On the pulse
ASIC risky business: Driving change in CFD issuers’ distribution practices – see report.
ASIC secures nearly $40 million in refunds to investors after CFD sector falls short – see media release.
ASIC proposes extension of instrument relieving securitisation entities from holding an AFS licence – see consultation.
ASIC: Key issues outlook 2026 – see media release.
ASIC updates information available through purchased extracts – see announcement.
ASIC proposes to extend intra-fund transfer relief for super trustees – see media release.
ASIC proposes updates to legislative instruments about financial reporting – see media release.
APRA announces executive change – see media release.
APRA explains its role in private health insurance premium increases – see media release.
APRA to monitor in1Bank’s return of deposits – see media release.
ASX appoints members to newly constituted Advisory Group on Corporate Governance – see media release.
AUSTRAC orders audit for Airwallex for suspected AML/CTF compliance failures – see media release.
AUSTRAC backs newly regulated sectors with release of AML/CTF program starter kits – see media release.
ACSI: New edition of Governance Guidelines highlights critical role of company directors – see media release.
ACSI: ASX consultation a positive step toward strengthening shareholder rights – see media release.
ATO: Payday Super legislation introduced – see media release.
Governance Institute of Australia: Handling confidential market-sensitive information – see news update.
AICD welcomes new ASX Advisory Group – see media release.
G+T Insight – AML/CTF reform (19 January 2026).
G+T Insight – Enhanced regulatory sandbox under review (22 January 2026).
G+T Insight – ASIC finalises relief for stablecoins and wrapped tokens (28 January 2026).
ASIC
Risky business: Driving change in CFD issuers’ distribution practices
On 20 January 2026, ASIC released a report following a 2024–2025 sector-wide review of contracts for difference (CFD) issuers’ distribution practices and compliance measures.
Key findings from the report include:
poorly defined target markets
potentially misleading marketing
inadequate screening of clients unlikely to be in the target market
lack of ongoing monitoring
substandard over-the-counter (OTC) derivative transaction reporting
failures to identify breaches of the law and/or report them to ASIC
See ASIC report.
ASIC secures nearly $40 million in refunds to investors after CFD sector falls short
ASIC’s industry-wide review of 52 licensed CFD issuers in the period October 2024 to December 2025 uncovered widespread non-compliance with design and distribution obligations (DDO), the CFD product intervention order (PIO) and reporting rules. More than half the sector was contravening the PIO by offering ‘margin discounts’ on opposing positions that could not yield profit and increased funding costs.
ASIC secured nearly $40 million in remediation for over 38,000 retail investors and highlighted the high-risk nature of CFDs, noting that in FY2024, 68% of retail CFD investors lost money, totalling more than $458 million including $73 million in fees. ASIC has pursued targeted enforcement and supervisory actions, including an interim stop order on Stratos Trading Pty Limited (trading as FXCM), which was subsequently revoked after remediation.
ASIC reports significant improvements in issuers’ practices: 39 issuers changed their target market determinations, 46 improved website content, 44 strengthened onboarding questionnaires, 42 enhanced monitoring of client trading outcomes and 48 rectified OTC derivative transaction reporting requirements after over 70 million erroneous reports were identified. Reportable situations rose 127% year-on-year, indicating heightened compliance responsiveness.
See ASIC media release.
Proposed extension of instrument relieving securitisation entities from holding an AFS licence
ASIC is seeking feedback on a proposal to extend the exemption for securitisation entities from holding an Australian financial services (AFS) licence under the ASIC Corporations (Securitisation Special Purpose Vehicles) Instrument 2016/272.
The current instrument – which is set to expire 1 April 2026 – exempts a securitisation entity from holding an AFS licence where it holds a securitisation product as a custodian or trustee or is issuing a securitisation product to:
an AFS licence holder
an entity that is exempt from holding an AFS licence
a wholesale client.
ASIC is proposing to remake the instrument on largely the same terms for a period of five and a half years.
ASIC is welcoming feedback on the proposal until 20 February 2026.
See ASIC consultation.
ASIC: Key issues outlook 2026
On 27 January 2026, ASIC Chair Joe Longo outlined the key issues ASIC will focus on in 2026. Mr Longo noted that market structure continues to evolve with private markets expanding and digitalisation accelerating. He also observed that changes to ASX governance requirements may reshape how listed companies operate, influencing transparency and market confidence. Other key issues include:
Increased retail client exposure to private credit markets.
Operational failures by superannuation fund trustees leading to member harm.
Consumers losing their retirement savings through investments in high-risk products, driven by high-pressure sales tactics and inappropriate financial advice.
Advanced technology harming consumers, including agentic artificial intelligence (AI).
Cyber attacks, data breaches and/or inadequate operational resilience and crisis management undermine market confidence and harm consumers.
Regulatory gaps related to emerging financial sector participants (digital assets, payments, users of AI) and others on the regulatory perimeter.
Poor insurance claims handling, particularly following extreme weather events.
Failure or significant outage resulting from the implementation of CHESS replacement or due to the ongoing use of the ageing infrastructure of the current system.
Poor quality financial reporting, sustainability reporting and audit quality.
Increased risk appetite in the banking sector in response to competitive pressures that results in consumer harm.
ASIC updates information available through purchased extracts
On 2 February 2026, ASIC announced that company extracts purchased through the ASIC website will no longer contain the residential addresses of company officeholders.
ASIC implemented this change in response to broader privacy and safety concerns, including the potential misuse of personal information and the risk of identity theft and cybercrime.
This action does not remove residential address information entirely but introduces a barrier at the most widely available access point.
ASIC proposes to extend intra-fund transfer relief for super trustees
On 28 January 2026, ASIC announced that it is inviting feedback on its proposal to extend relief for superannuation trustees from complying with application form and cooling-off period requirements during an intra-fund transfer.
ASIC Corporations (Superannuation: Accrued Default Amount and Intra-Fund Transfers) Instrument 2016/64 is due to expire on 1 April 2026. The relief will be extended until 1 April 2031.
ASIC assessed that the relief is operating effectively and continues to form a necessary part of the legislative framework. Responses are requested by 18 February 2026.
ASIC proposes updates to legislative instruments about financial reporting
On 30 January 2026, ASIC announced that it is seeking feedback on its proposals to remake three legislative instruments relating to financial reporting relief:
ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191.
ASIC Corporations (Electronic Lodgment of Financial and Sustainability Reports) Instrument 2016/181.
ASIC Corporations (Disregarding Technical Relief) Instrument 2016/73.
ASIC is also seeking feedback on its proposal to allow ASIC Corporations (Offer Information Statements) Instrument 2016/76 to sunset on 1 April 2026. This means the instrument will cease to operate and entities will no longer be able to rely on it.
Responses are requested by 27 February 2026.
See ASIC consultation.
APRA
APRA announces executive change
On 19 January 2026, APRA advised that the current Executive Director, General Insurance and Banking, Jane Magill, had been appointed Executive Director, Life Insurance, Private Health Insurance and Superannuation. Ms Magill’s appointment will be effective from 16 February 2026.
See APRA media release.
APRA explains its role in private health insurance premium increases
On 28 January 2026, APRA outlined its role in private health insurance (PHI) premium increases. Key takeaways include:
Each year, private health insurers apply for approval to change premiums, which by law cannot be changed without approval from the Minister for Health, Disability and Ageing (the Minister), via the PHI premium round.
As Australia’s prudential regulator for PHI, APRA advises the Department of Health, Disability and Ageing (the Department) on whether premium increase requests would result in an ‘adverse prudential outcome’ and does not approve premium increases.
The process is conducted by the Department. Applications are typically submitted in November for 1 April changes and must be approved by the Minister unless they are contrary to the public interest. Application forms are published in September in collaboration with APRA.
APRA to monitor in1Bank’s return of deposits
Following in1Bank Limited’s (inBank) announcement that it intends to return all funds to depositors and relinquish its licence to operate as an authorised deposit-taking institution, APRA will monitor the return of deposits to ensure they are orderly and timely. See APRA media release.
Other bodies and regulators
ASX appoints members to newly constituted Advisory Group on Corporate Governance
On 29 January 2026, ASX announced the appointment of seven members to its newly constituted Advisory Group on Corporate Governance (AGCG), chaired by Dr Philip Lowe.
The AGCG replaces the ASX Corporate Governance Council and will support ASX in developing the Corporate Governance Principles and Recommendations, in line with recommendations of an expert review panel.
AUSTRAC backs newly regulated sectors with release of AML/CTF program starter kits
On 30 January 2026, AUSTRAC announced the release of its anti-money laundering program starter kits (kits), designed specifically to help small businesses in newly regulated sectors to meet their compliance obligations and manage money laundering and terrorism financing risks, while also reducing the time and cost of compliance.
From 1 July 2026, businesses providing certain designated services commonly provided by lawyers, accountants, real estate agents, conveyancers and jewellers will have obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (AML/CTF Act).
The kits set out step-by-step actions these businesses can take to build their own anti-money laundering program and include practical tools to help businesses comply with the AML/CTF Act.
ACSI: New edition of Governance Guidelines highlights critical role of company directors
On 20 January 2026, the Australian Council of Superannuation Investors (ACSI) released its two-yearly update of its Governance Guidelines, which articulate the expectations of long-term investors on material governance and sustainability issues at listed companies.
See ACSI media release.
ACSI: ASX consultation a positive step toward strengthening shareholder rights
The ACSI welcomed the release of the ASX’s consultation on potential changes to listing rules governing shareholder approval requirements and admission status.
See ACSI media release.
ATO: Payday Super legislation introduced
Employers must prepare to pay super contributions on payday from 1 July 2026. While this measure is not yet law, it is intended to take effect from 1 July 2024 and will require employers to:
Pay superannuation guarantee (SG) at the same time as salary and wages
SG contributions will need to arrive in employees’ super funds within seven business days of payday. If it is not received by the super fund within this require timeframe, employers will be liable for the superannuation guarantee charge.
See ATO media release
Governance Institute of Australia: Handling confidential market-sensitive information
The Australasian Investor Relations Association (AIRA) and Governance Institute of Australia (GIA) have updated ‘Handling confidential, market-sensitive information: Principles of good practice’, a guide designed to help organisations safeguard sensitive data and comply with continuous disclosure rules.
A high-level summary of the principles includes:
Develop internal systems to protect confidential, market-sensitive information.
Maintain an insider list when conducting a confidential, market-sensitive transaction.
Ensure directors, executives and employees are aware of their confidentiality obligations.
Require advisers and other service providers to enter into confidentiality agreements before passing on confidential, market-sensitive information.
Know which, when and how investors or potential investors are being brought into the ‘inside’.
See GIA news update. Also see GIA resource centre to find the complete set of principles and detailed explanation of each.
AICD welcomes new ASX Advisory Group
On 29 January 2026, the Australian Institute of Company Directors (AICD) announced that it welcomed the ASX’s announcement on the formation of the Advisory Group on Corporate Governance and congratulates the appointed members.
The AICD shared that it is an important step in ensuring that the ASX Corporate Governance Principles and recommendations represent a widely accepted benchmark for good governance in Australia. This will strengthen Australia’s capital markets and reflect the best collective interests of ASX listed entities, their shareholders and the market.
G+T articles
G+T Insight – AML/CTF reform – Peter Reeves, Georgina Willcock, Vince Battaglia, Emily Shen, Anthony Basa, Amiinah Dulull and Maya Ruber (19 January 2026).
G+T Insight – Enhanced regulatory sandbox under review – Peter Reeves, Georgina Willcock, Vince Battaglia, Emily Shen, Anthony Basa, Amiinah Dulull, Maya Ruber and Billy Elsum (22 January 2026).
G+T Insight – ASIC finalises relief for stablecoins and wrapped tokens – Peter Reeves, Georgina Willcock, Vince Battaglia, Emily Shen, Anthony Basa, Amiinah Dulull, Maya Ruber and Billy Elsum (28 January 2026).
Calendar dates
10 March 2026 – AICD Australian Governance Summit 2026.
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 (see also summary of obligations under AML/CTF reforms).
25 June 2026 – Final report of Senate inquiry into greenwashing due.
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 (Cth).
13 July 2026 – Key CDR obligations commence for non-bank lenders.
10 December 2026 – Automated decision-making processes under the Privacy and Other Legislation Amendment Bill 2024 to commence.
1 July 2027 – Mandatory climate-related financial disclosures for Group 3 entities apply in respect of financial years starting on or after this date.