In this edition, we discuss the Australian Council of Superannuation Investors’ (ACSI) newly updated governance guidelines, some of the key issues forming part of the Australian Securities and Investments Commission’s (ASIC) regulatory focus this year, and the sentence handed down for insider trading in Platinum Asset Management Limited (previously ASX: PTM) (Platinum).
In Over the Horizon, we consider the Organisation for Economic Co-operation and Development’s (OECD) proposed reforms for the Australian economy.
Governance
ACSI releases refreshed governance guidelines
On 20 January 2026, ACSI released its biennial update of its governance guidelines, which sets out ACSI’s expectations of publicly-listed companies across areas such as directors’ responsibilities, shareholder rights, executive remuneration and sustainability-related opportunities and risks. Among other things, the guidelines remind company boards to exercise independent judgement when assessing the merit of transaction proposals. They also aim to ensure that executive remuneration structures are transparent and are designed to promote sustainable long-term performance and shareholder value creation. ACSI also considers that sustainability reporting provides an opportunity for a company’s board to demonstrate strategic thinking. In this context, directors will need to continually assess the most material environmental and social risks. They should disclose the process and outcomes of that assessment and implement policies and procedures to manage those risks over the short, medium and long term.
Regulatory
ASIC announces key issues outlook for 2026
On 27 January 2026, ASIC highlighted its areas of focus for 2026. It noted that potential risks to businesses include failures in managing technology-driven risks, inadequate disclosures in financial and sustainability reporting and operational challenges for the superannuation and insurance sectors. ASIC notes that cyber risk is elevated by the digitisation of data across sectors, the use and reliance on outdated technology and the evolving capability of malicious actors. Despite this, ASIC’s research found that organisations’ capability to manage artificial intelligence governance risks remains varied. In response, the regulator is calling on directors to “test their operational resilience and crisis responses, and address vulnerabilities with their third-party service providers.”
Legal
Former fund manager sentenced to six years’ imprisonment for insider trading offences
On 23 January 2026, the Federal Court of Australia ordered that Mr Rodney Forrest serve six years’ imprisonment for using confidential takeover materials to illegally trade and procure others to trade Platinum shares. While attending a client’s office for a meeting, Mr Forrest photographed a pitch deck without permission, which revealed the offer price of a proposed scheme to acquire Platinum. Mr Forrest subsequently purchased $2.69 million of Platinum shares over eight trades. He also procured two individuals and a company to purchase additional shares. In addition, he facilitated media coverage that preceded Platinum’s confirmation announcement and a 12.5% price jump. As a result, he and others realised profits. Justice Bromwich found Mr Forrest’s conduct to be deliberate, dishonest and premeditated, and ”a profound breach of trust”. Mr Forrest will serve a six-year sentence and a non-parole period of three‑years with his total realised profit of $309,571.84 forfeited. Insider trading remains an enforcement priority for ASIC, and this case serves as a reminder of the need for safeguards around confidential and price‑sensitive information.
Over the Horizon
OECD calls for a decrease in government spending and warns of overreliance on direct taxation
On 22 January 2026, the OECD released its Australian economic survey, recommending reforms to stabilise macroeconomic activity, improve housing affordability, revitalise competition and facilitate the energy transition. The survey echoed earlier findings of the International Monetary Fund, as discussed in a previous edition of Boardroom Brief, including that the economy has experienced a lack of productivity growth. The survey observes that fiscal adjustments to narrow deficits across state and federal budgets are needed to stabilise the public debt ratio. It suggests that this can be achieved by increasing the efficiency of public spending and adjusting Australia’s tax mix. In this context, the survey notes that Australia relies disproportionately on direct income taxation when compared to other OECD nations. The survey reiterated an October 2023 OECD recommendation to increase the rate and base of the goods and services tax. It also suggested increasing taxes on motor fuels, including reducing concessions for business fuel purchases, to support the climate transition. Should the government adopt the OECD’s suite of recommended fiscal reforms, businesses may face increased costs across their supply chains.