On the pulse
ASIC consults on extending relief for litigation funding arrangements and conditional costs schemes – see media release.
Updated ASIC guidance supports digital asset innovation and boosts investor protection – see media release.
ASIC launches new breach data dashboard – see media release.
APRA revises governance proposals following industry consultation – see media release.
APRA proposes more accessible pathway to IRB accreditation for banks – see media release.
APRA refines proposals to facilitate easier access to alternative reinsurance arrangements – see media release.
APRA to consult on targeted changes to CPS 230 for non-traditional service providers – see media release.
APRA refines proposed changes to the capital framework of longevity products – see media release.
Electronic signing and electronic form deeds: South Australia introduces reform bill – see bill.
Consultation on the payment systems modernisation – see consultation.
ASIC
ASIC consults on extending relief for litigation funding arrangements and conditional costs schemes
On 20 October 2025, ASIC announced that it is inviting feedback on its proposal to extend the operation of two legislative instruments related to litigation funding until 30 March 2030, specifically the:
ASIC Credit (Litigation Funding-Exclusion) Instrument 2020/37, which provides relief from the application of the National Credit Code in the National Consumer Credit Protection Act 2009 (Cth) to litigation funding arrangements and proof of debt arrangements.
ASIC Corporations (Conditional Costs Schemes) Instrument 2020/38, which provides relief from the requirements in Chapter 5C (managed investment schemes) and Chapter 7 (financial services licensing and disclosure) of the Corporations Act 2001 (Cth) to litigation funding arrangements where the members wholly or substantially fund their legal costs under a conditional costs agreement.
The instruments would otherwise expire on 30 January 2026. Submissions for feedback on the proposal close 14 November 2025.
See ASIC consultation.
Updated ASIC guidance supports digital asset innovation and boosts investor protection
On 29 October 2025, ASIC clarified how existing laws apply to digital assets, giving investors improved protections and providing firms with greater certainty to operate and innovate. ASIC also confirmed transitional support ahead of proposed law reforms.
Stablecoins, wrapped tokens, tokenised securities and digital asset wallets are among the digital asset products that ASIC considers to be financial products in its updated guidance. ASIC has reissued Information Sheet 225 Digital assets: Financial products and services to clarify how existing laws apply to digital assets.
ASIC has published a summary of feedback themes from submissions to Consultation Paper 381 Updates to INFO 225: Digital Assets: Financial Products and Services. Feedback from the consultation informed the no-action position and ASIC’s decision to provide the proposed relief and include additional examples in the guidance.
ASIC also released a consultation: Proposed relief for certain stablecoins and wrapped tokens, and extension of omnibus accounts for digital asset custody, inviting feedback on its proposals by 12 November 2025.
See ASIC media release.
ASIC launches new breach data dashboard
On 31 October 2025, ASIC announced that Australians can now access data about reported breaches of the law by Australian financial services licensees and credit licensees through a new ASIC dashboard.
The reportable situations dashboard, which contains information about licensees’ self-reported breaches, aims to improve customer outcomes and uplift licensees’ compliance and reporting practices.
APRA
APRA revises governance proposals following industry consultation
On 24 October 2025, APRA provided an update on its consultation to modernise the prudential framework on governance for banks, insurers and superannuation trustees.
In March, APRA proposed eight measures to update its cross-industry prudential standards and guidance on governance for the first time in more than a decade.
After the three-month consultation period, having carefully considered this feedback, APRA has written to industry advising it will modify three of its original proposals to ensure they do not impose undue regulatory constraint on boards:
Instead of a tenure limit for non-executive directors of 10 years with the possibility of a two-year extension, APRA now proposes a hard tenure limit of 12 years with short extensions in limited circumstances.
A proposal for banks and insurers to have at least two independent directors (including the chair) not on other group boards will not proceed as originally proposed.
A proposal to require significant financial institutions to engage early with APRA on responsible person appointments and succession planning will also not proceed.
APRA will also clarify or adjust proposals relating to individual director skills, perceived conflicts of interest, and publication of registers of relevant interests and duties.
The Australian Institute of Company Directors has welcomed APRA’s updated governance proposals.
See APRA media release.
APRA proposes more accessible pathway to IRB accreditation for banks
On 23 October 2025, APRA released a consultation paper, outlining proposals to introduce a new, more flexible pathway to internal ratings-based (IRB) accreditation. In combination, APRA considers the proposals will reduce some barriers to IRB accreditation for medium-sized authorised deposit-taking institution maintaining the ultimate integrity of the IRB approach.
The IRB method is one of two approaches banks can use to calculate risk-weighted assets, which determines the amount of regulatory capital they need to hold for credit risk. The IRB approach can provide a small financial benefit to banks by marginally reducing their capital requirements. While most banks use the standardised approach, APRA has approved six of the largest banks to use the IRB approach.
Submissions for feedback on this consultation paper close 19 December 2025.
See APRA media release.
APRA refines proposals to facilitate easier access to alternative reinsurance arrangements
On 22 October 2025, APRA released a response paper outlining refinements to its proposed updates to the general insurance reinsurance framework. The changes aim to facilitate easier access to different forms of reinsurance, including alternative arrangements like insurance-linked securities, while continuing to safeguard policyholder interests.
The paper addresses industry feedback and outlines APRA’s revised approach, building on proposals from a consultation that commenced in November 2024.
Submissions for feedback on the draft prudential standards, prudential guidance and reporting standards close 30 January 2026.
See APRA media release.
APRA to consult on targeted changes to CPS 230 for non-traditional service providers
On 31 October 2025, APRA announced that it will consult on targeted amendments to CPS 230 Operational Risk Management by the end of 2025. This follows industry feedback highlighting challenges when applying the new standard’s contractual obligations to arrangements with non-traditional service providers (NTSPs).
NTSPs are providers that are typically market-mandated, such as stock exchanges, payment schemes or clearing and settlement facilities. Arrangements with these providers often lack formal contracts or rely on standardised, non-negotiable terms.
APRA recognises initial difficulties faced by regulated entities in implementing the new standard and appreciates the industry’s effort to identify pragmatic solutions. The proposed amendments will clarify APRA’s expectations for arrangements with NTSPs, particularly around contract uplift and service level monitoring.
APRA refines proposed changes to the capital framework of longevity products
On 29 October 2025, APRA announced that it has commenced a second round of consultation on modifications to its capital framework for longevity products, including annuities. The changes are designed to create an environment that supports the development and availability of longevity products for Australian retirees, while safeguarding policyholder interests.
See APRA consultation paper.
Legislation and proposed legislation
Electronic signing and electronic form deeds: South Australia introduces reform bill
On 15 October 2025, the Statutes Amendment (Planning, Infrastructure and Other Matters) Bill 2025 (SA) was introduced, proposing amendments to a number of pieces of legislation, including the following:
The Land and Business (Sale and Conveyancing) Act 1994 (SA), to permit regulations to be made to exempt other contracts from section 6 (abolition of instalment purchase or rental purchase arrangements) of that Act.
The Law of Property Act 1936 (SA), to permit deeds:
To be executed on behalf of a party to the deed by a person with express or implied authority or, where the party is a natural person, by a person at the direction and in the presence of the party.
To be in electronic form and executed by electronic means.
The Real Property Act 1886 (SA), to:
Permit execution in electronic form.
Permit a caveat to provide an address anywhere within Australia for service of notices.
For the purposes of sections 143 and 150 of that Act, provide that certification by the mortgagee under section 273(1) of that Act will be taken to be execution of the relevant discharge of mortgage or transfer of mortgage by the mortgagee.
Permit electronic service of notices to a person in a manner designated or agreed to by the person.
These amendments will commence on proclamation.
Consultation on payment systems modernisation
On 29 October 2025, the government opened a consultation on the Payment Systems Legislation Amendment (2025 Measures No. 1) Regulations 2025 and Explanatory Statement.
They support the Treasury Laws Amendment (Payments System Modernisation) Act 2025, which recently passed parliament.
The draft Regulations amend the:
Payments Systems (Regulation) Regulations 2006
Australian Securities and Investments Commission Regulations 2001
Corporations Regulations 2001.
Submissions for feedback close 11 November 2025.
G+T articles
G+T Insight – The Competitive Edge Podcast | Law Podcast – discusses no-poach and non-compete agreements and the planned changes to stop them – Maya Dodd and Matt Rubinstein (28 October 2025).
G+T Insight – NSW planning law reform – a step closer – provides an overview of NSW Government’s significant changes to the Environmental Planning and Assessment Act 1979 – Ben Fuller, Alexander Kingsbury, Nina Pearse and Sophia Cheng (27 October 2025).
Calendar dates
31 March 2026 – Amended AML/CTF obligations commence for existing reporting entities.
31 March 2026 – Tranche 2 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.
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.