Regulatory Recap | Week commencing 3 August 2026

On the pulse

• Draft regulations on Deferred Sales Model for add-on insurance class exemptions – see consultation
• ASIC consults on simplifications to sell-side research guidance – see media release
• ASIC consults on remaking low-volume financial market relief – see media release
• ASIC speech on building trust – see transcript
• ASIC announces changes to net tangible assets requirement for responsible entities – see media release
• ASIC review finds mortgage offset account failures cost customers over $55 million, publishes REP 837 – see speech
• APRA updates exemption from section 66 of the Banking Act 1959 – see media release and media release
• APRA releases response to consultation on remaking Level 3 conglomerate standards – see media release
• End of Alternate Submission Process for ADIs and RFCs – see media release
• APRA releases Monthly Authorised Deposit-taking Institution Statistics for June 2026 – see statistics
• ACCC proposes to authorise financial and cyber crime information sharing arrangements in superannuation industry – see draft determination
  

Legislation and proposed legislation

Draft regulations on Deferred Sales Model for add-on insurance class exemptions

On 27 July 2026, Treasury released draft regulations to extend the exemption of certain classes of add-on insurance products from the Deferred Sales Model regime until 5 October 2031.

See the Treasury consultation. Submissions close 7 August 2026.

ASIC

ASIC consults on simplifications to RG 264: Sell-side research

ASIC seeks feedback on its proposal to simplify Regulatory Guide 264 Sell-side research (RG 264), reducing guidance from 42 pages to 8 pages. Sell-side research is prepared by Australian financial services licensees such as investment banks and stockbrokers to help clients make investment decisions, including whether to participate in upcoming initial public offerings. The consultation follows ASIC’s February 2025 discussion paper on public and private markets.

See ASIC announcement and consultation. Submissions close 21 August 2026.

ASIC consults on remaking low-volume financial market relief

On 23 July 2026, ASIC opened consultation on a proposal to remake ASIC Corporations (Low Volume Financial Markets) Instrument 2016/888. The instrument exempts low-volume financial markets from the requirement to hold an Australian market licence and is due to sunset on 1 October 2026. ASIC says the only substantive proposed change is to increase the transaction value threshold from $1.5 million to $2.5 million.

See ASIC consultation. Submissions close 20 August 2026.

ASIC speech on building trust

On 22 July 2026, ASIC published the transcript of Commissioner Alan Kirkland’s speech at the Mortgage and Finance Association of Australia Conference in Melbourne. He highlighted the following points:

• home lending is the largest area of consumer credit in Australia, with 81% of new residential mortgages arranged by brokers
  
• it is essential that brokers maintain trust by putting customers first, providing quality advice and remedying failures quickly
  
• ASIC is conducting a review of the mortgage broking sector to better understand how well brokers are complying with their best interests duty.

ASIC announces changes to net tangible assets requirement for responsible entities

On 30 July 2026, ASIC announced changes to the net tangible assets (NTA) requirement for responsible entities of registered managed investment schemes, operators of investor directed portfolio services and corporate directors of retail corporate collective investment vehicles. ASIC will increase minimum regulatory capital requirements and index them annually.

The announcement follows ASIC’s Consultation Paper 388 Net tangible assets requirement for responsible entities (CP 388). The changes commence on 1 July 2027. The thresholds applying from that date include the first annual indexation adjustment.

ASIC review finds mortgage offset account failures cost customers over $55 million, publishes REP 837

On 29July 2026, ASIC published Report 837 Offsets, out of mind: Banks fall short on mortgage offset account promises (REP 837). The report reviews the offset practices of eight banks representing more than 70% of Australia’s $2.5 trillion home loan market. ASIC says reports made between 1 September 2023 and 31 August 2025 show that banks paid more than $55 million in customer compensation for offset account failures. ASIC expects further compensation. Australians held about $349.1 billion in offset accounts in March 2026, up 28% over the previous two years. The report identifies four concerns:

1. banks struggled to readily identify customer offset account requests
   
2. banks detected offset account failures inconsistently
   
3. banks failed to compensate customers and were slow to fix issues
   
4. customers lacked visibility of information on offset accounts.
   

ASIC reviewed data for 204,000 home loans settled between 1 March and 31 August 2025. It will provide feedback to the banks involved and, where appropriate, take further regulatory action.

ASIC confirmed that it reviewed eight banks representing more than 70% of the Australian home loan market and found examples of offset account failures that left customers paying more interest than they should.

See Sarah Court’s speech at the Mortgage Offset Press Conference.

APRA

APRA updates exemption from section 66 of the Banking Act 1959

On 23 July 2026, APRA released its response to consultation on minor proposals for instruments relating to section 66 of the Banking Act 1959. APRA also updated a class exemption that allows foreign entities to use restricted terms when issuing debt securities in wholesale capital markets. See APRA’s response letter and final legislative instrument.

Finalising exemptions to section 66 of the Banking Act 1959

On 18 June 2025, APRA consulted on proposed minor amendments to instruments relating to section 66 of the Banking Act 1959, and on 17 September 2025, APRA published its response and flagged one outstanding policy issue relating to an exemption for foreign banks that issue debt securities in Australian wholesale capital markets. On 23 July 2026, APRA announced that it made a minor amendment to its proposal to incorporate submission feedback and better align with the consultation objectives – see announcement.

APRA releases response to consultation on remaking Level 3 conglomerate standards

On 27July 2026, APRA released its response to submissions on the consultation to remake three Level 3 conglomerate prudential standards ahead of their scheduled sunset on 1 October 2026. APRA will remake Prudential Standards 3PS 221 Aggregate Risk Exposures, 3PS 222 Intra-group Transactions and Exposures and 3PS 310 Audit and Related Matters with administrative updates only. The updates do not introduce new requirements for conglomerate groups.

On 30 July 2026, APRA released a response letter to its consultation on remaking the Level 3 conglomerate standards which are otherwise due to sunset on 1 October 2026. APRA will now remake these standards with administrative updates. View the consultation response materials here.

End of alternate submission process for ADIs and RFCs

On 27 July 2026, APRA announced when the Alternate Submission Process will end for ADI reporting collections that have moved to APRA Connect. APRA Connect becomes mandatory for the following reporting periods:

• liquidity 210.5 monthly returns – 31 July 2026
  
• economic and financial statistics – 31 August 2026
  
• all other migrated ADI reporting collections – 30 September 2026.
  

The Alternate Submission Process ends for each collection after the relevant date.

APRA releases Monthly Authorised Deposit-taking Institution Statistics for June 2026

See  statistics.

ACCC 

ACCC proposes to authorise financial and cyber crime information sharing arrangements in superannuation industry

On 24 July 2026, the ACCC released a draft determination proposing to grant authorisation to the Association of Superannuation Funds Australia Ltd and other specified participants. If granted, the authorisation would allow the participants to negotiate collectively and exchange information through cyber and financial crime information sharing platforms to identify and respond to cyber and financial crime threats across the superannuation industry.

Submissions close 10 August 2026.

G+T articles

G+T Insight – Corporate Advisory Update | July 2026 – Ilona Hunnisett (24 July 2026)

G+T Insight – The Competitive Edge Podcast – Moya Dodd and Matt Rubinstein (21 July 2026)

G+T Insight – Pilbara 3.0: why the next Pilbara won’t happen by accident – Clare Pope (28 July 2026)

G+T Insight – Tougher modern slavery laws on the horizon – Andrew Hii, Claire McGrath (27 July 2026)

G+T Insight – AI disputes: AI in the boardroom – practical tips for boards and directors – Richard Harris, Peter Munro, Crispian Lynch, Philippa Hofbrucker, Kasia Dziadosz-Findlay (27 July 2026)

Calendar dates 

• 7 August 2026 – Submissions to Treasury consultation on draft regulations extending the Deferred Sales Model add-on insurance class exemptions close
• 10 August 2026 – Submissions to ACCC consultation on proposal to authorise financial and cyber crime information sharing arrangements in superannuation industry
• 20 August 2026 – Submissions to ASIC consultation on remaking the low-volume financial markets relief (ASIC Corporations (Low Volume Financial Markets) Instrument 2016/888) close
• 21 August 2026 – Submissions to ASIC consultation on simplifying RG 264 Sell-side research close
• 2 November 2026 – Final report of Senate inquiry into greenwashing due
• 9 April 2027 – New digital asset licensing under the Corporations Amendment (Digital Assets Framework) Bill 2025 commences
• 9 April 2027 – New exemption regime for foreign financial services providers commences
• 1 July 2027 – Mandatory climate-related financial disclosures for Group 3 entities apply to financial years starting on or after this date
• 1 July 2027 – New NTA requirements commence