On the pulse
ASIC flags risks in offshore outsourcing after review identifies governance gaps – see media release.
ASIC’s annual report reveals strong growth in enforcement action and investigations and keen focus on strengthening markets – see media release.
ASIC updates guidance on communicating audit findings to directors, audit committees and senior managers – see media release.
ASIC: Protecting financial futures: ASIC's priorities in credit – see speech.
ASIC sends clear message to super trustees amid glaring retirement communications gaps – see media release.
APRA calls for stronger action by platform trustees – see media release.
Opening Statement to Senate Economics Legislation Committee – October 2025 – see speech.
AUSTRAC releases guidance for current and new reporting entities – see media release.
New legislation to modernise the regulation of payment service providers – see media release.
Further streamlining and coordination of financial sector regulation – see media release.
ASIC
ASIC flags risks in offshore outsourcing after review identifies governance gaps
ASIC is calling on financial services entities to strengthen governance and risk management after a review found weaknesses in the use of offshore service providers (OSPs) exposing consumers and investors to potential harm.
The review into the use of OSPs by financial advice licensees and responsible entities of registered managed investment schemes found that the quality of risk management arrangements relating to their use varied significantly, with some entities failing to have a framework in place.
ASIC has also flagged critical risks associated with the loss of control over a businesses’ key functions to OSPs, disruptions to operational services and conflicting obligations for OSPs subject to foreign laws.
ASIC will continue to monitor the governance and risk management frameworks of financial services entities, and where necessary, hold them to account for failing to have the right processes in place to protect consumers and investors’ interests.
See ASIC media release, ASIC Review of offshore outsourcing – Financial services advice licensees and ASIC Review of offshore outsourcing – Responsible entities.
ASIC’s annual report reveals strong growth in enforcement action and investigations and keen focus on strengthening markets
ASIC has released its annual report for 2024–2025. The report shows that ASIC has ramped up enforcement activity and commenced a significant body of work to address regulatory complexity and strengthen Australia's markets.
ASIC Chair Joe Longo said that investments in the agency’s operational capabilities, including in its digital technologies, cyber resilience and data analytics, had paid dividends.
See ASIC media release and also ASIC annual report.
ASIC includes an additional named stablecoin and makes clarifying amendments
ASIC Corporations (Amendment) Instrument 2025/679 amends ASIC Corporations Stablecoin Distribution Exemption) Instrument 2025/631 to include an additional named stablecoin and make clarifying amendments.
See ASIC regulatory tracker.
ASIC updates guidance on communicating audit findings to directors, audit committees and senior managers
ASIC has updated guidance on how, when and which audit file review findings will be communicated to directors, audit committees and senior managers.
The revised Regulatory Guide 260 Communicating findings from audit files to directors, audit committees or senior managers (RG 260) provides practical guidance for directors, audit committees and senior managers of companies, responsible entities, superannuation trustees, disclosing entities and audit firms.
The updates reflect:
ASIC’s new responsibilities and powers following law reform to regulate the financial reporting and audit requirements of registrable superannuation entities (RSEs).
That the Australian Securities and Investments Commission Act 2001 (ASIC Act) now allows ASIC to communicate findings from audit file reviews to the relevant directors of superannuation trustees.
See ASIC media release and also ASIC RG 260.
ASIC: Protecting financial futures: ASIC's priorities in credit
On 14 October 2025, ASIC Commissioner Alan Kirkland provided a keynote address at Credit Law 2025. Key takeaways include:
ASIC’s role is to ensure consumer credit protections are universally applied and enjoyed. That’s why ongoing work to examine compliance across the sector continues to be a priority.
Key areas of focus include mortgage brokers, motor vehicle finance, financial hardship, debt management, credit repair and debt collection.
ASIC continues to take action across the spectrum, wherever it sees credit-related misconduct. Entities whose conduct causes harm to consumers – or harm to their financial futures – should expect ASIC to take an active interest.
See ASIC speech.
ASIC sends clear message to super trustees amid glaring retirement communications gaps
ASIC has released Report 818 From superficial to super engaged: Better practices for trustee retirement communications (Report 818), which summarises the observations and findings identified from ASIC’s review of the retirement communications practices of 12 registrable superannuation entity licensees between 1 July 2022 and 11 December 2024.
This review represents the next phase of ASIC’s oversight of Australia’s retirement system, following the implementation of the retirement income covenant on 1 July 2022.
Report 818 found some trustees offer one-size fits all retirement communications aimed primarily at pre-retirees, missing opportunities to engage with members throughout retirement and provide more meaningful support. ASIC is urging trustees to carefully consider the calls to action and better practice case studies outlined in this report to identify and address blind spots in their retirement communications.
See ASIC media release.
APRA
APRA calls for stronger action by platform trustees
APRA has called on superannuation trustees to accelerate and escalate efforts to safeguard members’ investments held in platform products.
This follows:
APRA’s publication of a letter to platform trustees on 9 October 2025, which sets out APRA’s key findings and required actions following its thematic review of platforms.
ASIC’s investigation and enforcement action relating to the collapse of the Shield and First Guardian managed investment schemes, numerous financial advisers and Equity Trustees Superannuation Limited.
The recent commitment by Macquarie Investment Management Ltd (MIML) to pay compensation to members who invested in Shield via the MIML platform.
APRA’s letter:
Calls on platform trustees to lift standards relating to onboarding, ongoing monitoring and promoting member outcomes.
Outlines APRA’s observations on weaker and current better industry practices.
Requires platform trustees to confirm Financial Accountability Regime (FAR) accountabilities; consider whether they have breached the prudential standards and obligations; and determine a time-bound action plan to lift standards.
See APRA media release and also APRA letter.
Opening statement to Senate Economics Legislation Committee – October 2025
Chair of APRA, John Lonsdale provided his opening statement to the Senate Economics Legislation Committee on 9 October 2025. Key takeaways include:
So far, APRA has announced nine initiatives to increase proportionality and reduce regulatory burden.
APRA has written to trustees requiring them to accelerate and escalate efforts to safeguard member investments held in platform products after an APRA review found some weak practices in relation to onboarding and monitoring of platform products.
Another top priority in the months ahead is finalising reforms to APRA’s cross-industry framework for governance.
In July, APRA announced it was keeping its macroprudential policy settings, including the mortgage serviceability buffer, on hold.
APRA intends to further strengthen cyber resilience across all APRA’s regulated industries given the recent escalation of attacks.
Another key initiative will be the publication in coming months of the results of APRA’s inaugural System Stress Test, designed to evaluate interconnectedness between the banking and superannuation sectors.
See APRA speech.
APRA key actions and proceedings
APRA disqualifies two directors of Xinja Bank under Financial Accountability Regime – APRA has disqualified the former CEO of Xinja Bank and one other director from being or acting as accountable persons of any authorised deposit-taking institution under the Financial Accountability Regime for failing to comply with their accountability obligations – see APRA media release.
APRA confirms Westpac has met the obligations of the Court Enforceable Undertaking – APRA has determined that Westpac has completed a multi-year risk transformation program required by APRA and, consequently, APRA will remove the remaining $500 million capital add-on applied to Westpac – see APRA media release.
AUSTRAC
AUSTRAC releases guidance for current and new reporting entities
AUSTRAC has released reforms guidance to help current and future reporting entities comply with changes to the AML/CTF legislation.
From 1 July next year, thousands of new businesses will come under the AML/CTF regime, including real estate agents, accountants, lawyers and dealers in precious metals and stones. For current reporting entities, the new laws will come into force on 31 March 2026.
See AUSTRAC media release.
Legislation and proposed legislation
New legislation to modernise the regulation of payment service providers
The government has released the exposure draft legislation that lays the foundations for a new regulatory framework for payment service providers.
This draft legislation delivers:
A core licensing regime that will set clearer obligations on payment service providers that perform specific functions.
A graduated regulatory framework for stored value facilities like prepaid accounts, stablecoin issuers or wallets that hold customer funds.
The reforms allow a more agile regulatory system that tailors obligations to the size and type of providers.
Submissions close 6 November 2025.
See Treasury consultation and also Treasury media release.
Further streamlining and coordination of financial sector regulation
On 17 October 2025, the government released the second edition of the Regulatory Initiatives Grid (RIG). First launched in December 2024, the RIG maps out upcoming reforms and regulatory activities, helping industry, regulators and government work more closely together.
Following feedback from stakeholders and participants at the Economic Reform Roundtable, the government asked financial regulators to strengthen coordination, including by streamlining and harmonising data collection and sharing. As part of this, three core principles have been embedded into the RIG:
Minimising overlap in significant consultations and non‑routine data collection activities.
Sequencing and timing linked initiatives appropriately.
Reducing duplication in data collection processes.
See Treasury media release and also Treasury RIG.
Calendar dates
24 October 2025 – Deadline for submissions to Treasury consultation on exposure draft of Treasury Laws Amendment Bill 2025: Digital asset and tokenised custody platforms.
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.
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.
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.