Financial Services: Regulatory Recap – Week commencing 26 October 2026

On the pulse

• ASIC consults on implementation of new digital asset laws – see consultation
• ASIC proposes to remake IDR data reporting instrument – see media release
• ASIC moves to extend and strengthen CFD consumer protections – see media release
• ASIC review highlights need for stronger scrutiny of super fund valuations – see media release
• ASIC review finds room for improvement in mortgage brokers’ best interests duty practices – see media release
• ASIC Chair: trust, transparency and the future of financial reporting – see keynote address
• ASIC Annual Forum 2026 explores how Australia can stay ahead of the next wave of global change – see announcement
• ASIC increases net tangible assets threshold – see media release
• ASIC releases its Annual Report for 2025-26 – see media release
• ASIC Market Integrity Update (October 2026) – see update
• ASIC updates Reportable Situations dashboard for financial year 2025–26 – see media release
• APRA welcomes Basel endorsement of Australia’s bank leverage ratio framework – see announcement
• APRA and RBNZ complete joint bank stress test to promote trans-Tasman resilience – see announcement
• APRA publishes 2025-26 Annual Report – see report
• APRA publishes Deputy Chair David Bradbury’s speech to FSC Retirement Summit – see media release
• ATO targets promoters of early release of super schemes – see media release

ASIC

ASIC consults on implementation of new digital asset laws

On 15 October 2026, ASIC announced that it commenced consultation on guidance and standards to implement new laws for digital asset platforms and tokenised custody platforms commencing on 8 April 2027.

ASIC’s Consultation Paper 392 Digital asset law reform implementation: Proposed standards and guidance outlines its proposed approach to standards and regulatory guidance about complying with the new digital asset framework introduced by the Corporations Amendment (Digital Assets Framework) Act 2026 (Cth).

The consultation package includes draft guidance on how to comply with the new laws, proposed standards on asset-holding activities, trading and settlement activities, and proposed financial requirements for licensees.

Submissions close 27 November 2026.

ASIC proposes to remake IDR data reporting instrument

On 16 October 2026, ASIC announced that it is seeking feedback on its proposal to remake a legislative instrument which specifies the internal dispute resolution (IDR) information that financial firms must report to ASIC.

ASIC Corporations (Internal Dispute Resolution Data Reporting) Instrument 2022/205 is scheduled to expire on 1 April 2027.

ASIC proposes to remake the instrument for a period of five years. The only substantive change proposed is to allow small banks (i.e. those on the lowest tier of APRA’s banking prudential framework) to report their IDR data annually rather than every six months. This formalises a commitment made in the Council of Financial Regulators’ review into small and medium-sized banks published in 2025.

In addition to general feedback, ASIC invites feedback specifically on whether the reduction in reporting frequency proposed for small banks should be extended to all reporting firms.

Submissions close 13 November 2026.

ASIC moves to extend and strengthen CFD consumer protections

On 12 October 2026, ASIC announced that it is seeking feedback on its proposal to extend and amend the consumer protection measures governing contracts for difference (CFDs), with the product intervention order (PIO) proposed to remain in place for a further 10 years.

The updates are designed to preserve protections that have materially reduced investor harm while modernising the PIO to ensure it treats products with the same economic characteristics and risks as CFDs consistently, whether they are settled in cash, by set-off or through the transfer of digital assets.

ASIC is seeking feedback on its proposal to extend and amend the ASIC Corporations (Product Intervention Order—Contracts for Difference) Instrument 2020/986 (CFD PIO).

ASIC proposes to continue the CFD PIO protections for a further 10 years and proposes to make targeted amendments to address industry practices and product developments identified through ASIC’s regulatory work since the CFD PIO first came into effect.

Submissions close 9 November 2026.

See ASIC’s consultation.

ASIC review highlights need for stronger scrutiny of super fund valuations

On 14 October 2026, ASIC announced that its second review into the financial reporting and audit of superannuation funds found that further improvement is needed in how some super funds and auditors assess and scrutinise the value of unlisted investments.

ASIC’s review of 42 registrable superannuation entity financial reports and six audits found persistent concerns around valuations.

ASIC review finds room for improvement in mortgage brokers’ best interests duty practices

On 13 October 2026, ASIC announced that its review found that the mortgage broking industry should strengthen how it demonstrates that home loan recommendations are in their customers’ best interests. The review examined 13 credit licensees that make up eight large mortgage broker groups. It looked at how they ensure their credit representatives comply with the mortgage broker best interests duty and how they handle consumer complaints.

ASIC Chair: trust, transparency and the future of financial reporting

On 14 October 2026, ASIC published Chair Sarah Court’s keynote address at the G100 – CPA Australia Annual Reporting Luncheon in Melbourne. Key points include:

• Few areas of ASIC’s broad remit are as fundamental to market integrity and the efficient allocation of capital as trusted, high-quality financial reporting.
• ASIC is focused on maintaining high standards of accountability and transparency while contributing to efforts to ensure Australia’s reporting framework remains effective, proportionate and supportive of productivity.
• Regardless of the evolving regulatory environment, one requirement does not change: financial information must be accurate, accessible and reliable.

ASIC Annual Forum 2026 explores how Australia can stay ahead of the next wave of global change

On 12 October 2026, ASIC announced that it released the program for its Annual Forum 2026, which will bring together leaders from business, financial services, markets, government, and the community in Sydney on 17 and 18 November.

The forum's theme, ‘Staying ahead of the next wave’, examines how Australia can safeguard the integrity of its financial system and maintain confidence for consumers and markets in an environment of accelerating and varied global change.

ASIC increases net tangible assets threshold

On 21 October 2026, ASIC announced that it released ASIC Corporations (Amendment) Instrument 2026/708, which amends ASIC Corporations (Financial Requirements for Responsible Entities, IDPS Operators and Corporate Directors of Retail CCIVs) Instrument 2023/647 (Principal Instrument). The amendments increase the minimum financial thresholds in the net tangible assets (NTA) requirement applying to responsible entities of registered schemes, Investor Directed Portfolio Service operators and corporate directors of retail corporate collective investment vehicles and introduce an annual indexation mechanism to update those thresholds over time. The amendments take effect on 1 July 2027.

Under section 912A(1)(d) of the Corporations Act 2001 (Cth) (Corporations Act), Australian financial services licensees must maintain adequate financial, technological and human resources. The NTA requirement in notional section 912AA (as inserted by the Principal Instrument) supports this obligation and reflects the objectives set out in Regulatory Guide 166 AFS licensing: Financial requirements. The minimum thresholds were last amended on 1 July 2013 under Superseded Class Order [SCO 13/760], and the increases restore the real value of the thresholds to reflect inflation since that time.

Key threshold changes include:

• Notional section 912AA(4)(a)(i): $150,000 increased to $200,000
• Notional section 912AA(4)(a)(ii): $5 million increased to $7 million
• Notional section 912AA(4)(b)(i): $10 million increased to $14 million
• Notional sections 912AA(5)(b)(iv) and (5)(b)(v)(A): $500,000 increased to $700,000
• Notional section 912AA(8)(a)(i): $150,000 increased to $200,000.

The term ‘Tier $500,000 class assets’ is renamed ‘eligible assets’ to reflect the increased thresholds.

New notional sections 912AA(8A) to (8C) establish the indexation mechanism. From 1 July 2027, amounts are indexed annually on 1 July by multiplying the previously indexable amount by an indexation factor derived from the All Groups Consumer Price Index (weighted average of eight capital cities) for the March quarters in the preceding and second preceding indexation years. Indexed amounts are rounded to the nearest $1,000 (rounding up if ending in exactly $500).

The amendments follow Consultation Paper 388: Net tangible assets requirement for responsible entities.

ASIC releases its Annual Report for 2025-26

On 19 October 2026, ASIC announced that it released the ASIC Annual Report for 2025-26, which describes its performance for the year ending 30 June 2026, including its focus on addressing misconduct and delivering outcomes for consumers, investors and the market. The report showed that ASIC secured court orders for civil penalties of $830 million and helped secure more than $580 million in repayments and refunds for consumers and investors during 2025-26.

ASIC commenced 260 formal investigations and 32 civil proceedings involving 65 defendants and completed 1,012 surveillances.

ASIC Market Integrity Update (October 2026)

On 22 October 2026, ASIC published its Market Integrity Update – Issue 179 (October 2026), which includes information about how:

• ASIC has proposed guidance and standards to implement new laws for digital asset platforms and tokenised custody platforms that begin in April 2027.
• ASIC has strengthened safeguards for automated and AI-enabled trading while streamlining regulatory requirements for securities and futures market participants under incoming changes to its Market Integrity Rules.
• ASIC is stepping up its oversight of digital asset businesses as they transition to licensing following the end of its no-action position on 30 September 2026.
• ASIC is calling on market intermediaries to urgently review and further strengthen their controls to protect against the ongoing threat of share sale fraud.
• ASIC and APRA have urged financial market entities to move from gaining awareness of risks linked to frontier AI to taking decisive action.
• After observing some poorer practices, ASIC has commenced a review of suspense and error accounts, focused on examining licensees’ practices and identifying areas where controls can potentially be strengthened.
• ASIC is seeking feedback on its proposal to extend and amend the consumer protection measures governing contracts for difference, with the product intervention order proposed to remain in place for a further 10 years.
• Reporting entities should prepare for minor changes to over-the-counter derivative transaction reporting and commence reporting foreign exchange target redemption forward transactions using the most appropriate unique product identifier.
• ASIC and Financial Markets Standards Board extend their cooperation for a further three years to promote global standards for fair and effective wholesale financial markets.

ASIC updates Reportable Situations dashboard for financial year 2025–26

On 19 October 2026, ASIC announced that it updated the Reportable Situations dashboard for financial year 2025–26, providing information relating to volume of reports submitted, nature of breaches by product and issue, customer impact, rectification of breaches by firms and customer remediation methods.

ASIC regulatory tracker

• ASIC Corporations (Amendment) Instrument 2026/708 – Updates financial requirements for responsible entities, investor-directed portfolio service operators, and corporate directors of retail corporate collective investment vehicles. It raises net tangible assets thresholds and introduces annual indexation to preserve their real value over time.
• Regulatory Guide 78 Breach reporting by AFS licensees and credit licensees (RG 78) – Updated to correct references to investigations taking more than ‘30 days’ to ‘60 days’ in Figure 1, RG 78.70, Example 11 and Table 8.

APRA

APRA welcomes Basel endorsement of Australia’s bank leverage ratio framework

On 15 October 2025, APRA announced that it welcomed the Basel Committee on Banking Supervision’s (BCBS) finding that the regulations implementing the leverage ratio framework in Australia are compliant with BCBS standards. This is the highest possible grade.

The finding follows an assessment by the BCBS’s Regulatory Consistency Assessment Programme (RCAP), which was published on 13 October.

The leverage ratio complements APRA’s risk-based bank capital framework by limiting the amount of debt a bank can take on relative to its capital. It measures the proportion of a bank’s assets that is funded through equity (capital) rather than debt, providing an alternative perspective on the bank’s capital strength.

It was introduced as part of the Basel III reforms to restrict the build-up of leverage in the banking sector. In Australia, the BCBS leverage ratio standard is implemented mainly through APRA’s Prudential Standard APS 110 Capital Adequacy. It only applies to the six banks that have been approved to use the internal ratings-based approach for credit risk.

APRA and RBNZ complete joint bank stress test to promote trans-Tasman resilience

On 15 October 2026, APRA announced that it, along with the Reserve Bank of New Zealand (RBNZ), completed the 2026 Trans-Tasman Stress Test, their first joint stress testing exercise since 2017.

The results indicate the banking systems would remain resilient through a severe downturn in both economies. Notwithstanding substantial loss levels and pressure on capital and liquidity, banks continued to support households and businesses by providing credit throughout the stress period.

APRA publishes 2025–26 Annual Report

On 14 October 2026, APRA published its Annual Report for the 2025–26 financial year, which covers APRA’s performance, management and accountability, other statutory reporting requirements and financial statements.

APRA sector statistics

• APRA and ASIC publish latest data on life insurance claims and disputes
• APRA releases latest Points of Presence Statistics for authorised deposit-taking institutions

APRA publishes Deputy Chair David Bradbury’s speech to FSC Retirement Summit

On 22 October 2026, APRA published a speech by Deputy Chair David Bradbury to the 2026 Financial Services Council (FSC) Retirement Summit in Sydney. In ‘Building trust and confidence to deliver on the promise of super’, Mr Bradbury shared some of his initial observations and insights about the industry and APRA’s approach to supervising it since joining APRA in September.

Other bodies and regulators

ATO targets promoters of early release of super schemes

On 22 October 2026, the ATO announced that it released the 2025–26 data for compassionate release of super. ATO Deputy Commissioner Ben Kelly said that while the latest data is promising, the ATO remains concerned that health practitioners and third-party facilitators continue to utilise predatory practices to get individuals to inappropriately access their super for financial gain.

G+T articles

• G+T Insight – NSW Court of Appeal upholds decision on material adverse change – Nirangjan Nagarajah, Adam Laura, Colleen Platford and Alexandra Whitby (14 October 2026)
• G+T Insight – Social sector spotlight – October 2026 – Darren Fittler, Elizabeth Wighton, Neha Sharma and Caroline Conan-Davies (15 October 2026)
• G+T Insight – Fundraising without borders: the push for charitable fundraising law harmonisation – Darren Fittler, Elizabeth Wighton, Neha Sharma and Caroline Conan-Davies (15 October 2026)
• G+T Insight – Cyber resilience: securing Australia's energy transition – Ross Phillipson (15 October 2026)
• G+T Insight – ASIC issues reminder after extending class no-action letter for digital asset businesses – Peter Reeves, Georgina Willcock, Vince Battaglia, Emily Shen, Stephanie Choong, Amiinah Dulull and Maya Ruber (15 October 2026)
• G+T Insight – Treasury consults on enhanced data collection for managed investment schemes – Peter Reeves, Georgina Willcock, Vince Battaglia, Emily Shen, Amiinah Dulull and Maya Ruber (19 October 2026)
• G+T Insight – Data centres under new rules: how Victoria’s plan compares across Australia – Zac Kerr, Ben Cosentino, Stuart Cormack, Dan Solomon, Claire Scanlon and James Frixou (19 October 2026)
• G+T Insight – ASIC consults on standards and guidance for new digital asset laws – Peter Reeves, Georgina Willcock, Vince Battaglia, Emily Shen, Stephanie Choong, Amiinah Dulull and Maya Ruber (20 October 2026)
• G+T Insight – A guide to initial public offerings in Australia – Adam D’Andreti, Peter Cook, Sarah Turner, Rachel Bassil, Craig Semple, Simon Rear, Ilona Millar, Julian Cheng and Matthew Charman (20 October 2026)
• G+T Insight – Fintech: how the financial innovation industry is taking shape around the world (2026) – Australia – Peter Reeves and Maya Ruber (23 October 2026)

Calendar dates

• 2 November 2026 – Final report of Senate inquiry into greenwashing due.
• 5 November 2026 – ASIC consultation on updates to RG 265 and 266 to reflect amended Market Integrity Rules concludes.
• 9 November 2026 – Consumer data sharing obligations commence for a non-bank lender that is an 'initial provider’.
• 30 November 2026 – Joint Select Committee on Artificial Intelligence due to report.
• 4 December 2026 – Amendments to the Corporations Act to expand substantial holding disclosure to commence.
• 10 December 2026 – Automated decision-making processes under the Privacy and Other Legislation Amendment Bill 2024 to commence.
• 17 March 2027 – Final report of Senate inquiry into greenwashing due.
• 31 March 2027 – Obligations for covered banking services under Scams Prevention Framework commence.
• 9 April 2027 – Corporations Amendment (Digital Assets Framework) Act 2026 commences operation.
• 9 April 2027 – New licensing exemptions for foreign financial service providers will commence.
• 1 July 2027 – Annual reporting requirements for entities subject to the Commonwealth Procurement Rules to include high-value consultancy contracts.
• 1 July 2027 – Mandatory climate-related financial disclosures for Group 3 entities apply in respect of financial years starting on or after this date.
• 1 July 2027 – New director ID requirements to apply.