Regulatory
ASIC finds statutory sustainability reporting has lifted disclosure quality, with forward-looking disclosures a key area to watch.
On 21 September 2026, ASIC published Report 839, which reviews a sample of 40 of the 312 sustainability reports lodged for the financial year ended 31 December 2025. ASIC found that the quality, quantity and consistency of climate-related financial information has improved markedly compared with previous voluntary disclosures. ASIC Commissioner Kate O’Rourke said statutory reporting has driven “heightened transparency” and “more meaningful engagement by entities with climate-related risks and opportunities”. However, ASIC identified room for improvement in forward-looking disclosures and disclosures involving assumptions or judgement, particularly in “strategy” and “metrics and targets” disclosures.
Report 839 sets out eight practical actions for entities preparing sustainability reports. The requirements apply to large businesses and financial institutions that must prepare and lodge financial reports under the Corporations Act. They are phased in over three years across three groups. ASIC’s next review covers Group 1 reports for the financial year ended 30 June 2026. Directors of Group 1 entities should expect their reports to be assessed against the eight action items. All boards within scope should review Report 839 and the action items now, giving them enough lead time before their reporting obligations commence.
Legal
ASIC sues former Super Retail Group CEO over alleged conflicts of interest.
On 21 September 2026, ASIC commenced civil penalty proceedings against Mr Anthony Heraghty, former CEO and Managing Director of ASX-listed Super Retail Group (SRG) (Supercheap Auto, BCF, Rebel and Macpac), alleging breaches of section 180 (duty of care and diligence) and section 1309(2) of the Corporations Act (misleading information). ASIC alleges Mr Heraghty failed to disclose and manage conflicts of interest arising from an undisclosed relationship with a senior executive. It alleges he continued to supervise the executive, influenced decisions affecting their remuneration and redundancy, participated in board discussions about related complaints and litigation, and authorised information sent to the board and market that omitted material details. ASIC alleges these matters exposed SRG to foreseeable risks, including reputational harm, litigation, regulatory action and damage to its share price. ASIC seeks declarations, pecuniary penalties and disqualification orders. The allegations have not been tested in court. ASIC Chair Sarah Court said governance and directors duties failures remain enforcement priorities: “it is critical that directors fully meet their obligations of transparency and accountability.” The case highlights the need for robust processes to identify, disclose and manage conflicts, including where personal relationships overlap with corporate responsibilities.
Over the Horizon
Private credit: ASIC moves from warnings to enforcement.
On 22 September 2026, ASIC Commissioner Simone Constant told the Commercial & Asset Finance Brokers of Australia Commercial Property & Development Finance Summit that governance, controls and underwriting standards in private credit have not kept pace with the sector’s rapid growth. ASIC is “now well beyond warnings”, with multiple enforcement investigations underway, active surveillance across wholesale and retail funds and a further tranche of surveillance due soon. ASIC’s surveillance of 28 private credit funds (Report 820) found that only four published borrower interest rate information, fewer than half had detailed credit or default management policies and only two wholesale funds performed liquidity stress testing. Report 821 found that Australian private market disclosure falls below comparable jurisdictions, including Singapore, the US, the UK and Switzerland.
ASIC expects boards and investment committees to assess their funds against its 10 principles of private credit done well and embed those principles in decision-making. Institutional investors and superannuation trustees are expected to conduct genuine look-through due diligence – examining underlying collateral, verifying bad-debt provisioning and independently testing manager assumptions. ASIC has signalled that it intends to take enforcement action if standards do not lift. Boards with private credit exposure – whether as fund operators, investors or trustees – should review their practices against ASIC's 10 principles and satisfy themselves that governance, disclosure and valuation processes are robust.