On the pulse

ASIC

Full Federal Court finds Block Earner did not engage in unlicensed conduct

The Federal Court found that Block Earner did not require a financial services licence to offer its digital asset-related Earner product and ordered that ASIC pay costs. See ASIC media release.

ASIC permanently bans former financial adviser Neville Allan Kendrick

ASIC found that Mr Kendrick provided financial services when he was not licensed or authorised, made materially misleading statements to induce investors and acted dishonestly by making false statements. See ASIC media release.

ASIC market integrity update – Issue 16

  1. Update on ASIC’s regulatory roadmap for public and private capital markets

    In February 2025, ASIC released a discussion paper canvassing issues key to the ongoing and future success of Australia’s capital markets. The submission period for feedback in response to the paper’s key questions closed on 28 April 2025 and ASIC is reviewing the feedback received.

    ASIC is currently conducting its thematic surveillance of private capital funds and expects to release an update to the paper and surveillance work later in 2025. This will outline its responses to key feedback and ideas, as well as how it will use these inputs to inform ASIC’s priorities and future work program.

  2. Recent ASIC enforcement action

    ASIC’s 2025 enforcement priorities send a clear compliance message to the entities ASIC regulates. Governance and directors’ duties failures remain one of ASIC’s enduring priorities.

See ASIC market integrity update.

APRA

Consequential reporting changes to ARS 110.0 – Capital Adequacy

APRA has released a response following consultation on proposed updates to Reporting Standard ARS 110.0 Capital Adequacy (ARS 110) resulting from targeted liquidity changes and Interest Rate Risk in the Banking Book (IRRBB) reporting in December 2024. APRA received no submissions in response to the consultation. In the absence of feedback, APRA intends to proceed with the proposed changes:

  • Collect data on ‘unrealised losses for securities in the liquid asset portfolio that are not measured at fair value’.

  • Validate the risk-weighted assets equivalent of the IRRBB capital requirement in ARS 110 against the IRRBB Capital Charge value submitted in Reporting Standard ARS 117.1 Interest Rate Risk in the Banking Book

  • Calculating Item 3.1 of Section B in ARS 110 for reporting periods ending on or after 31 March 2026.

See APRA response and Finalised Reporting Standard ARS 110.0 Capital Adequacy.

APRA sector statistics

APRA releases Monthly Authorised Deposit-taking Institution Statistics for March 2025 – see statistics.

AUSTRAC

‘Use it or lose it’ blitz targets digital currency exchanges

AUSTRAC is encouraging inactive digital currency exchange (DCE) businesses to voluntarily withdraw their AUSTRAC registration or risk having it cancelled. DCEs must be registered with AUSTRAC before they can offer a service to exchange cash for cryptocurrency or vice versa. This includes cryptocurrency ATM providers. 

AUSTRAC is concerned that a significant proportion of registered DCEs are inactive, noting that businesses offering cryptocurrency exchange services are operating in a high-risk sector and that inactive businesses are vulnerable to being bought and co-opted by criminals.

See AUSTRAC media release.

G+T articles

G+T Insight - Federal Court clarifies crypto regulation: key takeaways from ASIC v Web3 Ventures Pty Ltd – discusses a landmark Federal Court decision in ASIC v Web3 Ventures Pty Ltd, where the court ruled that a crypto lending product was not a financial product under Australian law, thereby providing greater clarity on how crypto-related offerings are regulated under the Corporations Act – Daniel MacPherson and Peter Reeves (30 April 2025).

G+T Insight - ASIC consultation paper on RS and IDR data publication – discusses ASIC's plan to publish firm-level reportable situations and internal dispute resolution data in 2025, aiming to enhance transparency and accountability in the financial sector and invites feedback on the proposed data elements to be published – Silvana Wood and Rachel Walker (23 April 2025).

G+T Insight - Overview of the annual Prospectors and Developers Association of Canada Convention – discusses how the convention serves as a barometer for the mining sector’s health and future direction – Simon Rear and Justin Mannolini (22 April 2025).

G+T Insight - New Zealand's Minerals Strategy: a fresh frontier for Australian miners? – discusses New Zealand's newly released Minerals Strategy, highlighting opportunities for Australian miners to capitalise on the country's shift toward expanding its mining sector, including critical minerals development, streamlined regulations and environmental considerations – Justin Mannolini (22 April 2025).

G+T Insight - Outcome of the Review of the Modern Slavery Act – discusses the Australian government's response to the review of the Modern Slavery Act, highlighting proposed changes to improve transparency, due diligence and penalties for non-compliance, with implications for businesses, particularly in the metals and mining sector, to address modern slavery risks in their supply chains – Ilona Millar and Lily Morton (22 April 2025).

G+T Insight - The Australian mining industry in 2025: adapting to a shifting landscape – discusses the challenges and opportunities facing the Australian mining industry in 2025, including geopolitical uncertainty, financial volatility and evolving ESG demands, emphasising the need for strategic adaptability and innovation to thrive in a shifting landscape – Justin Mannolini (22 April 2025).

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