Financial Services and Credit Monthly Update August 2026
CONSUMER PROTECTION
ASIC warns of growing use of AI-powered investment scams
The Australian Securities and Investments Commission (ASIC) has warned that scammers are increasingly using generative artificial intelligence (AI) to create sophisticated investment scams, including deepfake videos, fake celebrity endorsements, fabricated news articles and spoof websites designed to appear legitimate. ASIC said consumers should not rely solely on online searches to verify investment opportunities, as scammers are increasingly manipulating the very sources people use to assess whether an investment is genuine.
ASIC reported that it removed more than 19,400 online scams during 2025–26, including fake investment websites, phishing scams, social media advertisements and cryptocurrency investment scams. It urged consumers to independently verify AFS licence details through ASIC’s registers and to exercise caution where investment opportunities cannot be verified through trusted sources.
CORPORATE
ASIC consults on extension of financial reporting relief for wholly-owned companies
ASIC has sought feedback on a proposal to remake relief that exempts certain wholly-owned companies from financial reporting obligations under Chapter 2M of the Corporations Act 2001 (Cth) (Corporations Act). The existing relief, contained in ASIC Corporations (Wholly-owned Companies) Instrument 2016/785, is due to expire on 1 October 2026. ASIC has proposed extending the relief for a further five years while the Federal Government progresses broader law reform on simplified financial reporting for group entities as part of its regulatory reform agenda.
Under the proposal, the current relief would continue to apply for financial years ending before 1 January 2027, with a replacement instrument applying thereafter to ensure eligible entities can continue to access reporting relief under existing arrangements. ASIC has also proposed a number of minor technical amendments to the instrument and related documents, including Pro Forma 24 Deed of cross guarantee. Consultation closed on 28 August 2026.
ASIC launches small business strategy and director support hub
ASIC has launched a refreshed Small Business Strategy and a new Small Business Director Essentials online hub aimed at helping small businesses and directors better understand their obligations, engage more easily with the regulator and access practical guidance throughout the lifecycle of a business. The strategy is built around four key themes: educate, simplify, engage and collaborate, and protect and enforce. ASIC said it will improve the accessibility of its guidance, digital services and registers, while continuing to take targeted enforcement action against misconduct that harms small businesses, creditors and consumers.
A key initiative under the strategy is the Small Business Director Essentials hub, which brings together guidance, tools and learning modules covering major stages of the director journey, from establishing and operating a company through to managing financial difficulty, restructuring or closing a business. The resources were informed by ASIC research which found that many small business directors face challenges in understanding and meeting their obligations due to time pressures, regulatory complexity and the cost of obtaining professional advice.
ASIC encourages small business directors to act early when facing financial difficulty
ASIC Commissioner Kate O’Rourke has urged small business directors to recognise the warning signs of financial difficulty and seek professional advice before options narrow. Writing in ARITA News, Commissioner O’Rourke noted that common warning signs include cash flow pressures, overdue tax and superannuation liabilities, unpaid suppliers and increasing reliance on personal funds. ASIC emphasised that delays can reduce restructuring options, increase losses to creditors and employees, and expose directors to greater personal risk.
ASIC highlighted Regulatory Guide 217, which expects directors to actively monitor solvency, investigate financial difficulties, seek professional advice where appropriate and act in a timely manner. ASIC is also developing practical guidance, roadmaps and online learning resources to help small business directors identify financial distress and understand their obligations. The regulator said early engagement with advisers can improve the prospects of restructuring and reduce harm to creditors, employees and directors if a business cannot continue.
Treasury reviews conditions attached to foreign investment approvals
The Treasury is seeking feedback as part of a review of conditions imposed on existing foreign investment approvals. The review aims to ensure these conditions remain effective in mitigating risks to Australia’s national interest and national security, with particular focus on conditions that may be ineffective, duplicate other regulatory requirements or require modernisation. The review forms part of the Government’s 2026–27 Budget foreign investment reform package and will consider whether existing approval conditions remain necessary, effective and fit for purpose. Submissions close on 15 September 2026.
ASIC urges companies to prepare for director ID reporting changes
ASIC has reminded companies and directors to prepare for new director identification number (director ID) reporting requirements commencing on 1 July 2027 under the Treasury Laws Amendment (Business Registries Stabilisation and Uplift) Act 2026 (Cth). From that date, companies will be required to provide director IDs to ASIC through existing company reporting processes, including annual reviews and notifications of changes to director details. ASIC has encouraged companies and directors to check that company and director information is current and accurate before the new requirements commence. This includes confirming that all current directors are correctly recorded, updating any incorrect names, addresses or contact details, and ensuring ASIC records align with director ID information held by the Australian Business Registry Services. ASIC will issue further guidance and engage with stakeholders ahead of the 1 July 2027 commencement date.
ASIC withdraws relief for uncontactable members
ASIC has withdrawnASIC Corporations (Uncontactable Members) Instrument 2016/187 ahead of its scheduled expiry on 1 October 2026. ASIC noted that amendments to the Corporations Act now provide substantially similar relief, meaning the instrument is no longer being used in practice. The instrument previously relieved companies, registered schemes, disclosing entities and notified foreign passport funds from the obligation to provide annual reports to uncontactable members. ASIC stated that sections 110JA and 110F(4A) of the Corporations Act now address these situations. Entities that are not covered by the statutory relief may still apply to ASIC for individual relief.
ESG
Consultation on streamlining climate-related disclosure requirements
The Treasury has commenced consultation on proposed reforms to improve the efficiency of Australia’s climate-related financial disclosure regime. The proposals include changes to assurance requirements to reduce compliance costs, clearer guidance on key terms and concepts, and measures to reduce the burden of information requests across supply chains. The Federal Government said the objective is to lower compliance costs while maintaining the quality, credibility and international comparability of climate-related disclosures. Submissions close on 2 October 2026.
Climate-related transition planning guidance
The Federal Government has published voluntary climate-related transition planning guidance to assist organisations in planning for the risks and opportunities arising from the transition to a net zero economy and the increasing impacts of climate change. The guidance provides practical advice, examples and references to good-practice resources, with a particular focus on the Australian context. The guidance is intended to support organisations in developing and implementing transition plans, recognising that approaches will vary depending on factors such as industry sector, business size, value chains and exposure to climate-related risks and opportunities.
ASIC launches sustainability reporting video series
ASIC has released a series of eight sustainability reporting videos to help companies understand the foundational concepts underpinning Australia’s new sustainability reporting requirements. The videos cover topics including climate-related risks and opportunities, emissions accounting, scenario analysis, governance and risk management, and climate-related disclosure requirements under the Corporations Act.
FINANCIAL MARKETS
ASIC proposes greater flexibility for pre-IPO communications
ASIC has released proposals to modernise Australia’s pre-initial public offering (IPO) advertising and publicity regime, allowing companies greater flexibility to communicate with investors before lodging a prospectus. The proposals would extend existing relief from Corporations Act restrictions and are intended to better align Australia’s framework with comparable international markets and other domestic fundraising regimes.
The proposed reforms would allow issuers to engage with investors in a controlled and accountable manner before a prospectus is lodged, helping companies gauge market interest, improve information quality and make timely corrections or clarifications. ASIC said the changes would maintain investor protections by reinforcing the prospectus as the primary disclosure document for investment decisions while supporting more efficient capital raising and promoting Australia’s public markets as an attractive destination for new listings. Consultation closes on 11 September 2026.
FINANCIAL PRODUCTS
ASIC warns investors about risks of complex products offered through online brokers
ASIC has warned that some online brokers are promoting complex and high-risk investment products to retail investors without adequately explaining the risks or implementing appropriate onboarding processes. Following a review of nine online trading platforms offering products including short-dated exchange traded options (ETOs), futures and fractional shares, ASIC identified deficiencies in target market determinations, weaknesses in client onboarding processes and disclosures that did not clearly explain product risks and costs.
ASIC expressed concern that incentives such as fee-free trading, cash rewards and loyalty points may encourage retail investors to trade products that are unsuitable for their circumstances. The regulator noted that leveraged products such as short-dated ETOs and futures can result in significant losses within a short period, while fractional share arrangements can involve ownership structures that affect investor rights and protections. Following ASIC’s intervention, several providers have improved their compliance practices, including two that have paused onboarding options clients while remediation work is undertaken. ASIC has also published new educational resources through Moneysmart and indicated it is considering further regulatory or enforcement action in relation to some entities reviewed.
FINANCIAL SERVICES
Independent review recommends updates to customer-owned banking code
An independent review of the Customer Owned Banking Code of Practice (COBCOP) has been completed following a public consultation process and the release of an interim report on proposed reforms. The review examined a range of consumer protection issues, including protections against financial abuse, support for customers experiencing vulnerability and the effectiveness of hardship assistance arrangements.
The final report contains recommendations aimed at clarifying the standards customers can expect from customer-owned banks while supporting the continued evolution of the code. The Customer Owned Banking Association has indicated it is considering the recommendations and will undertake further consultation before issuing a formal response. The COBCOP applies to Australia’s mutual banks and credit unions and is subject to independent review at least every five years.
ASIC proposes extending eight financial services, credit and markets instruments
ASIC is consulting on a proposal to extend the operation of eight legislative instruments across the financial services, credit and markets sectors that are due to expire in 2027. ASIC has assessed the instruments as operating effectively and efficiently and considers them to remain a necessary and useful part of the legislative framework. No substantive amendments are proposed, with ASIC seeking only to extend each instrument’s self-repeal date.
The instruments cover a range of matters, including futures market trading rules, authorised representative notifications, family violence protections in disclosure and transaction confirmation requirements, financial requirements for retail over the counter derivative issuers, superannuation disclosure arrangements, financial services guides and employee share schemes. Submissions on the proposal closes on 8 September 2026.
ASIC warns financial services firms about ASIC impersonation phishing scams
ASIC has warned financial services businesses to be alert to a spear phishing campaign in which scammers impersonate ASIC staff and target personnel at market operators and financial services firms. ASIC said scammers are using email addresses that appear genuine through spoofing techniques and may seek to build trust by initiating apparently routine conversations before requesting information or directing recipients to malicious links. ASIC emphasised that it will only send communications from email addresses ending in@asic.gov.au.
ASIC has urged recipients to verify the sender’s email address, be cautious of messages creating urgency or requesting sensitive information, and avoid clicking links or opening attachments unless the communication has been independently verified. The regulator noted that advances in AI and other technologies are making spear phishing scams increasingly convincing and encouraged firms to report suspected scams to both ASIC and Scamwatch.
FINANCIAL SYSTEM
Treasury releases 2026–27 Corporate Plan
The Treasury has released its 2026–27 Corporate Plan, setting out its priorities for the next four years and its work program for the coming year. The plan identifies three strategic areas of focus: supporting a strong and sustainable economic and fiscal environment, delivering effective government policies and regulation, and strengthening the Treasury’s organisational capability. The Treasury highlights a range of challenges shaping its agenda, including geopolitical instability, inflationary pressures, housing affordability, productivity growth, climate and digital transitions, and the economic impacts of emerging technologies such as AI.
Key priorities include advising on productivity, competition and regulatory reform, housing supply and affordability, tax and retirement income systems, financial system stability, foreign investment and national economic security. The Treasury will also support delivery of the Federal Government’s housing agenda, prepare the 2027–28 Budget, the 2026 Intergenerational Report and the 2026 Measuring What Matters Statement, while progressing reforms aimed at strengthening economic resilience, improving living standards and supporting long-term fiscal sustainability.
ASIC releases Corporate Plan for 2026–27
ASIC has released its 2026–27 Corporate Plan, outlining a strategy to be easier for compliant businesses to deal with while taking stronger action against misconduct. The plan focuses on protecting consumers and small businesses, supporting responsible innovation, reducing unnecessary regulatory burden and strengthening confidence in Australia’s financial system. ASIC identified scams, debt collection, insurance claims intermediaries in disaster-affected communities, buy now pay later products and superannuation advice fee deductions as priority consumer protection areas.
ASIC also announced an increased focus on AI, including its use by banks in customer-facing services, AI-driven scams and misinformation, and risks to market integrity. The regulator said it will continue strengthening supervision of managed investment schemes and public and private markets, while seeking to reduce compliance burdens through simpler guidance, improved digital services, more efficient licensing processes and greater coordination with other regulators.
APRA and ASIC call for action on frontier AI risks
The Australian Prudential Regulation Authority (APRA) and ASIC have urged financial sector participants to move beyond awareness of frontier AI risks and take concrete steps to strengthen resilience. The regulators warned that frontier AI is increasing the speed, scale and sophistication of cyber threats while also amplifying broader technology and operational risks. The warning follows a series of industry roundtables involving more than 600 participants from across the financial system and supported by other government agencies, including the Treasury, the Reserve Bank of Australia, the Australian Competition and Consumer Commission (ACCC) and the Australian Signals Directorate.
Key themes emerging from the roundtables included the importance of strong cyber security fundamentals, board-level planning for AI-related incidents, managing third-party concentration risk, and improving sector-wide collaboration and information sharing. APRA and ASIC also highlighted growing interest in the use of defensive AI tools to support cyber resilience but stressed the need for organisations to have tested response and recovery plans in place before a crisis occurs.
INSOLVENCY
Government responds to parliamentary inquiry into corporate insolvency
The Federal Government has released its response to the Parliamentary Joint Committee on Corporations and Financial Services’ report Corporate insolvency in Australia. The response addresses recommendations arising from the committee’s review of Australia’s corporate insolvency framework and was tabled on 6 August 2026. In its response, the Government supported one recommendation, supported 25 recommendations in principle and noted two recommendations. The response sets out the Government’s position on the committee’s proposed reforms and next steps for consideration of issues affecting Australia’s corporate insolvency system.
INSURANCE
ACCC proposes not to authorise insurance policy term standardisation
The ACCC has issued a draft determination proposing not to authorise the Insurance Council of Australia and its home insurer members to introduce standard definitions for the policy terms “taking reasonable steps to maintain” and “wear and tear”, together with related consumer education campaigns. The proposal would have applied to both current and future insurer members.
The ACCC concluded that the proposed definitions contain a number of deficiencies and that there is uncertainty about the likely benefits of the associated education campaigns. It also considers that standardising these policy terms could reduce competition between insurers and limit opportunities for insurers to differentiate their products and offerings. As a result, the ACCC is not satisfied that any public benefits would outweigh the potential public detriment. Consultation on the draft determination closed on 20 August 2026.
ASIC calls on insurers to improve transparency around premium increases
ASIC has found that car insurers are failing to adequately explain the reasons for significant premium increases, leaving many consumers unable to understand or challenge rising insurance costs. In Report 838 Road testing transparency in car insurance premiums, ASIC noted that motor vehicle insurance premiums increased by 8% in the 12 months to July 2025 and by more than 42% between 2019 and 2024. ASIC’s review of eight insurance brands found that none clearly explained the key factors affecting premium calculations or why premiums had changed from the previous year.
The review also found that insurers often failed to clearly disclose the additional cost of paying premiums by instalments, despite some consumers being able to save up to 20% by paying annually. ASIC’s consumer research showed that while most policyholders renewed with their existing insurer, many who contacted their insurer before renewal were able to obtain a lower premium without reducing cover. ASIC has called on insurers to improve quote and renewal documents by clearly explaining premium calculations, setting out the cost of payment options and highlighting key policy changes.
ASIC warns insurers over home insurance cash settlements
ASIC has warned that home insurers may be leaving consumers exposed to unexpected repair costs through their use of cash settlements in home insurance claims. Following a review covering around 65% of the home insurance market, ASIC found that full or partial cash settlements were used in at least 63% of claims reviewed, with more than half of settlement offers based on a single quote, often from an insurer’s preferred supplier. ASIC expressed concern that these amounts may not reflect the actual cost consumers face when arranging repairs themselves.
ASIC also identified weaknesses in insurers’ treatment of vulnerable customers and found that settlement amounts could increase significantly after a complaint was lodged, raising concerns about the fairness of some initial offers. ASIC has called on insurers to provide clearer information about cash settlements, ensure settlement amounts reflect realistic repair costs, and better support consumers when deciding whether to accept a cash payout rather than insurer-managed repairs.
PAYMENTS
Parliament passes cash distribution services framework
The Federal Parliament has passed the Cash Distribution Framework Act 2026 (Cth), establishing a regulatory framework for cash distribution services, aimed at maintaining access to cash as usage declines across Australia. The Federal Government said the reforms complement its cash acceptance requirements for essential goods and are intended to support regional communities, older Australians, small businesses and others who continue to rely on cash, including during emergencies and outages. The framework gives the ACCC oversight of designated cash distribution services through fair, reasonable and transparent access terms, enables service-level standards to support access to cash, introduces crisis management powers to protect continuity of critical services, and requires designated providers to negotiate with customers in good faith.
ACCC proposes authorising regional multi-bank ATM trial
The ACCC has issued a draft determination proposing to authorise the Australian Banking Association and participating financial institutions to conduct a trial of multi-bank regional ATMs. Under the proposed trial, all holders of Australian-issued cards would be able to make fee-free cash withdrawals, while customers of participating banks would also be able to make fee-free cash deposits at the shared ATM network. The ACCC proposes to grant authorisation for three years and has already granted interim authorisation to allow part of the proposed arrangements to commence while it considers the substantive application. Submissions on the draft determination closed on 3 September 2026.
PRUDENTIAL
APRA releases 2026–27 Corporate Plan
APRA has published its 2026–27 Corporate Plan, setting out its strategic priorities and supervision agenda for the next four years. The plan focuses on ensuring the risk management practices of banks, insurers and superannuation trustees keep pace with evolving threats, including geopolitical risks, cyber attacks, frontier AI and increasing reliance on technology platforms and service providers. APRA’s three strategic priorities are maintaining financial system safety and stability, balancing regulatory outcomes with industry costs, and improving APRA’s organisational effectiveness.
Key priorities include strengthening resilience to AI-enabled cyber threats, reviewing banks’ lending practices, conducting a new system-risk stress test, consulting on superannuation reforms and a risk-sensitive capital framework, finalising governance reforms for regulated entities, and consulting with ASIC on changes to the Financial Accountability Regime to reduce administrative burden. APRA also stated that its policy agenda is intended to have a net-neutral impact on regulatory burden, with new requirements broadly offset by regulatory simplification initiatives.
SUPERANNUATION
Proposed superannuation and consumer protection reforms
The Federal Government has announced a package of reforms aimed at strengthening consumer protections and improving the resilience of Australia’s superannuation and financial system following the collapses of the Shield Master Fund (Shield) and First Guardian Master Fund (First Guardian). The reforms include stronger protections for members of APRA-regulated superannuation funds, including caps on advice fee deductions, significantly increased penalties for trustee misconduct, new powers for APRA to impose risk-based capital requirements on trustees offering higher-risk investment options, and powers for ASIC to direct trustees to commence remediation where investment option failures may involve breaches of trustee obligations.
The package also includes measures targeting risks in the self-managed superannuation fund (SMSF) sector, lead generation and managed investment schemes, reforms to financial advice and changes to the Compensation Scheme of Last Resort (CSLR). Key proposals include mandatory SMSF trustee education, restrictions on superannuation cold-calling and lead generation practices, enhanced governance requirements for managed investment schemes, implementation of the new class of adviser regime, and reforms to place the CSLR on a more predictable and sustainable footing. The Federal Government will continue consulting with industry, consumer groups and regulators as it develops the legislation needed to implement the reforms.
APRA to strengthen superannuation investment governance
APRA has announced plans to consult on reforms aimed at strengthening investment governance across the superannuation industry, following the Federal Government’s proposal (see above) for a compensation scheme that would provide members with a clearer pathway to compensation where significant losses arise from trustee failures. Under the proposal, APRA would set capital requirements for trustees offering higher-risk investment options to help ensure they have the financial capacity to meet their obligations under the compensation scheme.
As part of this work, in September 2026, APRA will consult on a package of reforms to improve investment governance standards and reduce the likelihood of member harm. The proposed reforms will address weaknesses identified in its 2025 review of industry practices and will focus on areas including trustee investment capability, onboarding and monitoring practices, conflicts management, member-level diversification, and trustee oversight and accountability. While the reforms would apply to all trustees, APRA expects the greatest impact to be on platform trustees, given the complexity of their products and investment menus.
APRA releases 2026 superannuation performance package
APRA has released its 2026 Comprehensive Product Performance Package, comprising a methodology paper and an insights paper that provide greater transparency into the regulator’s assessment of superannuation product performance. The package explains how APRA assesses investment performance, fees and costs across superannuation products and is intended to help trustees, members and other stakeholders better understand the factors driving long-term outcomes. The insights paper highlights APRA’s observations from its analysis of product performance across the superannuation industry, including areas where outcomes have improved and where concerns remain.
AML/CTF
AUSTRAC targets businesses that have not enrolled under AML/CTF regime
AUSTRAC has begun issuing notices to businesses that appear to be providing designated services but have not enrolled under Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws. The notices require businesses, including real estate agents, accountants, lawyers and jewellers, to provide information to help AUSTRAC determine whether they are providing regulated services and complying with their obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth).
The action follows the expansion of Australia’s AML/CTF regime on 1 July 2026 to cover a range of additional sectors, including real estate, legal, accounting, conveyancing, trust and company services, and dealers in precious stones and metals. AUSTRAC said enrolment is a legal requirement and indicated that while its focus remains on helping businesses comply, businesses that fail to engage with their obligations should expect increased regulatory scrutiny.
Fintel Alliance uncovers coordinated mortgage fraud across major lenders
AUSTRAC’s Fintel Alliance has identified coordinated mortgage fraud and systemic weaknesses across Australia’s lending sector following a joint analysis involving 10 major banks. The initiative identified potentially hundreds of millions of dollars in suspected fraudulent loans, largely linked to Sydney properties, involving inflated incomes, misrepresented employment details and fabricated or unverifiable business activity used to support loan applications. The review also identified the use of offshore and third-party funds to complete property settlements and make mortgage repayments.
AUSTRAC found recurring warning signs across multiple lenders, including falsified documents and the repeated involvement of the same mortgage brokers, accountants and law firms in multiple applications. Intelligence generated through the project has been shared with regulators and law enforcement agencies, including ASIC, the Australian Taxation Office and the Tax Practitioners Board, while participating banks have commenced investigations and strengthened controls. AUSTRAC has urged all mortgage lenders to review their loan books for signs of fraud, improve detection measures and report suspicious activity.
AUSTRAC warns of impersonation scams
AUSTRAC has warned consumers and regulated businesses to remain vigilant following reports of scammers impersonating the agency and its staff to obtain money and sensitive information. AUSTRAC said scammers are using emails, phone calls and messages that appear legitimate to pressure victims into making urgent payments or disclosing personal details. The regulator emphasised that it does not contact members of the public unexpectedly demanding payment and will never request payment through cryptocurrencies or messaging applications such as WhatsApp or Telegram.
AUSTRAC said impersonation scams are becoming increasingly sophisticated and are designed to exploit trust in government agencies by creating a false sense of urgency. The regulator urged recipients of unexpected communications claiming to be from AUSTRAC to verify the contact through official channels before taking any action. AUSTRAC also reminded the public that it will generally contact individuals before taking action and will provide written notification where payment is required.
DISPUTES AND ENFORCEMENT
AFCA records highest-ever complaint volume
Australians lodged a record 119,949 complaints with the Australian Financial Complaints Authority (AFCA) in 2025–26, marking the highest number of complaints on record and the third consecutive year complaint volumes have exceeded 100,000. AFCA said the figures reflect ongoing cost-of-living pressures and broader economic challenges affecting consumers across the financial services sector. The most complained-about products were personal transaction accounts, motor vehicle insurance and credit cards, while the most common issues were delays in claim handling, service quality and claim rejections.
Banking and finance remained AFCA’s largest complaint area, with growth in financial difficulty and credit reporting complaints, while complaints relating to superannuation and investments and advice increased sharply. AFCA attributed the rise in investment complaints largely to Shield and First Guardian collapses, and reported a 12 per cent increase in scam complaints. Since commencing operations in 2018, AFCA has received approximately 690,000 complaints and helped secure $2.6 billion in compensation or refunds for consumers and small businesses.
AFCA publishes three new and updated complaint guidance papers
AFCA has published three new and updated Approach papers outlining how it assesses particular types of financial complaints. The papers are intended to help firms, consumers and advisers better understand AFCA’s approach to resolving disputes and to support earlier resolution of complaints. AFCA emphasised that the publications reflect its existing practices and do not change how complaints are assessed or determined. The publications comprise an updated Approach to non-financial loss, which expands guidance on compensation for non-financial loss and includes additional case studies; a new Approach to general insurance claims handling, addressing AFCA’s assessment of claims handling obligations and remedies; and a new Approach to uninsured motorist complaints, outlining AFCA’s jurisdiction, approach to liability and available remedies in those disputes.
AFCA consults on 2026–27 Approach publication program
AFCA has commenced consultation on its proposed 2026–27 Approach consultation schedule, seeking feedback on the Approach documents it intends to develop during the coming year. AFCA said the annual schedule is designed to provide greater visibility of upcoming consultations and help stakeholders plan resources and engagement activities in advance. AFCA proposes to consult on only two Approach documents during 2026–27. AFCA noted that consultation priorities and timing will take into account legislative and regulatory developments, available resources and the need to support timely complaint resolution. Submissions are open until 4 September 2026.
AFCA consults on proposed scam complaint rules
AFCA has commenced consultation on proposed changes to its Rules to enable it to consider scam-related complaints under the Scams Prevention Framework (SPF). The consultation follows the Federal Government’s authorisation of AFCA as the single external dispute resolution scheme for SPF complaints from 31 March 2027, requiring AFCA to establish a new jurisdiction for scam complaints that reflects the framework’s legislative requirements. The consultation closes on 28 September 2026.
Bendigo Bank admits BEAR breaches following cyber attack
Bendigo and Adelaide Bank Limited (Bendigo Bank) has admitted breaching its obligations under the former Banking Executive Accountability Regime in connection with a 2023 cyber attack affecting its Alliance Bank business. APRA alleges the bank failed to maintain adequate customer authentication controls, conduct appropriate testing of those controls, ensure adequate information security governance and risk management, and appropriately allocate accountability for the relevant information technology systems.
The cyber attack occurred between 3 and 7 March 2023 and resulted in an unauthorised actor accessing approximately 257 customer accounts and conducting 286 unauthorised transactions totalling about $490,000. While Bendigo Bank reimbursed all affected customers, APRA noted that a number of the security weaknesses exploited in the attack had been identified through penetration testing in 2020 but had not been addressed before the incident occurred. APRA has commenced civil penalty proceedings in the Federal Court, with the parties proposing an $8 million penalty, subject to court approval. APRA stated that the relevant control weaknesses have since been remediated and it does not currently have concerns regarding the adequacy of the bank’s information security controls.
APRA imposes licence conditions on Bendigo Bank
APRA has imposed licence conditions on Bendigo Bank following an independent review that identified longstanding and pervasive weaknesses in the bank’s non-financial risk management framework. The review found deficiencies in governance, accountability, compliance management, risk oversight and risk management capability, and concluded that previous remediation efforts had not delivered sustainable improvements.
The licence conditions require Bendigo Bank to undertake a comprehensive remediation program, engage an independent assurer and provide board attestations on its progress. APRA will also maintain the bank’s existing $50 million operational risk capital add-on until it is satisfied that the underlying prudential concerns have been effectively addressed.
Netwealth contravened the Corporations Act over First Guardian
The Federal Court has declared that Netwealth Superannuation Services Pty Ltd and Netwealth Investments Limited (collectively Netwealth) contravened the Corporations Act in relation to First Guardian. The Court found that Netwealth failed to obtain and assess sufficient information about First Guardian, did not undertake adequate enquiries to understand and evaluate the fund’s investment risks, and failed to inform members of the potential illiquidity of the investment.
The proceedings followed ASIC’s investigation and Netwealth’s agreement to compensate affected members. More than $100 million was paid to over 1,000 investors in January 2026 after members’ retirement savings were exposed to First Guardian. ASIC did not seek a pecuniary penalty, citing the particular circumstances of the case, including Netwealth’s timely compensation of affected members.
Court imposes $7.3 million penalty on Fiducian over ESG fund
The Supreme Court of New South Wales has ordered Fiducian Investment Management Services Limited (FIMS) to pay a $7.3 million penalty after finding that it breached its duty to act with care and diligence as responsible entity of the Diversified Social Aspirations Fund and made statements liable to mislead the public about the fund’s ethical and socially responsible investment objectives.
The fund was marketed as investing in companies that were positive for society and the environment and avoiding harmful activities. However, between October 2019 and May 2024, the underlying funds in which it invested held interests in companies that, among other things, derived revenue from fossil fuels. The Court found that FIMS failed to adequately monitor underlying investments, review investment strategies, or align the fund’s actual investments with its stated environmental, social and governance (ESG) objectives. Investor concerns about the fund’s holdings had been raised from at least 2019, yet FIMS did not appropriately amend or qualify its ESG-related statements. The case represents ASIC’s fourth greenwashing civil penalty outcome and its first involving a responsible entity’s failure to discharge its duty of care and diligence in connection with ESG claims.
ASIC steps up enforcement against high-risk market participants
ASIC has reported 150 administrative enforcement outcomes during 2025–26 aimed at removing high-risk participants from Australia’s financial, credit and corporate sectors. The actions included removing or restricting 87 individuals and businesses from providing financial services, removing or restricting 27 individuals and businesses from providing credit services, and disqualifying 36 individuals from managing corporations. ASIC said financial services removals and restrictions reached their highest level in the past five years, while director disqualifications increased significantly compared with the previous financial year. ASIC noted that many of these outcomes resulted in permanent banning orders, licence cancellations or director disqualifications, including action against financial advisers, credit providers and individuals linked to major investment schemes.
AUSTRAC suspends Cryptolink’s crypto ATM operations
AUSTRAC has suspended the registration of Cryptolink Pty Ltd (Cryptolink), preventing it from operating its network of 96 cryptocurrency ATMs across Australia for three months from 9 August 2026. The regulator said it remains concerned about Cryptolink’s compliance with AML/CTF obligations and its ability to manage high-risk transactions conducted through its crypto ATMs.
AUSTRAC noted that while Cryptolink had previously entered into an enforceable undertaking and addressed certain compliance issues, it subsequently failed to meet basic reporting obligations, including submitting threshold transaction reports and responding to information requests from AUSTRAC. The company had previously been the subject of regulatory action following alleged contraventions identified by AUSTRAC’s Cryptocurrency Taskforce, including weaknesses in its AML/CTF risk assessments and late transaction reporting.
AUSTRAC investigates Western Union over AML/CTF concerns
AUSTRAC has commenced an investigation into Western Union Financial Services Australia Pty Ltd and The Western Union Company (collectively Western Union) over concerns about the management of high-risk payment channels, customers and affiliates. AUSTRAC said international payment service providers are particularly vulnerable to criminal exploitation and that it has serious concerns about whether Western Union has adequately managed those risks. The investigation follows AUSTRAC’s consideration of data and intelligence holdings, prior regulatory engagement and an external audit of Western Union commissioned by AUSTRAC in 2025.
The investigation will focus on Western Union’s AML/CTF program, transaction monitoring systems and governance arrangements, including whether its controls are capable of identifying and managing money laundering and terrorism financing risks, particularly those associated with child sexual exploitation and terrorism financing. AUSTRAC emphasised that no decision has been made on potential enforcement action and noted that Western Union has committed to addressing issues identified in the external audit.
Debt collector pays penalties over alleged harassment and misleading conduct
Debt collection company Marshall Freeman Collections Pty Ltd (Marshall Freeman) has paid $59,400 in penalties after the ACCC issued three infringement notices concerning its debt collection practices, and has also provided a court-enforceable undertaking to the regulator. The ACCC alleged that, between July 2024 and June 2025, the company unduly harassed consumers by continuing to pursue payment without adequately addressing requests for information or disputes regarding the alleged debts. The ACCC also alleged that Marshall Freeman sent letters claiming it had instructions to commence legal proceedings when no such instructions existed.
Under its court-enforceable undertaking, Marshall Freeman admitted that its conduct breached, or was likely to breach, the Australian Consumer Law and committed to improving its debt collection and dispute-handling processes. The company has also agreed to implement a consumer law compliance program and update its debt collection procedures.
Federal Court imposes $3.5 million penalty on CashnGo for unfair contract terms
The Federal Court has ordered Venture 5 Group Pty Ltd (trading as CashnGo) to pay a $3.5 million penalty for using and relying on unfair contract terms in more than 47,000 standard form small amount credit contracts with consumers. The proceedings were brought by ASIC, with the company admitting the conduct and consenting to the orders, including the penalty.
The Court found that contract terms used by CashnGo enabled its automated systems to monitor consumers’ bank account balances and repeatedly attempt withdrawals after missed repayments without prior notice of the timing, frequency or amount of the withdrawals, and without allowing consumers to opt out.
Between April 2022 and May 2025, CashnGo entered into more than 201,000 small amount credit contracts with over 85,000 consumers containing unfair contract terms. The company also admitted hundreds of thousands of contraventions relating to the inclusion and use of those terms, and acknowledged failing to provide compliant default notices on 67,545 occasions affecting more than 53,000 consumers.
The Court declared several indemnity and limitation of liability provisions void from the outset and ordered replacement repayment terms from 14 September 2026, including a consumer opt-out right for future withdrawal practices. CashnGo is also permanently restrained from using the unfair terms in future contracts.