On the pulse
ASIC releases new regulatory guidance to support buy now pay later industry reforms – see media release.
ASIC InFocus May 2025 – see newsletter.
ASIC proposes to remake three financial advice-related legislative instruments – see media release.
ASIC proposes to remake incidental retail cover legislative instrument – see media release.
ASIC reminds small business directors of their obligations to manage company money and assets appropriately – see media release.
ASX responds to ASIC's discussion paper on public and private markets – see submissions paper.
ACCC proposes to authorise Australian Payments Network Limited for wind down of Australia’s cheques system – see media release.
AICD submission on ASIC’s discussion paper on Australia’s evolving capital markets – see media release.
AICD releases Data Governance Foundations for Boards – see media release.
TNFD releases Asking Better Questions on Nature for board directors – see media release.
G+T Insight – Dr. AI vs Dr. Human – see article.
G+T Insight – Can AI jump–start productivity and by how much? – see article.
ASIC
ASIC releases new regulatory guidance to support buy now pay later industry reforms
ASIC has published a new regulatory guide to help buy now pay later providers understand their obligations, ahead of new laws coming into effect on 10 June 2025. Regulatory Guide 281 Low cost credit contracts provides information to assist low cost credit contract providers to comply with their key obligations, including modified responsible lending obligations. ASIC Commissioner Alan Kirkland said: “[t]hese reforms are an important step to improve protection for Australian consumers who use buy now pay later products”.
Following the release of ASIC’s draft regulatory guide and Consultation Paper 382 Low cost credit contracts in February 2025, ASIC received 16 submissions from stakeholders, including buy now pay later providers, industry associations and consumer advocates. ASIC clarified parts of the guide and added examples in response to feedback.
In a media release, ASIC Commissioner Alan Kirkland said: “[w]e strongly encourage buy now pay later providers who do not already have the appropriate credit licence to apply for one as soon as possible…providers who do not have their credit licence application accepted for lodgement by ASIC by 10 June 2025 may be engaging in unlicensed conduct if they continue to operate”.
See ASIC media release.
ASIC InFocus May 2025 – Volume 34 Issue 4
Electronic signatures now allowed on Form 362 – ASIC now accepts electronic signatures on Form 362, allowing registered agents to collect and store the form electronically, which streamlines the agent appointment process and removes the need for posting paper forms. The form must still be signed by a current company officeholder, either physically or digitally, in accordance with updated Electronic Lodgement Protocol requirements.
ASIC launches new portal for AFS licensees – ASIC has launched its new digital AFS licence application portal. From 5 May 2025, AFS licence applicants will be able to apply for a new AFS licence through the Regulatory Portal. Additional transactions, including applying to vary and cancel an AFS licence and AFS licence maintenance notifications, will become available in the coming months. For further details, see ASIC’s media release.
Are you the local agent for a registered foreign company? – ASIC runs a wide range of corporate compliance programs, including targeting registered foreign companies that fail to lodge financial statements. Local agents for registered foreign companies are responsible for ensuring the company meets its obligations this includes preparing and lodging financial statements or annual returns with ASIC at least once every calendar year. Non-compliance can lead to penalties or liability for breaches. Late lodgements may also attract additional fees. For further details, see the steps to registering foreign companies publication.
ASIC proposes to remake three financial advice-related legislative instruments
ASIC is seeking feedback on its proposal to consolidate three legislative instruments relating to financial advice into a single instrument and extend it for a further five years. The legislative instruments are scheduled to sunset on 1 October 2025.
The legislative instruments are:
ASIC Corporations (Advertising by Product Issuers) Instrument 2015/539
ASIC Corporations (General Advice Warning) Instrument 2015/540
ASIC Corporations (Financial Services Guides) Instrument 2015/541.
ASIC has assessed that these legislative instruments are operating effectively and continue to form a necessary and useful part of the legislative framework. Aside from minor changes, the content of these instruments will remain largely unchanged.
ASIC invites feedback on this proposal. Submissions should be sent by 5pm AEST on 12 June 2025.
See ASIC media release and CS 18.
ASIC proposes to remake incidental retail cover legislative instrument
ASIC is inviting feedback on its proposal to remake the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716, which exempts insurers and brokers from certain retail client obligations under Chapter 7 of the Corporations Act 2001 (Corporations Act) and is scheduled to end on 16 August 2025.
ASIC has assessed that this instrument is generally operating effectively and efficiently and continues to form a necessary and useful part of the legislative framework.
ASIC invites feedback on this proposal. Submissions should be sent by 5pm AEST on 16 June 2025.
See ASIC media release and CS 19.
ASIC reminds small business directors of their obligations to manage company money and assets appropriately
ASIC is reminding small business company directors that they must manage company money and assets in the best interests of their company. Misuse of company money and assets for personal gain can lead to companies being unable to pay their debts, which can harm other small businesses who are creditors. The reminder follows recent action taken against company directors following ASIC investigations.
See ASIC media release.
APRA
APRA key actions and proceedings
APRA authorises CGU Australia Pty Ltd as a new general insurer – see APRA media release.
Other bodies and regulators
ASX responds to ASIC's discussion paper on public and private markets
On 8 May 2025, the ASX published a submissions paper outlining several opportunities to improve the global competitiveness of Australia's listed markets, streamline listing processes and open new investment opportunities for investors.
Responding to ASIC’s discussion paper DP Australia's Evolving Capital Markets: A discussion paper on the dynamics between public and private markets (Evolving Capital Markets DP), the ASX has advocated for:
A streamlined IPO process by reducing the regulated on–risk period for investors and companies.
Clearer regulation around financial forecasts in prospectuses, including allowing them to be optional for new listings.
A reduction in the required minimum level of free float for new listings and S&P/ASX Index inclusion to attract more founder-led companies.
A more efficient and accessible corporate bond market to improve flexibility for issuers and increase access for retail investors.
Adjusted size thresholds for foreign exempt listings to encourage more international businesses to take secondary listings on ASX, while maintaining strict requirements for equivalent standards of listing rules and compliance.
Further public discussion and consideration is to be given to dual class share structures in Australian public markets. This follows recent regulatory changes in the United Kingdom, Singapore, China and Hong Kong to change regulatory settings to allow or facilitate dual class share listings.
ACCC proposes to authorise Australian Payments Network Limited for wind down of Australia’s cheques system
On 7 May 2025, the ACCC issued a draft determination proposing to grant authorisation AA1000689 (the Authorisation) with a condition to enable Australian Payments Network Limited (AusPayNet) and members of the Australian Paper Clearing System to engage in conduct to facilitate the government’s wind down of Australia’s cheques system. The proposed conduct includes making and giving effect to agreements with each other and third parties, such as the Reserve Bank of Australia, government and industry participants, and engaging in discussions to monitor progress, report issues and develop solutions to facilitate the wind down of cheques.
The conduct reflects the proposed collaboration between the financial services industry and government in the Treasury’s Cheques Transition Plan. The plan sets a target to stop issuing cheques by 30 June 2028 and cease accepting cheques and close the system by 30 September 2029. The ACCC granted an interim authorisation on 18 December 2024 for AusPayNet to engage in preparatory conduct to begin the work needed to meet the Treasury’s timeframe for the transition away from cheques.
The ACCC proposes to grant the Authorisation until 31 December 2030. The ACCC is now seeking submissions in response to the draft determination by Friday 23 May 2025 before making its final decision. Further information about the ACCC’s decision is available on the ACCC’s public register.
See ACCC media release.
AICD submission on ASIC’s discussion paper on Australia’s evolving capital markets
The key points in the AICD’s 28 April 2025 submission include:
AICD member engagement indicates regulatory accumulation is discouraging well-qualified directors joining listed boards.
The heightened risk of shareholder class actions and a more complex stakeholder environment are seen as further barriers to public market growth.
The AICD welcomes ASIC’s proposal to refine the listing pathway and advocates for additional measures to reduce the regulatory burden on listed companies.
While acknowledging the importance of monitoring market dynamics, the AICD is yet to see compelling evidence for broader private market regulatory intervention.
See AICD media release.
AICD releases Data Governance Foundations for Boards
On 14 May 2025, the AICD released Data Governance Foundations for Boards: Key principles for director oversight and value creation.
The resource sets out better practice guidance for boards overseeing data governance. It covers:
regulatory obligations relevant to board-level data governance
five key principles to guide data governance
top ten questions directors should ask to support strong data governance.
See AICD media release.
TNFD releases Asking Better Questions on Nature for board directors
On 6 May 2025, the Taskforce on Nature-related Financial Disclosures (TNFD) announced that it had published its first Asking Better Questions on Nature guide, produced in collaboration with Chapter Zero, Competent Boards, Commonwealth Climate and Law Initiative and Green Finance Institute.
The guide is designed to help board members find the information they need to ensure that nature-related issues are being appropriately incorporated into the company’s governance, strategy, risk management and capital allocation decision-making.
The TNFD guide sets out 12 key questions board directors may wish to ask company executives and consider in board meetings. It also outlines the sort of analysis they should expect to see from their organisations to support those discussions. The questions were developed in consultation with experienced executive and non-executive board directors of leading organisations already considering climate and nature-related issues, alongside TNFD’s partner organisations.
See TNFD media release.
G+T articles
G+T Insight – Dr. AI vs Dr. Human – discusses the growing integration of AI in healthcare, highlighting its transformative potential in diagnosis, research, and patient care, while also addressing critical challenges around regulation, safety, data privacy, and the need for collaborative, evidence-based oversight – Peter Waters (5 May 2025).
G+T Insight – Can AI jump-start productivity and by how much? – discusses Australia’s use of and trust in AI and its effect on the economy – Peter Waters, Andrew Low and Jen Bradley (12 May 2025).
Calendar dates
14 May 2025 – Deadline for submissions to ASIC consultation on breach and complaint data dashboards.
10 June 2025 – Credit licensing requirements for Buy Now Pay Later providers commence.
30 June 2025 – Deadline for submissions to Senate Committee inquiry into Whistleblower Protection Authority Bill 2025 (No.2).
5 August 2025 – Final report due in the Senate inquiry into greenwashing.
31 March 2026 – Amended AML/CTF obligations commence for existing reporting entities.
31 March 2026 – Tranche two entities may enrol as reporting entities with AUSTRAC.
1 July 2026 – Mandatory climate-related financial disclosures for Group 2 entities apply in respect of financial years starting on or after this date.
1 July 2026 – Key AML/CTF obligations commence for lawyers under reforms to Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
13 July 2026 – Key CDR obligations commence for non-bank lenders.
1 July 2027 – Mandatory climate-related financial disclosures for Group 3 entities apply in respect of financial years starting on or after this date.