In this edition, we discuss the Australian Securities and Investments Commission’s (ASIC) consultation on proposed standards and guidance to implement the new digital asset laws commencing in April 2027. In Regulatory, we consider the ASIC Chair’s keynote address on the future of financial reporting and ASIC’s focus on financial reporting and audit as an enforcement priority. In Legal, we examine the Australian Competition and Consumer Commission’s (ACCC) proceedings against Sunny Queen Pty Ltd (Sunny Queen) and 11 other egg producers and suppliers, the first case to rely on the concerted practices prohibition.
In Over the Horizon, we consider a submission by the Australian Institute of Company Directors (AICD) regarding access to directors’ personal information on the companies register.
Governance
ASIC seeks feedback on implementation of new digital asset laws.
On 15 October 2026, ASIC released a consultation paper and draft guidance relating to the implementation of new legislation. From 8 April 2027, the legislation will bring digital asset platforms (such as cryptocurrency exchanges and brokers that hold clients’ tokens) and tokenised custody platforms (which hold assets and issue tokens representing them) within the financial services licensing regime. Consultation Paper 392 outlines ASIC’s proposed standards for complying with the new framework. A proposed draft regulatory guide explains how the law applies to platform operators, the relevant authorisations required and obligations for Australian financial services (AFS) licensees. Directors of affected businesses should ask management to review the proposed standards applicable to asset-holding, settlement and minimum financial requirements against the organisation’s current operations. Based on that review, directors should consider the impact of the proposals on their organisation’s operating model, custody arrangements and capital position. Submissions for feedback close on 27 November 2026.
Regulatory
ASIC steps up scrutiny of financial reports and auditors.
On 13 October 2026, ASIC Chair Sarah Court delivered the keynote address at the G100 and CPA Australia Annual Reporting Luncheon in Melbourne. She reiterated that strengthening financial reporting and audit remains a top strategic and enforcement priority for ASIC. Since August 2025, ASIC has issued more than $5 million in infringement notices for late or non-lodgement of financial reports, secured several million dollars in court-imposed penalties and commenced inquiries and investigations against auditors. ASIC will soon publish the findings of its annual review of companies’ financial reporting and audit, and will then examine managed investment schemes, focusing on asset valuations and how auditors test them. ASIC will also review a sample of large companies’ (Group 1) sustainability reports for 30 June 2026, while taking a “pragmatic and proportionate” approach to enforcement as the regime beds down. ASIC supports the Government’s proposed licensing of audit firms and will share high-level findings from its review of the big four audit firms before the end of the year. Directors should keep in mind that ASIC is actively enforcing lodgement deadlines, and should review ASIC's findings when published, test management and auditors on valuation judgments, and ensure lodgement timetables are realistic.
Legal
ACCC takes egg suppliers to court over alleged coordination.
On 13 October 2026, the ACCC commenced civil proceedings in the Federal Court of Australia against Sunny Queen, Australia’s largest egg supplier, and 11 other egg producers and suppliers. The ACCC alleges that since at least October 2020, the companies have coordinated on the production and supply of eggs in breach of the Competition and Consumer Act 2010 (Cth). The ACCC alleges that producers, including Sunny Queen, shared information and coordinated production volumes, distribution, expansion plans and culling to manage perceived oversupply, likely substantially reducing competition for many years. The claims span cartel conduct, exclusive dealing (including restrictions said to have prevented rival producer Kinross Farm Pty Ltd from supplying major retailers) and the purchase of a Queensland farm, allegedly to stop rivals acquiring it. It is the ACCC’s first case to rely on the “concerted practices” prohibition introduced in 2017, which captures cooperation between businesses that goes beyond independent responses to market conditions. The ACCC is seeking declarations, penalties, injunctions and costs; Sunny Queen denies the allegations and intends to defend the proceedings. Directors, particularly in concentrated industries, should note that competition risk can arise without a formal agreement, and should ask management how the business controls information-sharing with competitors, how output and pricing decisions are made and documented and whether acquisitions are reviewed for competition risk.
Over the horizon
AICD backs tiered access to the companies register but opposes default public disclosure of residential addresses.
Legislation passed earlier this year requires companies to provide director IDs to ASIC, so that those directors IDs can be linked to the companies register from 1 July 2027. On 12 October 2026, the AICD made a submission to ASIC on proposed access to directors’ personal information ahead of this change. The AICD strongly supported ASIC's proposed tiered access model (covering general public, company, business and government). Under that model, users with legitimate administrative, business, professional (including journalistic) or regulatory purposes would keep full access. However, the AICD has raised privacy, cyber and safety concerns arising from the public availability of residential address and date of birth information. It opposes making residential addresses public where a director has not provided a service address, recommending that the company's registered office be the default instead. The AICD also supports access to a director's year of birth only (rather than their full date of birth). These concerns from the AICD sit within a wider set of risks that boards will face more often in the years ahead, as cyber-enabled identity theft and fraud grow exponentially. Directors should understand what personal information may become public from July 2027 and consider whether to nominate a service address.