global Week of Action Against Unlawful Finfluencers by nine international market regulators.

ASIC will continue to conduct targeted monitoring of financial discussion by finfluencers that feature or promote financial products and take enforcement action when unauthorised financial advice is seen to be causing harm.

See: Media Release

Insurance

APRA proposes changes to capital framework for annuity products

On 12 June 2025, APRA issued a consultation paper on modifying the capital framework for annuities. These proposed changes would allow for reduced capital requirements for annuity products and enhance risk management by life insurers. These changes should facilitate life insurers to offer more competitive priced annuities whilst mitigating risk for policyholders.

This consultation reflects the industry's call to better align APRA's requirements with other jurisdictions, to create a more favourable environment for the provision of annuity products. APRA seeks feedback from relevant stakeholders in response to the consultation by 25 July 2025.

See: Media Release; Information Paper

Banking

APRA consults on proposals for instruments relation to section 66 of the Banking Act

On 18 June 2025, APRA released a consultation for a set of minor proposals in relation to section 66 of the Banking Act 1959 (Cth) (Banking Act). Section 66 of the Banking Act restricts certain words and expressions being used within the context of a financial business. For example, the use of the word 'bank', require written consent from APRA for a person or class of persons to use that word or similar expressions.

APRA's proposals pertain to the section 66 exception and determination instruments that are due to sunset later this year or that require updating to reflect current practice. The consultation is open for submissions until 15 August 2025.

See: Media Release; Consultation Letter

Superannuation

APRA reinforces expectations on authentication controls in superannuation sector

On 10 June 2025, APRA published its expectations for registrable superannuation entity (RSE) licensee board chairs on information security and the implementation of robust authentication controls. This follows recent cyber-attacks on credentials that exposed weaknesses in authentication practices across the superannuation industry.

APRA has reminded entities of their obligations under Prudential Standard CPS 234 Information Security and outlined the specific actions to strengthen authentication controls. APRA expects all RSE licensees to have multi-factor authentication or equivalent protections for high-risk activities and privileged access and notify APRA of any material weaknesses or breaches.

See: Media Release; Letter; CPS 234

Authors: Jonathan Gordon, Partner; Corey McHattan, Partner; Hong-Viet Nguyen, Partner; Narelle Smythe, Partner; Samantha Carroll, Partner; Lisa Simmons, Partner; Rehana Box, Partner; Con Tzerefos, Partner; Scott Charaneka, Partner; Hannah Glass, Special Counsel; Geena Davies, Senior Associate; Greg Patton, Senior Associate; Nicole Mazurek, Senior Associate; Kim Yen Nguyen, Senior Associate; Nicky Thiyavutikan, Senior Associate; Justin Ho, Senior Associate; Holly Marchant, Senior Associate and Nicholas Dennis, Senior Associate.