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Financial Services: Regulatory Recap – Week commencing 12 October 2026

Date published 13 October 2026
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In this edition of our Financial Services: Regulatory Recap for the week commencing 12 October 2026, we focus on key legal developments over the last fortnight.

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ASIC

Reporting and Audit Update: Issue 5

ASIC released its Reporting and audit update: Issue 5 on 30 September 2026. The update focuses on regulatory developments in reporting and audit, including sustainability and financial reporting matters. This issue contains articles on:

  • ASIC Report 839: ASIC’s review of sustainability reports lodged for 31 December 2025, which includes ASIC's observations from its review of a sample of sustainability reports lodged by Group 1 entities with a reporting year ending 31 December 2025.
  • ASIC's sustainability reporting video series.
  • The remaking of financial and sustainability reporting and audit legislative instruments.
  • ASIC's recent enforcement action on late and non-lodgement of financial reports.
  • Updates to ASIC's sustainability reporting relief decisions register.
  • Company auditor obligations in the face of increased ASIC oversight.
  • ASIC's continued work to address greenwashing and sustainability-related claims.

ASIC extends relief supporting efficient financial markets

On 28 September 2026, ASIC announced that it has remade the following three legislative instruments for a further five years, continuing relief that supports the efficient operation of Australia's financial markets:

The instruments simplify compliance, support the Austraclear settlement system and reduce regulatory burden. The legislative instruments were due to sunset in October 2026.

ASIC updates relief for managed discretionary account service providers

On 30 September 2026, ASIC announced a new legislative instrument to continue regulatory relief for managed discretionary account (MDA) providers and external MDA custodians. ASIC Corporations (Managed Discretionary Account Services) Instrument 2026/720 replaces ASIC Corporations (Managed Discretionary Account Services) Instrument 2016/968 and does not substantively change the terms of the relief for MDAs. Minor adjustments have been made to reflect related regulatory developments and evolving industry practice, including:

  • moving some financial services guide content requirements into the investment program
  • amending the timeframe for notifying ASIC of non-compliance from 10 days to 30 days, along with changing the information required from full details of the non-compliance to its material details
  • phasing out quarterly reporting with electronic access to account information to better reflect industry practice, giving investors timely access to their investment details.

ASIC has also updated its guidance in Regulatory Guide 179 Managed discretionary accounts to reflect the new instrument and adjustments made.

ASIC increases low volume financial market transaction threshold by $1 million

On 30 September 2026, ASIC announced that it had remade a legislative instrument which exempts low-volume financial markets from the requirement to hold an Australian market licence, raising the relevant transaction value threshold from $1.5 million to $2.5 million. The increase in threshold reflects factors including inflation, with ASIC noting the threshold had not changed since 2016.

ASIC Corporations (Low Volume Financial Markets) Instrument 2026/756 continues the relief provided under ASIC Corporations (Low Volume Financial Markets) Instrument 2016/888, with the new instrument scheduled to sunset on 1 October 2031.

ASIC remakes six legislative instruments about managed investment schemes

On 28 September 2026, ASIC announced that it had remade six legislative instruments that provide relief around managed investment schemes. The instruments were expiring on 1 October 2026.

The new legislative instruments are:

ASIC will update the related guidance in the coming months.

ASIC remakes relief for client money held in cash common funds

On 1 October 2026, ASIC announced that it has remade a legislative instrument that allows Australian financial services licence holders to place client money in cash common funds.

The new instrument, ASIC Corporations (Client money - Cash common funds) Instrument 2026/727, continues existing relief arrangements and will remain in force until 1 October 2031. It replaces ASIC Corporations (Client money - Cash common funds) Instrument 2016/671, which is scheduled to expire on 1 October 2026.

ASIC releases 2026–27 supervisory priorities to support better regulation and give industry greater certainty

On 30 September 2026, ASIC announced that it has published its supervisory priorities for 2026–27 for the following sectors to provide greater transparency of priorities and give industry early visibility on planned activities:

  • Banking sector: ASIC will review the use of AI in customer-facing activities and will review lender conduct practices, such as incentives, referrer arrangements and broker oversight – see ASIC Supervisory letter - Banking.
  • Superannuation sector: ASIC will continue its multi-year review of superannuation member services and begin new reviews on trustee oversight of advice fee deductions and retirement – see ASIC Supervisory letter - Superannuation.
  • General insurance sector: ASIC will review the practices of for-profit claims management firms (including those commonly referred to as ‘disaster chasers’) and the potential implications of some firms’ practices for consumers – see ASIC Supervisory letter - General insurance.
  • Life insurance sector: ASIC will review life insurance practices related to funeral insurance and continue its review into service issues in life insurance – see ASIC Supervisory letter - Life insurance.
  • Markets sector: ASIC will promote market integrity and responsible innovation through surveillance and public-private initiatives, assisted by industry engagement and intelligence. ASIC will also reduce friction, support capital mobility, facilitate growth and competitiveness in Australia’s capital markets, and strengthen resilient market infrastructure – see ASIC Supervisory letter - Markets.

APRA

APRA releases proposals to strengthen trustee investment governance

On 30 September 2026, APRA announced that it has released a package of proposals to strengthen trustee investment governance and better protect members’ retirement savings. The proposals would strengthen requirements across eight key areas of risk and build on existing obligations for trustees.

Three new safeguards would require trustees to:

  • set and enforce member-level investment limits for higher-risk investments
  • strengthen the management of investment-related conflicts
  • ensure their investment oversight capabilities and resources are commensurate with the size and complexity of their investment menus.

APRA sector statistics

AUSTRAC

AUSTRAC InBrief (Issue 24)

On 30 September 2026, AUSTRAC published its InBrief newsletter (Issue 24), which includes the following articles:

AUSTRAC key actions and proceedings

On 30 September 2026, AUSTRAC announced that it has begun issuing infringement notices to businesses that have not enrolled with AUSTRAC as required. The notices follow formal requests for information issued by AUSTRAC in August and were issued to businesses in the real estate, accounting and jewellery sectors.

Other bodies and regulators

Interview of Attorney-General on AI and copyright

On 29 September 2026, the Attorney-General’s portfolio published an interview of the Hon Michelle Rowland where she discusses the government’s urgent review of AI-related cyber incidents, proposals for stronger and faster reporting requirements and the central focus on copyright protections.

ACCC Fact sheet: Enforcement of notification requirements under the merger control regime

On 8 October 2026, the ACCC published a fact sheet that outlines its approach to enforcement of the notification requirements under the merger control regime.

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