In this edition, we examine the Senate’s re-adoption of the inquiry into greenwashing and ASIC’s latest steps to boost competition and innovation in Australia’s capital markets. We also review the Federal Court’s decision to impose penalties on iSignthis and its former managing director and CEO for failing to comply with continuous disclosure obligations and the provision of false or misleading information to the ASX.
In Over the Horizon, we explore the need for Australia to shift towards more flexible, outcomes-based regulation of data, digital technology and privacy.
Governance
Senate re-adopts the inquiry into greenwashing
On 31 July 2025, the Commonwealth Senate resolved to re-adopt the inquiry into greenwashing (including into the impact of misleading environmental and sustainability claims on consumers, the regulation of those claims, the role of advertising standards, and legislative options to protect consumers). The Senate Standing Committees on Environment and Communications are now due to present their final report by 25 June 2026. This follows the lapse of the original inquiry under the previous Parliament, with all prior evidence and submissions carried forward for consideration. The Committees are inviting further submissions until 12 September 2025, particularly on the role of corporate sponsorship and advertising by fossil fuel companies and their commercial arrangements with media organisations. Directors should monitor the progress of this inquiry, as its findings may have significant implications for corporate disclosure practices and the regulation of sustainability-related claims.
The reactivated greenwashing inquiry is a clear signal that regulatory expectations are shifting and boards must now take a proactive role in ensuring ESG claims are accurate, defensible and consistently aligned across disclosures, marketing and sponsorships, safeguarding corporate integrity and stakeholder trust.
Regulatory
ASIC update on enhancing competition and innovation in Australia’s evolving capital markets
On 6 August 2025, ASIC announced a suite of initiatives aimed at enhancing competition and innovation within Australia’s capital markets. Key developments include ASIC’s ongoing assessment of a listing market application from Cboe Australia (a subsidiary of Cboe Global Markets (Cboe)), which is expected to provide greater choice for issuers and investors and attract additional foreign capital. ASIC is also expanding the list of approved foreign markets to include Cboe’s US and Canadian exchanges, as well as the Canadian Securities Exchange, enabling Australian investors to hypothetically access a broader range of international transactions. In addition, ASIC is looking at ways to streamline dual listings of foreign companies and is actively considering further innovative applications to encourage international businesses to list on Australian public markets. These measures follow ASIC’s February 2025 discussion paper on the evolving dynamics of capital markets and its June 2025 announcement of a fast-track IPO timetable, all designed to ensure Australia remains a competitive and attractive destination for global investment.
Directors should ensure their organisations are well-positioned to navigate regulatory changes and capitalise on new opportunities in the ever-evolving market landscape.
Legal
Federal Court orders significant penalties for iSignthis and its former managing director and CEO
On 8 August 2025, the Federal Court of Australia ordered multi-million-dollar penalties against Southern Cross Payments Ltd (formerly iSignthis Ltd) and its former managing director and CEO, Mr Nickolas John Karantzis, for breaches of continuous disclosure obligations and directors’ duties. iSignthis provided remote verification of identity, transactional banking and payment processing services. The company was delisted from ASX in 2022. The failures on which the penalties were based included failure to disclose that certain counterparties had terminated their relationship with the company and failing to properly recognise certain revenues and costs in announcements to the ASX. In its media release, ASIC Deputy Chair Sarah Court said, “The Court has found that iSignthis and Mr Karantzis demonstrated repeated disregard for the law through deliberate acts of non-disclosure and by providing false and misleading information to the ASX”. The outcome serves as a reminder that directors are expected to exercise diligence over the content of ASX announcements and ensure all disclosures are accurate, timely and not misleading.
Boards should consider reviewing their disclosure protocols to ensure robust oversight of any statements made to the market.
Over the Horizon
Productivity Commission releases interim report on data and digital technology
On 5 August 2025, the Productivity Commission released its interim report on data and digital technology, outlining draft reforms that could reshape the regulatory environment for AI, data governance and corporate reporting. The report emphasises that there is clear economic potential from AI and that Australia needs to harness its consumer and productivity benefits while managing and mitigating the downside risks. Its draft recommendations (which span AI adoption, expanded data-access pathways, outcomes-based privacy regulation and default digital financial reporting) point to a future regulatory landscape that emphasises both productivity gains and tangible consumer protection.
For boards, these potential reforms could mean recalibrating AI and data strategies to capture emerging opportunities while ensuring privacy frameworks deliver demonstrable outcomes rather than mere compliance. With submissions to the Productivity Commission for their final report closing on 15 September 2025, proactive engagement now may position organisations ahead of the curve when reforms crystallise.