Financial Services and Credit Monthly Update December 2025
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We’ve wrapped up 2025 with our December monthly update, free to download by clicking the button below.
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The Dwyer Harris Team
COMMERCIAL CREDIT
ASIC issues catalogue of obligations for private credit funds
On 9 December 2025, ASIC published a catalogue of key legal obligations and regulatory guidance for operators of private credit funds. The resource is designed as a practical reference point for both retail and wholesale fund operators and is also relevant to the broader funds management sector.
The catalogue follows ASIC’s recent roadmap for capital markets and aims to help firms identify existing compliance requirements. It does not replace legal advice and does not cover all applicable obligations. ASIC has flagged plans to refresh regulatory guidance in 2026–2027, incorporating surveillance findings and clarifying expectations for wholesale funds. Earlier reports highlighted poor practices in private credit markets, prompting ASIC to signal further targeted surveillance focusing on real estate lending strategies, distribution, fees, margin structures and conflict management.
COMPETITION
ACCC clears banking industry collaboration on cash distribution
On 17 December 2025, the Australian Competition and Consumer Commission (ACCC) issued a final determination allowing the Australian Banking Association (ABA) and other industry participants to work together on maintaining cash distribution across the country and on business continuity planning. The authorisation, which runs until 31 December 2026, comes with conditions aimed at transparency and accountability. These include regular reporting and a requirement for the ABA to undertake reasonable consultation on cash-in-transit initiatives before any in-principle agreement is reached. The ACCC concluded that, subject to these conditions, the collaboration is likely to deliver public benefits that outweigh potential detriments. Further details are available on the ACCC’s public register.
CORPORATE
ASIC review finds gaps in corporate whistleblower programs
The Australian Securities and Investments Commission (ASIC) has published Report 827 following its first whistleblower questionnaire. The report benchmarks policies and practices across 134 entities in 18 industries between July 2024 and June 2025. The review revealed significant variation in program maturity and highlighted areas for improvement. Key findings include:
over one-third of companies lack a dedicated whistleblower webpage;
a quarter do not provide regular staff training; and
more than half have not sought employee feedback in the past year.
Larger firms and those in mining were most likely to have mature practices, though some smaller companies also performed well. ASIC noted that effective programs should enable anonymous disclosures, foster a speak-up culture, and provide clear protections. The regulator will continue monitoring compliance and engaging with companies with less mature practices.
Government unveils National AI Plan
On 2 December 2025, the Federal Government launched its National AI Plan, outlining a strategy to grow the domestic AI industry and embed AI across the economy. The plan sets three overarching goals:
Capture the opportunity by investing in smart infrastructure, supporting local AI capability and attracting global investment.
Spread the benefits through broad adoption, workforce training and improved public services.
Keep Australians safe via legislative and regulatory frameworks to mitigate AI-related harms, alongside international engagement promoting responsible practices.
The plan emphasises competitiveness, productivity and resilience, aiming to ensure all Australians benefit from AI regardless of region or industry.
ASIC expands email lodgement for paper forms
ASIC has introduced email lodgement for 35 previously paper-only forms, aiming to streamline regulatory interactions. The newly eligible forms cover a range of corporate and managed investment scheme notifications, including share capital changes, auditor appointments, and updates to responsible entities. While most ASIC forms can already be lodged online, some still required postal submission; email lodgement now offers a faster alternative, with paper lodgement remaining available. ASIC has also consolidated its document lodgement requirements into a single resource and confirmed that electronic signatures are accepted on approved PDF forms.
DIGITAL ASSETS
ASIC grants exemptions to boost digital asset innovation
On 9 December 2025, ASIC finalised new class relief measures aimed at supporting growth in the digital assets and payments sectors. The relief exempts intermediaries from holding separate Australian financial services, market, or clearing and settlement facility licences when providing services related to eligible stablecoins or wrapped tokens.
ASIC has also permitted providers to hold digital assets that are financial products in omnibus accounts, provided they maintain robust record-keeping and reconciliation procedures. These changes follow ASIC’s updated digital asset guidance (INFO 225) released in October 2025, and were foreshadowed in Consultation Paper 381.
ESG
ASIC releases sustainability reporting modules for smaller companies
ASIC has launched its first educational modules to help smaller companies prepare for new sustainability reporting requirements. The modules explain core concepts such as governance, strategy, risk management and metrics, which underpin the forthcoming standards.
The resources aim to assist entities with limited expertise or capacity to integrate sustainability considerations into their reporting processes. They provide practical guidance on understanding and applying the principles of mandatory disclosures.
Additional modules will be released progressively, covering more detailed aspects of the standards. This initiative is part of ASIC’s broader program to support industry readiness for sustainability reporting obligations.
FINANCIAL ADVICE
Final countdown for adviser qualification compliance
ASIC has issued a last call for financial advisers who provide personal advice to retail clients after 31 December 2025. Existing providers must ensure they meet education and training standards, verify their details on the Financial Advisers Register, and have their Australian financial services (AFS) licensee notify ASIC of qualifications or reliance on the experienced provider pathway.
Failure to meet the qualifications standard by 1 January 2026 will see authorisations lapse by law, requiring advisers to complete a professional year and obtain an approved degree before returning to practice. ASIC’s latest review shows 2,326 relevant providers have yet to meet the standard, with 836 potentially eligible for the experienced provider pathway but not yet recorded. AFS licensees are urged to update records promptly. ASIC has published step-by-step instructions and troubleshooting tips for updating adviser details via ASIC Connect.
FINANCIAL MARKETS
ASIC secures ASX commitments following inquiry interim report
ASIC has announced a package of reforms agreed with ASX Group (ASX) in response to the interim report of the inquiry into ASX. The measures include strengthening governance of ASX’s Clearing and Settlement Facilities Boards, resetting ASX’s transformation program “Accelerate” with clear milestones, and imposing an additional $150 million capital charge on ASX Limited until remediation is complete.
The inquiry, launched in June 2025, identified shortcomings in ASX’s governance, risk management, and culture, concluding that incremental measures were insufficient. ASIC and the Reserve Bank of Australia will also enhance their joint supervisory model. The capital charge is to be implemented by 30 June 2027 and maintained until ASIC is satisfied the agreed work is complete. The final report of the inquiry is due by 31 March 2026.
FINANCIAL PRODUCTS
ASIC updates guidance on product disclosure statements
ASIC has released an updated version of Regulatory Guide 168 on product disclosure statements (PDSs) following industry consultation. The revisions aim to clarify compliance obligations and consolidate guidance previously spread across multiple documents. Key changes include:
incorporating material from withdrawn guides and information sheets, including Regulatory Guides 65, 66, 197, 219, and Information Sheets 94 and 155;
updates to outline compliance risks and consequences if PDS requirements are not met; and
revising Appendix 1 to include ASIC’s guidelines for disclosures under s 1013DA of the Corporations Act 2001 (Cth) (Corporations Act), particularly where a PDS claims to consider labour standards or environmental, social or ethical factors.
ASIC extends relief for litigation funding and conditional costs schemes
ASIC has extended temporary relief for litigation funding arrangements and conditional costs schemes until 30 June 2026. The relief, originally introduced in 2020, exempts these arrangements from certain managed investment and financial services licensing requirements under the Corporations Act.
Litigation funding schemes typically involve a third-party funder financing legal proceedings in exchange for a share of any settlement or judgment. Conditional costs schemes allow lawyers to charge higher fees if a case succeeds. Without the relief, these arrangements could be treated as managed investment schemes, triggering compliance obligations that ASIC considers unnecessary for their operation.
ASIC stated that the extension provides certainty while the government considers broader policy settings for litigation funding.
FINANCIAL SERVICES
ASIC updates guidance on industry codes of conduct
On 2 December 2025, ASIC released an updated version of Regulatory Guide 183 (RG 183), which sets out its approach to industry codes of conduct in the financial services and credit sectors. The revised guidance reflects legislative changes since the guide was last updated in 2013, and clarifies ASIC’s role in relation to industry codes and the criteria and process for obtaining ASIC approval. While developing a code remains voluntary and ASIC approval is not mandatory, RG 183 outlines how approval can be sought and retained. The updated guide aims to simplify requirements for industry bodies considering code development or renewal.
ASIC updates guidance on digital disclosures
ASIC has revised Regulatory Guide 221 on facilitating digital financial services disclosures, following industry consultation. The updated guide clarifies how Parts 7.7 and 7.9 of the Corporations Act, associated regulations and legislative instruments apply to digital delivery of disclosures.
Key changes include removal of outdated references and clearer articulation of ASIC’s expectations for electronic disclosure practices. The update aligns with the ASIC Corporations (Electronic Disclosure) Instrument 2025/447, which provides relief allowing providers to publish disclosures digitally and notify clients of availability, rather than delivering hard copies.
ASIC consults on remake of technical relief and credit disclosure instruments
ASIC has proposed remaking two legislative instruments set to sunset on 1 April 2026:
ASIC Corporations (Miscellaneous Technical Relief) Instrument 2015/1115, which provides machinery relief under the Corporations Act for AFS licensees and related parties; and
ASIC Credit (Updated details for prescribed disclosure) Instrument 2016/200, which modifies certain credit disclosure requirements.
Consultation closes on 23 January 2026.
ASIC consults on renewal of relief for foreign licensees and ADIs
ASIC has opened consultation on remaking two relief instruments set to expire in 2026:
ASIC Corporations (Foreign Licensees and ADIs) Instrument 2016/186, which exempts foreign AFS licensees from certain record-keeping and financial reporting obligations, and foreign authorised deposit-taking institutions (ADIs) from holding an AFS licence when dealing in derivatives and foreign exchange on their own behalf; and
ASIC Corporations (Licence Conditions—Treatment of Lease Assets) Instrument 2021/229, which allows AFS licensees to include right-of-use lease assets when calculating net tangible assets and related financial resource requirements.
The instruments will be remade largely unchanged. Submissions close on 23 January 2026.
ASIC extends relief for foreign financial services providers
ASIC has extended transitional relief for foreign financial services providers (FFSPs) by 12 months, pushing the expiry date from 31 March 2026 to 31 March 2027. The relief exempts FFSPs from holding an AFS licence when servicing wholesale clients in Australia.
The extension applies to ASIC’s sufficient equivalence and limited connection relief, originally set to lapse in March 2026. It follows the Government’s introduction of legislation on 26 November 2025 for a new licensing exemption regime under the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025 (Cth). The new regime will commence 12 months after Royal Assent.
ASIC has also remade and amended other relevant instruments.
Consultation on professional indemnity insurance for CSLR
The Assistant Treasurer and Minister for Financial Services has directed the Treasury to consult on ways to improve the effectiveness of professional indemnity (PI) insurance in meeting compensation claims under the Compensation Scheme of Last Resort (CSLR). The consultation aims to support the scheme’s long-term sustainability by ensuring PI cover better responds to claims. The consultation closes on 13 February 2026.
ASIC updates guidance on managing conflicts of interest
ASIC has released an updated version of Regulatory Guide 181 AFS Licensing: Managing Conflicts of Interest, replacing guidance first issued in 2004. The revised guide provides principles-based direction for AFS licensees on identifying and managing conflicts, clarifying the scope of obligations under s 912A(1)(aa) of the Corporations Act. Key changes include practical steps for effective conflict management, examples of conflict types, and a non-exhaustive catalogue of related legal obligations.
INSURANCE
Consultation on add-on insurance exemptions
The Treasury has launched a consultation on whether to maintain or expand exemptions from the deferred sales model for certain add-on insurance products. The current exemptions, set out in the Australian Securities and Investments Commission Regulations 2001 (Cth), began on 5 October 2021 and are due to expire on 5 October 2026. The consultation is seeking submissions on whether these exemptions should continue or if additional classes of add-on insurance should be exempted in future. The consultation closes on 30 January 2026.
Government overrides terrorism exclusions for Bondi attack claims
The Federal Government has declared the Bondi attack a terrorist incident under the Terrorism and Cyclone Insurance Act 2003 (Cth). The declaration, made on 16 December 2025, overrides terrorism exclusion clauses in affected businesses’ insurance policies, ensuring claims cannot be denied on that basis.
Businesses impacted by the attack can claim for commercial property damage, business continuity losses and public liability. Insurers are required to process these claims despite any terrorism-related exclusions. Affected businesses are advised to contact their insurers in the first instance to lodge claims.
PAYMENTS
Cash acceptance mandated for essential purchases
The Federal Government has finalised regulations requiring fuel and grocery retailers to accept cash for in-person transactions from 1 January 2026. The mandate applies to purchases of $500 or less made between 7am and 9pm. Small businesses with annual turnover under $10 million are exempt, unless they share a trademark with a larger retailer. Consumers can also continue paying bills in cash at Australia Post outlets through Post Billpay. The Federal Government will review the mandate after three years to assess its effectiveness.
PRIVACY AND DATA
OAIC launches first privacy compliance sweep
Australia’s privacy regulator will kick off 2026 with its inaugural compliance sweep, targeting businesses that collect personal information in person. The Office of the Australian Information Commissioner (OAIC) will review privacy policies of around 60 entities across six sectors: real estate, chemists, licensed venues, car rental firms, car dealerships, and pawnbrokers.
The sweep, starting in early January, aims to ensure compliance with Australian Privacy Principle (APP) 1.4, which mandates specific disclosures in privacy policies. The focus on in-person collection follows concerns about power imbalances and risks of overcollection when consumers provide details at property inspections, venues, or service counters. Non-compliant entities may face infringement notices and penalties of up to $66,000, reflecting expanded enforcement powers introduced in 2024 amendments to the Privacy Act 1988 (Cth). The OAIC will apply a risk-based approach, prioritising high-profile and high-risk businesses, including those previously affected by data breaches.
PRUDENTIAL
APRA confirms phase-out of AT1 capital instruments
The Australian Prudential Regulation Authority (APRA) has finalised amendments to its prudential framework to remove Additional Tier 1 (AT1) instruments, commonly known as hybrid bonds, from the list of eligible regulatory capital for banks. The decision follows a multi-year review and consultation process, citing international evidence that AT1 failed to provide stability during crises and posed contagion risks.
Banks will replace AT1 with simpler, more reliable capital forms that absorb losses more effectively in times of stress. Existing AT1 instruments will be phased out gradually, with full removal expected by 2032. Legal terms of outstanding AT1, including subordination, remain unchanged. The revised framework also sets the leverage ratio at 3.25% of Common Equity Tier 1 capital, maintaining current calibration after industry feedback. The new standards take effect from 1 January 2027.
APRA consults on three-tier banking framework
APRA has released a discussion paper proposing a formal three-tier structure for its banking prudential framework, aimed at embedding greater proportionality and supporting competition. Currently, banks are classified as either significant or non-significant financial institutions. Under the proposal, a new top tier, Most Significant Financial Institutions, would apply to banks with assets exceeding $300 billion, covering the four majors and Macquarie Bank Limited.
The second tier would include other significant institutions, with the threshold for this category rising from $20 billion to $30 billion. All remaining banks would fall into the third tier as non-significant institutions, benefiting from extended compliance timelines for new or revised requirements. APRA also proposes a minimum 12-month transition period for banks moving to a higher tier. Submissions can be made until 27 February 2026, with finalisation of the proposed changes expected in 2026.
APRA consults on CPS 230 changes for non-traditional service providers
APRA has opened consultation on targeted amendments to CPS 230 Operational Risk Management. The proposed changes are designed to address challenges faced by regulated entities with material arrangements involving non-traditional service providers. APRA intends to finalise the amendments ahead of the 1 July 2026 compliance date, aiming to streamline processes and ease transition for affected institutions.
SUPERANNUATION
Consultation begins on superannuation concession reforms draft Bill
Treasury released draft legislation for the Better Targeted Superannuation Concessions measure on 19 December 2025, with submissions closing 16 January 2026. The Treasury Laws Amendment (Better Targeted Superannuation Concessions) Bill 2025 (Cth) would introduce a Division 296 tax on superannuation earnings for individuals with total superannuation balances exceeding $3 million. The draft incorporates substantial changes from earlier proposals following stakeholder consultation.
Key features include a two-tier tax structure: an additional 15% tax applies to earnings corresponding to balances between $3 million and $10 million (total tax rate of 30%), and an additional 25% applies to earnings on balances exceeding $10 million (total tax rate of 40%). Both thresholds will be indexed to CPI in $500,000 increments, consistent with the transfer balance cap.
The measure now applies to realised earnings only, abandoning the previous approach of taxing unrealised gains based on balance movements.
The commencement date has been deferred to 1 July 2026, applying from the 2026-27 income year. Treasury will undertake further consultation on implementation details, including calculation methodologies for realised gains and attribution to members.
AML/CTF
AUSTRAC outlines expectations ahead of March 2026 AML/CTF reforms
The Australian Transactions Reports and Analysis Centre (AUSTRAC) has updated its guidance for businesses regulated under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (AML/CTF Act) ahead of major reforms taking effect on 31 March 2026. The statement sets out expectations for implementation plans where businesses cannot meet new obligations by the deadline.
Plans should detail how money laundering and terrorism financing risks will be managed during the transition, identify gaps, outline remediation timelines, and assign accountability. AUSTRAC will consider the existence and progress of such plans when assessing compliance but warns that failure to manage risks may lead to civil penalties or suspension of registration.
New businesses commencing before March 2026 are encouraged to adopt systems aligned with the reformed regime from the outset. AUSTRAC will engage with industry to monitor progress and address constraints pragmatically.
AUSTRAC takes two licensees to court over compliance reporting failures
AUSTRAC has commenced civil penalty proceedings in the Federal Court against Castra Licensee Pty Ltd and Princeton Securities (NSW) Pty Ltd for breaching obligations under the AML/CTF Act. The regulator alleges that neither entity submitted an annual compliance report for the 2023 calendar year.
In September 2024, AUSTRAC issued infringement notices to 16 businesses, including Castra and Princeton, for failing to lodge the reports. Payment of the notices would have resolved the matter, but both firms failed to comply, prompting AUSTRAC to escalate the issue to court action.
DISPUTES AND ENFORCEMENT
ASIC updates IDR reporting handbook
On 1 December 2025, ASIC released an updated Internal Dispute Resolution (IDR) data reporting handbook to reflect recent legislative and regulatory changes affecting buy now pay later and digital asset sectors. The revision also introduces a new product category for mutual risk products, aimed at improving accuracy in complaint reporting.
The updated handbook is being published ahead of time to allow firms to adjust systems and processes. IDR reporting requirements remain unchanged for the January–February 2026 submission window, covering complaints from 1 July to 31 December 2025. Firms will first use the revised handbook in the July–August 2026 window for complaints received between 1 January and 30 June 2026. ASIC will amend the ASIC Corporations (Internal Dispute Resolution Data Reporting) Instrument 2022/205 to give legal effect to the updated handbook before the July–August 2026 reporting period.
Federal Court imposes $250 million penalties on ANZ for systemic failures
The Federal Court has ordered Australia and New Zealand Banking Group Limited (ANZ) to pay a combined $250 million in penalties following findings of widespread misconduct and systemic risk management failures. The breaches affected the Australian Government, taxpayers and more than 65,000 retail banking customers.
The Court determined that ANZ failed to adequately manage risks associated with its trading and operational systems, resulting in significant compliance shortcomings. These failures were found to have created systemic vulnerabilities and contributed to misconduct across multiple business units.
The penalties comprise separate amounts for contraventions of financial services laws and breaches of obligations relating to risk controls.
ASIC halts FXCM CFD sales over target market concerns
ASIC issued an interim stop order on 5 December 2025 against Stratos Trading Pty Ltd (FXCM), preventing it from offering contracts for difference (CFDs) to retail clients. The regulator found deficiencies in FXCM’s target market determination (TMD), which included investors with a medium risk appetite, despite CFDs being highly leveraged and volatile. The order covered CFDs referencing currencies, commodities, treasuries, stock indices, equities and cryptocurrencies. Existing clients could close or vary positions, but new retail accounts were barred. On 16 December 2025, ASIC revoked the order after FXCM amended its TMD to address concerns.
ASIC sues Diversa Trustees; APRA imposes licence conditions
ASIC has launched civil penalty proceedings in the Federal Court against Diversa Trustees Limited (Diversa), alleging multiple breaches linked to the First Guardian Master Fund (First Guardian Fund). Between 2020 and 2024, around $300 million was invested in First Guardian Fund through superannuation funds for which Diversa acted as trustee.
ASIC claims Diversa failed to conduct adequate due diligence before allowing member investments and did not properly monitor the fund. The regulator also alleges Diversa failed to enforce a 50% holding limit it had imposed for First Guardian Fund and lacked systems to ensure compliance. Further allegations include breaches of trustee duties under the Superannuation Industry (Supervision) Act 1993 (Cth) and obligations under the Corporations Act to provide services efficiently, honestly and fairly. ASIC is seeking compensation, declarations and civil penalties.
In related news, APRA has placed new licence conditions on Diversa following concerns about its ability to meet prudential obligations. The conditions require Diversa to strengthen its governance and risk management frameworks, including implementing an independent review of its operations and reporting progress to APRA. The measures aim to address deficiencies identified during APRA’s supervisory activities, particularly around oversight of outsourced service providers and compliance monitoring. Diversa must also provide APRA with regular updates on remediation efforts and ensure that its board actively oversees the implementation of these improvements. The additional conditions will remain in place until APRA is satisfied that Diversa has rectified the issues and can maintain compliance on an ongoing basis.
CBA penalised for alleged breaches of Consumer Data Right Rules
The Commonwealth Bank of Australia (CBA) has paid $792,000 in penalties after the ACCC issued four infringement notices for alleged breaches of the Consumer Data Right (CDR) Rules. The ACCC alleges CBA failed to enable data sharing for certain business accounts and partnerships, preventing affected customers from accessing CDR-enabled products and services such as accounting tools.
Complaints from consumers highlighted difficulties in using CDR, forcing manual workarounds or less secure data-sharing methods. CBA agreed to an administrative resolution, including enabling data sharing for remaining accounts by 19 December 2025 and providing remediation to impacted customers and accredited data recipients. The remediation program, which includes goodwill payments and compensation for substantiated losses, will commence from 19 January 2026.
Business lender and introducer fined for credit law breaches
The Federal Court has ordered Green County Pty Ltd (Green County) and Max Funding Pty Ltd (Max Funding) to pay a combined $515,000 in penalties for breaching consumer credit laws. Green County was fined $405,000 for engaging in unlicensed credit activity and breaching consumer protection provisions, while Max Funding received a $110,000 penalty for unlicensed credit activity. The case concerned four loans provided to two consumers, which were incorrectly classified as business loans. Neither company held an Australian credit licence, and the Court found they failed to make reasonable inquiries into the true purpose of the loans.
Netwealth to compensate members after First Guardian Fund collapse
Netwealth Superannuation Services Pty Ltd (Netwealth) has committed to compensate more than 1,000 investors, totalling over $100 million, who held superannuation in the collapsed First Guardian Fund. The payments, due by 30 January 2026, follow admissions by Netwealth and Netwealth Investments Limited that they breached the Corporations Act by failing to properly assess the risks of First Guardian Fund investment options offered through their superannuation platform.
In parallel, APRA has accepted a court-enforceable undertaking from Netwealth to address deficiencies in its investment governance framework. The undertaking, prompted by a thematic review, includes independent expert reviews of high‑risk investment options and the investment governance framework, implementation of a remediation uplift plan, and enhanced onboarding and monitoring of investment choices. Netwealth must also halt onboarding certain high‑risk investments until expert oversight confirms compliance with strengthened processes.
ASIC has commenced separate Federal Court proceedings while coordinating with APRA to ensure robust outcomes for members.
APRA imposes licence conditions on Equity Trustees over investment governance
APRA has imposed additional licence conditions on Equity Trustees Superannuation Limited (ETSL) following concerns about its investment governance practices. ETSL, trustee for 11 superannuation entities with $37 billion under management, was found to have deficiencies in onboarding processes, investment option monitoring and reporting frameworks, and management of conflicts of interest.
Effective 18 December 2025, ETSL must appoint an independent expert to review its investment menus and governance framework, develop and implement an uplift plan, and attest to APRA that remediation is complete. It must also refrain from onboarding certain high-risk investment options until enhanced processes are verified.
APRA and AUSTRAC act on Bendigo Bank risk management failures
APRA and AUSTRAC have announced coordinated measures following an independent review that uncovered serious deficiencies in Bendigo and Adelaide Bank Limited’s approach to managing money laundering and terrorism financing risks. The review, conducted by Deloitte after suspected money laundering at a branch, found significant gaps in the bank’s risk management framework.
APRA will require the bank to conduct a root cause analysis of non-financial risk management issues and hold an additional $50 million in operational risk capital until remediation is complete. AUSTRAC has launched an enforcement investigation into the bank’s compliance with the AML/CTF Act.
ACCC accepts undertaking from Equifax over exclusive dealing concerns
The ACCC has accepted a court-enforceable undertaking from Equifax Australasia Workforce Solutions Pty Ltd (Equifax) after investigating whether its contracts amounted to unlawful exclusive dealing. Equifax agreed not to enter into new agreements restricting competitors’ access to payroll and superannuation data used for automated income verification services.
The investigation focused on a 2021 agreement with SuperChoice Services Pty Ltd (SuperChoice), which prevented SuperChoice from supplying data to other providers and included a clause to phase out sharing data with a competitor. The contract also incentivised exclusivity through revenue sharing. Equifax ceased relying on these provisions in May 2025 and removed them in September.
Federal Court orders winding up of NGS blockchain mining companies
The Federal Court has found that NGS Group Limited (NGS Group), NGS Crypto Pty Ltd (NGS Crypto) and NGS Digital Pty Ltd operated a financial services business without an AFS licence and promoted an unregistered managed investment scheme. The companies have been permanently restrained from providing financial services, and liquidators have been appointed to wind up the entities and the scheme.
Over 450 Australians invested about $59 million with NGS Group over six years, many using self-managed superannuation funds. The Court found contraventions of the Corporations Act and a lack of confidence in the companies’ management. Receivers had previously been appointed over digital currency assets in April 2024 to protect investor funds. ASIC’s investigation into the companies and their directors continues.
Bupa fined $35m for misleading health insurance claims
The Federal Court has ordered Bupa HI Pty Ltd (Bupa) to pay $35 million in penalties after finding the insurer engaged in unconscionable conduct and made false or misleading representations about members’ entitlements to private health insurance benefits. Between May 2018 and August 2023, Bupa incorrectly advised members that they were not entitled to benefits for certain claims, when in fact they were. Most affected claims involved hospital treatments where multiple procedures were performed, some covered and some not. Rather than approving the covered portion, Bupa rejected entire claims.
The Court also found Bupa acted unconscionably between June 2020 and February 2021 in assessing “Mixed Coverage Claims”. Thousands of consumers were impacted, with some delaying or cancelling necessary treatment. Hospitals and medical providers also missed payments. In addition to the penalty, the Court imposed a five-year injunction restraining Bupa from similar conduct. Bupa has commenced a remediation program and provided a court-enforceable undertaking to compensate affected members, hospitals and providers. More than $14.3 million has already been paid across 4,100 claims.
Proceedings were initiated by the ACCC in June 2025. Bupa holds about 25.5% of Australia’s private health insurance market, with 4.5 million members.
Federal Court imposes $925,000 penalties for conflicted remuneration breaches
The Federal Court has ordered RM Capital Pty Ltd and SMSF Club Pty Ltd to pay a combined $925,000 in penalties for breaches of conflicted remuneration provisions under the Corporations Act. The case concerned arrangements between the two entities that resulted in payments to SMSF Club for referring clients to RM Capital, which ASIC alleged created conflicts of interest.
RM Capital was found to have failed to take reasonable steps to ensure its authorised representatives complied with the law, while SMSF Club received benefits that influenced the advice given to clients. The Court determined these arrangements contravened the ban on conflicted remuneration, which aims to protect consumers from advice compromised by financial incentives.
The penalties include $500,000 against RM Capital and $425,000 against SMSF Club.
Macquarie Securities to pay $35 million for systemic short sale reporting failures
Macquarie Securities (Australia) Limited (MSAL) will pay $35 million after admitting it misled the market by incorrectly reporting millions of short sale transactions over several years. The inaccuracies were caused by long-standing weaknesses in MSAL’s systems and processes, which led to persistent reporting errors.
ASIC found these failures were systemic and continued despite internal awareness of the problems. The misreporting compromised the reliability of market data relied upon by investors and regulators.
As part of the resolution, MSAL will pay a civil penalty and costs, and has committed to significant remediation measures, including system upgrades and strengthened compliance controls to prevent future breaches.
APRA clamps down on HESTA after transition woes
APRA has imposed extra licence conditions on HESTA following major service disruptions during its June 2025 switch to a new administration provider. The super fund, with 1.1 million members and $100 billion under management, faced prolonged outages that harmed members.
The regulator found HESTA’s board governance and risk controls lacking, leaving it ill-prepared for the transition. HESTA must now commission independent reviews of its risk framework and board effectiveness, with APRA monitoring compliance.
Court imposes $7.1m penalty on Australian Unity Funds Management
On 23 December 2025, the Federal Court declared that Australian Unity Funds Management (AUFM) breached design and distribution obligations under the Corporations Act on 328 occasions. The breaches related to AUFM’s issuance of interests in its Select Income Fund to retail clients between October 2021 and October 2023.
The Court found AUFM failed to require questionnaires from some investors and, in other cases, issued interests without reviewing completed questionnaires to confirm clients were within the target market. AUFM was ordered to pay $7,125,000 in penalties and to publish an adverse publicity notice within 30 days, both on its website and directly to affected retail clients.