Financial Services and Credit Monthly Update April 2026
CONSUMER PROTECTION
ASIC expands online scam takedowns as AI investment scams proliferate
The Australian Securities and Investments Commission (ASIC) has increased its actions against online investment scams, amid growing use of artificial intelligence (AI) to make scam advertising more convincing. ASIC reported that it coordinated the removal of 11,964 phishing and investment scam websites during 2025, compared with 6,270 in the previous year. This equates to an average of 32 websites a day.
ASIC also removed more than 1,100 online investment scam advertisements from social media platforms in 2025. The regulator warned that scammers are using AI‑generated videos, fake endorsements and targeted advertising, including the use of ‘cloaking’ techniques to evade platform detection. According to the National Anti‑Scam Centre, Australians lost $2.18 billion to scams in 2025, with investment scams accounting for $837.7 million.
COMPETITION
Maximum penalties for competition and consumer law breaches increased
The Treasury Laws Amendment (Doubling Penalties for ACCC Enforcement) Act 2026 (Cth) has commenced, lifting the maximum civil penalty for many contraventions of the Competition and Consumer Act 2010 (Cth) and the Australian Consumer Law. The reform doubles the first limb of the existing penalty framework, increasing the fixed maximum from $50 million to $100 million for bodies corporate.
For each contravention, the maximum penalty is now the greater of: $100 million; three times the value of any benefit reasonably attributable to the conduct; or, where the benefit cannot be determined, 30% of adjusted turnover during the relevant breach period. The increases apply economy‑wide. The higher penalties cover a broad range of conduct, including cartel behaviour, misuse of market power, exclusive dealing, resale price maintenance, unfair contract terms, and false or misleading representations. They also apply to breaches of the new mandatory merger notification and approval regime.
CORPORATE
ASIC expands email lodgement of regulatory forms
ASIC has expanded the range of regulatory forms that can be lodged by email, with around 70% of its paper‑based lodgements now enabled for email submission. From 31 March 2026, a further 30 paper forms became available for lodgement by email, reducing reliance on postal submissions by around 13,000 forms each year. This brings the total number of forms eligible for email lodgement to 88, following earlier form releases in 2025.
The forms span a wide range of regulatory interactions, including company notifications, foreign company updates, auditor appointments and consents, credit licence updates and debenture holder notifications. Some forms relating to foreign companies can now be lodged by email for the first time. Postal lodgement remains available where preferred, but ASIC notes that email lodgement offers a simpler process with faster turnaround times and reduced manual handling.
ASIC updates guidance on financial reporting and audit relief
ASIC has reissuedRegulatory Guide 43 Financial reporting and audit relief (RG 43), updating and consolidating its guidance on relief from financial reporting and audit requirements under the Corporations Act 2001 (Cth) (Corporations Act). The revised guide reflects legislative changes since the guidance was last updated in 2011 and incorporates relevant material previously contained in other ASIC publications. As part of the update, Regulatory Guide 29 Financial reporting by Australian entities in dual listed company arrangements has been withdrawn, with its content absorbed into RG 43.
RG 43 explains how ASIC exercises its powers to grant relief from financial record‑keeping, financial reporting and audit obligations, and outlines the circumstances in which entities may rely on existing class relief or seek individual relief. The guidance applies to a range of entities, including companies, disclosing entities, registered managed investment schemes, corporate collective investment vehicles and registrable superannuation entities, as well as their directors and auditors.
DIGITAL ASSETS
ASIC sets out roadmap for implementing digital assets licensing regime
ASIC has published its roadmap for implementing Australia’s new digital assets regulatory framework, following the passage of the Corporations Amendment (Digital Assets Framework) Act 2026 (Cth). The legislation will commence on 9 April 2027, with an 18‑month transition period. The reforms bring digital asset platforms and tokenised custody platforms within the financial services licensing regime, with ASIC responsible for licensing, supervision and enforcement.
ASIC’s roadmap outlines staged consultation and implementation over the transition period, including stakeholder roundtables, consultation on regulatory guidance and the making of legislative instruments setting operational standards. ASIC intends to consult on asset‑holding standards, transactional and settlement standards, and financial requirements for platform operators. New regulatory guidance is expected to be released during the transition, addressing how the regime operates and which entities are likely to require a licence. Licence applications will open in the final six months of the transition, with full supervision and enforcement commencing from April 2027.
ESG
ASIC and AASB release guidance to support sustainability reporting readiness
ASIC and the Australian Accounting Standards Board have announced a joint initiative to help companies prepare for Australia’s new mandatory sustainability reporting regime. The initiative includes a series of free, in‑person workshops aimed primarily at smaller and mid‑sized companies preparing to begin reporting for financial years starting on or after 1 July 2026.
FINANCIAL ADVICE
ASIC launches retirement planning tools on Moneysmart
ASIC has launched new retirement planning tools and resources on its Moneysmart website, following research indicating widespread concern and low preparedness among Australians approaching retirement. ASIC‑commissioned research found that 48% of Australians aged 50 to 66 are worried they will run out of money in retirement, while only 18% report having a clear retirement plan. Nearly one‑third said they were already behind in preparing for retirement.
In response, ASIC has introduced a new Retirement Hub on Moneysmart, incorporating a Retirement Planner tool that allows users to estimate retirement income from superannuation, the Age Pension and other sources. The tool also enables users to test different scenarios and assess whether they are on track for their preferred retirement outcomes. The Retirement Hub also includes calculators and guidance on superannuation balances, Age Pension eligibility and retirement income options.
ASIC steps up global crackdown on unlawful finfluencers
ASIC has intensified its action against unlawful financial influencers, working with 16 overseas regulators as part of a coordinated global effort to address misleading and unlicensed financial promotion on social media. ASIC has issued warning notices to four finfluencers suspected of providing unlicensed financial advice or making misleading claims, including promises of guaranteed returns. ASIC has also begun reviewing several Australian financial services (AFS) licensees in relation to their supervision of 15 finfluencers operating as authorised representatives under their licences.
The regulator’s surveillance focused on finfluencers promoting products such as shares, exchange‑traded funds and leveraged derivatives to Australian audiences. ASIC noted the growing reliance on social media for financial information, particularly among younger Australians, and reiterated that finfluencers must be licensed or authorised to provide financial product advice. ASIC has indicated it will continue monitoring online financial promotion and take enforcement action where misconduct or inadequate licensee supervision is identified.
FINANCIAL MARKETS
ASIC publishes final report of ASX Inquiry Panel
ASIC has published the final report of the ASX Inquiry Panel following a nine‑month review of governance, capability and risk management across the Australian Securities Exchange (ASX) group. The inquiry was commissioned in June 2025 after persistent operational issues and focused on ASX’s role as operator of critical market infrastructure.
The panel’s key observations were consistent with its interim report, finding that resilience had been compromised, governance arrangements did not sufficiently prioritise market infrastructure, and cultural and capability issues were impeding transformation. The final report also identified weaknesses in ASX’s risk management and compliance practices and raised questions about the execution of ASX’s market supervision responsibilities.
ASIC noted that ASX submitted a commitments plan in February 2026 and that ASIC and the Reserve Bank of Australia (RBA) will jointly oversee its implementation, including planned governance changes, a strategic reset and additional capital requirements.
Consultation on updates to financial market infrastructure reforms guide
ASIC has opened consultation on proposed updates to three regulatory guides as part of implementing the Federal Government’s financial market infrastructure (FMI) reforms. The consultation was announced on 20 April 2026 and follows legislative changes introduced by the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024 (Cth), which commenced in September 2024.
The proposed updates relate to Regulatory Guide 172 on financial markets operators, Regulatory Guide 249 on derivative trade repositories and Regulatory Guide 268 on financial benchmark administrators. The changes are intended to align ASIC’s guidance with the strengthened FMI regulatory framework, including expanded licensing, supervisory and enforcement powers, reallocation of certain powers from the Minister to ASIC, and increased oversight of foreign FMI operators with a significant Australian nexus. Submissions close on 25 May 2026.
FINANCIAL SERVICES
Parliament legislates new AFS licensing exemptions for foreign providers
The Federal Parliament has passed legislation introducing statutory exemptions from the requirement for foreign financial service providers (FFSPs) to hold an AFS licence. The exemptions replace reliance on ASIC’s temporary and transitional relief framework.
The new regime is contained in Schedule 2 of the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Act 2026 (Cth) and introduces three core exemptions: a professional investor exemption, a comparable regulator exemption and a market maker exemption. Together, they form a framework for offshore providers offering certain financial services into Australia. The exemptions are scheduled to commence on 8 April 2027. FFSPs currently relying on existing ASIC relief may continue to do so until 31 March 2027, subject to any extension.
ASIC updates AFS licensing relief for securitisation vehicles
ASIC has remade its licensing relief for securitisation entities, continuing an exemption from the requirement to hold an AFS licence. The new instrument, ASIC Corporations (Securitisation Special Purpose Vehicles) Instrument 2026/175, replaces and continues the relief previously provided under a 2016 instrument. The relief applies to entities carrying on a securitisation business in specified circumstances and exempts them from holding an AFS licence when providing financial services to clients other than retail clients. In connection with the remake, ASIC will also make minor amendments to Regulatory Guide 167 AFS licensing: Discretionary powers to improve consistency and clarity.
FINANCIAL SYSTEM
Government announces coordinated support for households and small businesses
The Federal Government has announced a package of measures, developed with regulators and industry, aimed at supporting households and small businesses facing economic pressures linked to global supply disruptions. The joint announcement was made on 1 April 2026.
Key measures include temporary tax relief administered by the Australian Taxation Office (ATO) for affected businesses, such as more flexible payment plans, remission of interest and penalties, and limits on certain compliance and debt‑collection actions. The ATO will also establish a dedicated channel for accessing this relief.
The Federal Government will also extend the exemption from the small business responsible lending obligations for a further 10 years, with the aim of making it easier and faster for small businesses to access credit. Banks, insurers and other industry participants have committed to providing additional hardship support, including payment deferrals, loan restructures and tailored assistance for affected customers.
INSOLVENCY
ASIC consults on guidance for appointing reviewing liquidators
ASIC has released a draft information sheet and is seeking feedback on its use of the discretionary power to appoint a reviewing liquidator to a company in external administration. The proposed guidance explains who may apply for the appointment, how applications are made, and the factors ASIC considers when deciding whether to exercise the power.
The draft also outlines situations where ASIC is less likely to appoint a reviewing liquidator, the types of matters that may be reviewed, and ASIC’s expectations of external administrators. The consultation relates to ASIC’s discretionary power under the Corporations Act, which has applied since 2017. It follows the establishment, from 1 July 2024, of a new Reviewing Liquidator Panel of registered liquidators eligible for appointment. Submissions on the draft guidance close on 5 May 2026. ASIC expects to finalise and release the information sheet by 30 June 2026.
INSURANCE
Ban on use of adverse genetic test results in life insurance
The Parliament has passed legislation prohibiting life insurers from using adverse genetic testing results to deny or limit life insurance cover. The ban applies to life insurance contract decisions made on or after 8 October 2026. Under the new Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Act 2026 (Cth), insurers are prevented from relying on adverse genetic test results when underwriting life insurance. Individuals may still voluntarily provide genetic test results with written consent, but only where their use would not worsen the terms or availability of cover.
The reforms do not affect insurers’ existing ability to use other underwriting information, such as signs, symptoms or diagnosed medical conditions. The legislation introduces civil penalties and criminal offences for non‑compliance, with enforcement responsibility allocated to ASIC. Disputes may be raised through the Australian Financial Complaints Authority (AFCA), and the regime will be subject to statutory review every five years.
PAYMENTS
ACCC releases guidance on cash acceptance industry codes
The ACCC has released guidance on two new mandatory industry codes that require the acceptance of cash payments at certain supermarket and fuel retail sites. The Cash Acceptance Industry Codes commenced on 1 January 2026 and are prescribed under the Competition and Consumer Act 2010 (Cth). Under the Codes, affected businesses must provide customers with a reasonable opportunity to pay in cash for in‑person transactions of $500 or less, between 7 am and 9 pm. The Codes apply only to specified supermarkets and fuel retailers, with exclusions for some small businesses earning less than $10 million a year and fuel retailers that do not regularly sell unleaded petrol. While the Codes are in force, penalties for non‑compliance will apply from 1 July 2026.
ASIC remakes non‑cash payment facilities relief instrument
ASIC has remade its legislative instrument providing exemptions for certain low‑risk non‑cash payment facilities from aspects of the financial services licensing regime under the Corporations Act. ASIC Corporations (Non‑cash Payment Facilities) Instrument 2026/167 remakes and extends the relief previously available under ASIC Corporations (Non‑cash Payment Facilities) Instrument 2016/211, with the relief continuing until April 2031. The relief includes exemptions from licensing, conduct and disclosure obligations.
The instrument continues relief for a range of non‑cash payment products, including travellers’ cheques, loyalty schemes, road toll facilities, prepaid mobile facilities, some non‑reloadable gift facilities and low‑value non‑cash payment products. ASIC stated that the instrument was operating effectively and efficiently and remains a useful part of the current regulatory framework, pending implementation of broader payments licensing reforms. The instrument also provides that AFS licensees giving advice about, or arranging the use of, payment services do not need a specific authorisation on their licence.
Consultation on regulation of cash distribution services
The Federal Government has released draft legislation proposing a new regulatory framework for Australia’s cash distribution sector. The proposed framework aims to support continued access to cash as usage declines and the sector becomes more concentrated. The Treasury noted that cash remains important for many Australians, particularly in regional communities and during emergencies, with RBA data indicating that around 15% of in‑person payments are still made in cash and around 50% of Australians use cash weekly.
Under the proposal, the ACCC would oversee designated cash distribution services, including through fair, reasonable and transparent standard terms, service‑level standards to support nationwide access, crisis preparedness and resolution powers, and good‑faith negotiation requirements. The consultation closes on 13 May 2026.
Public consultation opens on future of account‑to‑account payments
A public consultation has opened on a draft vision for the future of Australia’s account‑to‑account (A2A) payments system, following the release of a discussion paper by the Account‑to‑Account Payments Roundtable on 30 April 2026. The Roundtable comprises Australian Payments Network, Australian Payments Plus, the RBA and the Treasury. The draft vision forms part of a multi‑stage process to develop a shared long‑term direction for A2A payments and a roadmap of high‑level deliverables and milestones. The paper sets out desired long‑term outcomes for the A2A system, including that it remains safe, reliable, low cost, easy to use and inclusive for consumers, businesses and government. Submissions close on 22 May 2026.
PRIVACY AND DATA
Privacy guidance and privacy collection notice for AML/CTF reporting entities
The Office of the Australian Information Commissioner (OAIC) has released updated guidance on privacy obligations for entities subject to the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (Cth), reflecting major anti-money laundering and counter-terrorism financing (AML/CTF) reforms commencing from 31 March 2026. The updated guidance reflects significant AML/CTF reforms commencing from 31 March 2026 for existing reporting entities and from 1 July 2026 for newly captured “tranche 2” entities, including lawyers, accountants and real estate professionals. It confirms that all reporting entities must comply with the Privacy Act when handling personal information for AML/CTF purposes, including small businesses that would otherwise be exempt. The guidance also clarifies expectations around data minimisation, overseas disclosures, security, breach response planning, and the retention and destruction of identity documents.
The OAIC has also published a new template privacy collection notice for customer due diligence. The new template collection notice is intended to help entities meet notification requirements when collecting personal information, while allowing flexibility to limit disclosures where necessary to avoid tipping off investigations.
eSafety and OAIC formalise cooperation on online privacy and safety
The eSafety Commissioner and the OAIC have entered into a new memorandum of understanding (MOU) to strengthen cooperation on issues where online safety and privacy intersect. The MOU formalises information‑sharing and coordination between the two regulators, building on existing collaboration as regulatory responsibilities increasingly overlap. Areas of focus include age‑assurance requirements under online industry codes and standards, and compliance by age‑restricted platforms with minimum age obligations for social media.
Consultation on reforms to regulatory data standards development
The Treasury has opened consultation on proposed reforms to how regulatory data standards are developed for the Consumer Data Right (CDR) and Digital ID frameworks. The consultation, launched on 30 April 2026, seeks feedback on changes to the role and processes of the Data Standards Body (DSB). The proposals aim to improve the clarity, predictability and implementation of regulatory data standards as both CDR and Digital ID mature.
The consultation focuses on three areas: clarifying the purpose and scope of regulatory data standards within broader policy frameworks; strengthening the standards development process through clearer phases, engagement points and evidence requirements; and improving publication and implementation practices, including more predictable release schedules. For CDR, the reforms include the use of standardised future‑dated obligations to support industry planning. Submissions close on 29 May 2026.
PRUDENTIAL
APRA consults on liquidity treatment of settlement deposits
The Australian Prudential Regulation Authority (APRA) has released a letter and draft frequently asked question (FAQ) clarifying how authorised deposit‑taking institutions (ADIs) subject to the Minimum Liquidity Holdings (MLH) framework should treat deposits placed with settlement service providers for liquidity purposes. The guidance responds to inconsistent industry practice and is intended to align application of Prudential Standard APS 210.
APRA explains that deposits placed for the purpose of facilitating or securing settlement obligations should not be treated as MLH liquid assets where they are encumbered. Consistent with APS 210, only deposits that are free from encumbrance and available for use by the ADI may be included. APRA notes that earlier communications contributed to differing approaches and states that the draft FAQ is intended to supersede all previous guidance on the issue. APRA has invited feedback from MLH ADIs on the draft FAQ, including the impact of the clarification and the proposed implementation timing. The consultation closed on 24 April 2026.
APRA consults on updated reporting standards for life insurers
APRA has released a consultation package proposing amendments to reporting standards for life insurers, as part of the transition of life insurance data collections from Direct to APRA (D2A) to APRA Connect. The proposed changes are intended to update existing reporting standards so they align with APRA’s APRA Connect platform and are consistent with other prudential data collections already migrated to that system. APRA indicated the amendments are largely technical and operational, focusing on the structure and submission of data rather than introducing new prudential requirements. The consultation closes on 3 July 2026.
APRA urges stronger governance of AI‑related risks
APRA has called on banks, insurers and superannuation trustees to significantly lift their approach to managing risks associated with artificial intelligence (AI), warning that current practices are not keeping pace with rapid AI adoption. APRA’s letter to industry outlines findings from a targeted supervisory review conducted across APRA‑regulated industries late last year. APRA found that while use of advanced AI is accelerating (moving from experimentation to embedded and customer‑facing applications) governance arrangements have not matured at the same rate. Boards were observed to have strong interest in AI benefits but, in many cases, limited technical capability to effectively oversee AI‑related risks.
APRA also highlighted emerging vulnerabilities, including concentration risk from reliance on single providers, reduced transparency where AI is embedded in broader platforms, fragmented assurance practices, and heightened cyber and information security risks. APRA is not proposing new requirements at this stage but expects material improvements in how entities manage AI risks under existing prudential standards.
APRA finalises targeted changes to CPS 230
APRA has finalised targeted amendments to Prudential Standard CPS 230 Operational Risk Management (CPS 230), associated prudential guidance in CPG 230, and the Material Service Provider Register template. The amendments will take effect from 1 July 2026. The changes introduce limited exemptions from certain CPS 230 contractual requirements for material arrangements with specific categories of non‑traditional service providers, such as central banks and clearing and settlement facilities, where contractual compliance is not practicable.
SUPERANNUATION
Consultation on reforms to strengthen superannuation consumer protections
The Federal Government has released three consultation papers proposing cross‑sector reforms to strengthen consumer protection in the superannuation system and improve the sustainability of the Compensation Scheme of Last Resort (CSLR). The consultations were announced on 8 April 2026. The proposals follow the collapse of the Shield Mater Fund (Shield) and First Guardian Master Fund (First Guardian), which affected more than 11,000 consumers and over $1 billion in superannuation savings. The consultation papers cover reforms to superannuation member protections, regulation of lead generation and sales practices, and funding arrangements for the CSLR.
Options under consideration include strengthening trustee governance standards, introducing a safer framework for superannuation switching, restricting advice‑fee deductions from superannuation, and requiring platform trustees to compensate members for certain investment failures using trustee capital. Separate proposals address tighter regulation of lead generators and changes to improve the predictability and structure of CSLR funding. Submissions on the consultation papers close on 22 May 2026.
AML/CTF
AUSTRAC strengthens crypto oversight through public register reforms
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has implemented changes to Australia’s AML/CTF framework aimed at reducing the misuse of crypto and other virtual assets for money laundering. The reforms expand regulatory oversight of crypto‑related businesses, a sector AUSTRAC continues to identify as high risk for financial crime. As part of the changes, digital currency exchange providers have been renamed “virtual asset service providers” (VASPs), aligning Australia’s regime with international terminology and reflecting the broader range of crypto services now captured under the AML/CTF laws.
AUSTRAC has also launched a searchable public register of VASPs to improve transparency and deter misuse of inactive or shell entities. Ahead of publication of the register, AUSTRAC conducted a targeted review of crypto registrations, contacting 128 inactive entities. This resulted in 62 businesses exiting the sector through deregistration or voluntary withdrawal. Under the updated framework, businesses providing virtual asset services must be registered with AUSTRAC and comply with AML/CTF obligations.
Banks intensify AML measures targeting illicit tobacco profits
Australian banks have strengthened their AML/CTF controls to disrupt the financial flows supporting the illicit tobacco trade, following engagement with AUSTRAC and the Illicit Tobacco and E‑Cigarette Commissioner. In late 2025, banks were warned about elevated risks associated with tobacco retailers using cash, private ATMs and EFTPOS terminals to move and disguise criminal proceeds.
Since then, banks have increased transaction monitoring, reporting and customer reviews under existing AML/CTF obligations. AUSTRAC introduced a dedicated reference code for suspicious matter reports relating to illicit tobacco, resulting in more than 300 reports and dozens of referrals to partner agencies. Some institutions have exited high‑risk customers where risks could not be effectively managed, while others applied enhanced controls. Around 90% of banks and authorised deposit‑taking institutions responded to AUSTRAC’s request, with over 1,000 customer relationships exited or flagged for exit following reviews.
AUSTRAC flags low suspicious matter reporting in wealth management sector
AUSTRAC has raised concerns about very low levels of suspicious matter reporting across the wealth management sector, warning that significant money‑laundering risks may be going undetected. The wealth management sector includes trustees of managed investment schemes and financial advisers. Following supervisory work, AUSTRAC found that the vast majority of wealth management businesses submitted no suspicious matter reports during 2025, despite operating in areas exposed to financial crime risks. AUSTRAC observed that a small number of entities accounted for most reports lodged across the sector, while many firms reported having no high‑risk customers. AUSTRAC indicated this was inconsistent with the nature of the sector, which can involve complex investment structures, cyber‑enabled fraud and the use of intermediaries.
AUSTRAC targets AML weaknesses in foreign‑owned banks
AUSTRAC has completed two supervisory campaigns examining financial crime risks in foreign‑owned banks operating in Australia, identifying weaknesses in controls and reporting that could be exploited by criminals. The campaigns focused on low suspicious matter reporting by foreign bank branches and money‑mule risks in foreign bank subsidiaries.
AUSTRAC found that some foreign bank branches regarded their operations as low risk despite exposure to higher‑risk customers and cross‑border transactions. In the first campaign, AUSTRAC noted that limited suspicious matter reporting created blind spots, particularly given the significant volumes of funds moved into and out of Australia by these entities. The second campaign examined foreign bank subsidiaries offering retail banking services. AUSTRAC identified high exposure to money‑mule activity, with risks arising at customer onboarding and through ongoing account activity, including cross‑border transfers.
DISPUTES AND ENFORCEMENT
ASIC bans advisers over Shield and First Guardian investments
ASIC has banned Melbourne-based financial adviser David Lofthouse from providing financial services for three years, effective from 30 March 2026. The ban follows findings that, while authorised by MWL Financial Services Pty Ltd, Mr Lofthouse gave inappropriate advice to certain clients that was not in their best interests. ASIC found that Mr Lofthouse advised six clients to invest at least 75% of their superannuation savings into high-risk options within Shield. ASIC described Shield as a new product with no meaningful track record, not designed to be a complete investment strategy, and affected by governance conflicts.
ASIC has also banned former financial adviser Shane Monte Silva from providing financial services for five years after finding he failed to act in certain clients’ best interests when recommending superannuation switches into high‑risk investments. The ban took effect from 11 December 2025.
Between July and August 2023, while authorised by Financial Services Group Australia Pty Ltd (now in liquidation), Mr Monte Silva advised five clients to roll over their superannuation savings and invest in managed investment schemes including Shield and First Guardian. ASIC found the advice involved misleading statements of advice, recommended placing all retirement savings into high‑risk products, and was given in circumstances involving unlicensed third‑party referrers and minimal adviser engagement. Mr Monte Silva has sought review of ASIC’s decision in the Administrative Review Tribunal.
AUSTRAC orders independent audit of payment platform MHITS
AUSTRAC has directed payment platform MHITS Limited (MHITS) to appoint an external auditor to assess its compliance with AML/CTF obligations. The direction follows supervisory work arising from AUSTRAC’s 2025 payment platforms campaign. The audit requirement builds on earlier regulatory action against other providers. AUSTRAC said its supervisory work identified serious compliance deficiencies across parts of the sector, particularly in identifying and managing higher‑risk cross‑border payments and meeting suspicious matter reporting obligations. AUSTRAC expressed concern that MHITS’ transaction monitoring arrangements were not calibrated to the full range of risks associated with its business model, which facilitates payments across multiple jurisdictions. The scope of the audit will be set by AUSTRAC and conducted at MHITS’ expense, with findings to be provided within 180 days of the auditor’s appointment.
Federal Court imposes $7 million penalties over unlicensed credit activity
The Federal Court has ordered Cigno Australia Pty Ltd (Cigno) and BSF Solutions Pty Ltd (BFS), along with their respective directors Mark Swanepoel and Brenton Harrison, to pay a combined $7 million in penalties for breaches of the National Consumer Credit Protection Act 2009 (Cth) (NCCP Act). The Court found that Cigno and BSF engaged in credit activity without holding an Australian credit licence and charged consumers prohibited fees through their “No Upfront Charge Loan Model”. Cigno and BSF were each fined $3 million, while Mr Swanepoel and Mr Harrison were each ordered to pay $500,000. The penalty orders follow earlier findings in May 2024 that the companies had breached the NCCP Act, and that their directors were involved in the contraventions. Appeals to the Full Federal Court and an application for special leave to appeal to the High Court were unsuccessful.
Federal Court dismisses ASIC’s continuous disclosure case against Nuix
The Federal Court has dismissed ASIC’s proceedings against Nuix Limited (Nuix), finding that the company did not breach its continuous disclosure obligations or mislead investors when it reaffirmed its financial forecasts in early 2021, shortly after its December 2020 initial public offering. The decision was handed down on 23 April 2026. ASIC had alleged that Nuix failed to disclose information that would have had a material effect on the price or value of its securities and that statements made to the market were misleading. The Court rejected those claims and also dismissed ASIC’s case against members of the Nuix board, who were accused of failing to take reasonable steps to prevent alleged disclosure breaches.
Federal Court orders Money3 to pay $1.55 million for responsible lending breaches
The Federal Court has ordered Money3 Loans Pty Ltd (Money3) to pay penalties totalling $1.55 million for breaching responsible lending obligations in connection with car finance provided to vulnerable consumers. The Court found that, for five loans entered into between May 2019 and February 2021, Money3 failed to make reasonable inquiries into borrowers’ living expenses or to properly verify those expenses using bank transaction data already in its possession. In one case, the Court also found that Money3 did not make reasonable inquiries into the borrower’s requirements and objectives. The Court described the failures as serious and as undermining the purpose of the responsible lending regime.
OAIC finds RentTech platform collected excessive renter data
The Privacy Commissioner has determined that the 2Apply rental application platform, operated by IRE Pty Ltd trading as InspectRealEstate (IRE), collected excessive personal information and did so by unfair means. The determination, published on 22 April 2026, concludes a year‑long investigation by the OAIC. The Commissioner found that 2Apply collected information that was not reasonably necessary for its functions, including applicants’ gender, student status, citizenship and visa details, and aspects of prior living history.
The decision also found that information was collected by unfair means in breach of the Australian Privacy Principles, citing the limited choices available to renters in a tight housing market and a significant power imbalance between applicants and landlords or agents. In a first for the OAIC, the determination examined the design of the online application form, finding that features such as “confirmshaming”, biased framing and bundled consent pressured users into providing information. IRE has agreed, without admissions, to change its practices.