Financial Services and Credit Monthly Update July 2026

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CONSUMER CREDIT

ASIC highlights mortgage brokers’ best interests duty ahead of sector review

The Australian Securities and Investments Commission (ASIC) has outlined the regulator’s expectations of mortgage brokers as part of a broader review of compliance with the best interests duty. In a speech to the Mortgage and Finance Association of Australia, ASIC Commissioner Alan Kirkland noted that mortgage brokers now arrange around 81% of new residential mortgages in Australia and emphasised the importance of recommending products that are appropriate to a customer’s circumstances, documenting the basis for recommendations and ensuring consumers are adequately informed about available options. He stressed that acting in a customer’s best interests requires professional judgement and should not involve simply following customer instructions where a more suitable option is available.

The speech also highlighted ASIC’s focus on advice quality, complaints handling and misconduct reporting within the mortgage broking sector. Mr Kirkland said licensees should use data and monitoring processes to identify potential compliance issues and ensure broker recommendations are personalised and capable of demonstrating compliance with the best interests duty. He also noted that ASIC has reviewed complaints relating to mortgage brokers as part of its current sector review and reiterated the importance of effective internal dispute resolution processes. The review is expected to conclude later in 2026.

ASIC finds widespread failures in mortgage offset account administration

ASIC has found that failures in the administration of mortgage offset accounts have cost Australian borrowers more than $55 million in lost interest savings, with further compensation expected as banks continue remediation programs. The findings are set out in Report 837 Offsets, out of mind: Banks fall short on mortgage offset account promises, following a review of eight banks representing more than 70 per cent of Australia’s home loan market. ASIC found weaknesses across all reviewed banks in the way offset accounts were established, monitored and managed, resulting in some customers missing out on the interest savings associated with their home loans.

The review identified four recurring issues: difficulties identifying customer requests for offset accounts, inconsistent detection of offset account failures, delays in rectifying problems and compensating customers, and limited customer visibility over whether offset arrangements were operating correctly. ASIC reviewed data relating to 204,000 home loans and noted that some banks were unable to readily determine whether customers had requested an offset account, making it difficult to assess the full extent of customer harm. ASIC has called on all banks offering offset accounts to identify and address failures, strengthen controls and ensure affected customers are appropriately compensated.

CONSUMER PROTECTION

Unfair trading practices ban passed by Parliament

The Parliament has passed the Competition and Consumer Amendment (Unfair Trading Practices) Act 2026 (Cth), introducing a broad prohibition on unfair trading practices and subscription traps from 1 July 2027. The reforms target practices such as difficult subscription cancellation processes, undisclosed fees added late in the purchasing process, and online design features that steer consumers towards decisions they may not otherwise make. There will be a 12‑month transition period before commencement, during which businesses will have time to prepare for the new regime. The Federal Government has also provided additional funding to the Australian Competition and Consumer Commission (ACCC) to support guidance and education for businesses on their new obligations.

Importantly, the reforms will not apply to the financial services sector for the time being.

ASIC warns of rise in pump-and-dump scams using fake endorsements

ASIC has warned of an increase in pump-and-dump scams using fake celebrity endorsements, impersonations of financial institutions and messaging platforms. Scammers have been reported to be using the identities of well-known economists, market commentators and investment brands to attract consumers into private messaging groups, where they are encouraged to purchase shares based on purported investment tips. ASIC said the schemes artificially inflate share prices before the scammers sell their holdings, leaving investors exposed to significant losses. ASIC noted that these scams often involve genuine shares traded through legitimate brokerage accounts, which can make them appear credible. The regulator also highlighted the growing use of deepfakes generated by artificial intelligence (AI) and indicated that older Australians may be a particular target.

ACCC launches taskforce to combat ‘scambling’ scams

The National Anti-Scam Centre has established a new cross-sector taskforce to address the growing threat of “scambling”, a scam involving fake online gambling and casino platforms that manipulate outcomes, withhold winnings and encourage users to recruit others. The initiative follows a sharp increase in reported losses, with Scamwatch receiving 806 reports in 2025 and reported losses rising to $1.6 million, more than triple the losses reported in 2024. The ACCC noted that more than 45 per cent of reported losses in 2025 were attributed to consumers who self-identified as First Nations Australians.

The taskforce brings together regulators, law enforcement agencies, banks, telecommunications providers, digital platforms and community organisations to better understand how scambling schemes operate and identify opportunities for prevention and disruption. The ACCC has indicated that the scams often involve illegal online casino and gambling platforms promoted through social media and messaging services, with victims encouraged to make repeated payments and, in some cases, recruit others. The taskforce is scheduled to operate until December 2026, with a report on its findings to be published in 2027.

ACCC calls for stronger protections against unsolicited sales practices

The ACCC has released a report finding widespread non-compliance with consumer protections governing unsolicited sales, including door-to-door selling, telemarketing and sales approaches in public places. The review, conducted following a designated complaint lodged by the Consumer Action Law Centre, found that consumers are frequently exposed to high-pressure and misleading sales tactics, with many reporting pressure to make purchases, difficulties understanding agreements and problems with products or services purchased. The ACCC’s research found that unsolicited selling remains common, particularly in sectors such as solar products and energy-related services, with consumers often entering into significant finance arrangements as part of the sales process.

The ACCC has recommended a range of reforms, including increased penalties for breaches of unsolicited selling rules, the introduction of an “opt-in” model to replace the current cooling-off regime, and clarification that unsolicited selling laws apply where sales originate through online lead generation practices. The report also highlights concerns about the increasing use of consumer data collected through comparison websites, online quotes and surveys to generate unsolicited sales leads. The ACCC has recommended that the effectiveness of any reforms be reviewed within two years of implementation.

Government outlines AI consumer safety priorities

The Federal Government has announced a package of AI safety priorities designed to strengthen protections for consumers and support the safe deployment of AI across the economy. The measures form part of the Government’s National AI Plan and include proposals to legislate a “Digital Duty of Care”, consult on further privacy reforms, address AI safety in workplaces, examine consumer law responses to emerging risks such as retail surveillance pricing and agentic commerce, and develop a framework for the use of automated decision-making by federal agencies. The announcement also highlights broader AI safety initiatives already underway, including the work of the AI Safety Institute, safety testing of frontier AI systems, research partnerships with the CSIRO and other organisations, and collaboration on international AI safety initiatives.

CORPORATE

ASIC launches new company search service

ASIC has launched a public beta version of a refreshed companies and organisations register search service, giving users access to a redesigned platform for searching company information. The new service operates alongside ASIC Connect, where paid searches will continue to be conducted, and allows users to access company information that is available free of charge. The search service is used to verify company identities and ownership information and is relied upon by businesses, consumers and ASIC in carrying out regulatory functions. The updated platform includes enhanced search functionality, smart filters, a redesigned company profile view and new application programming interfaces for wholesale users such as information brokers.

ASIC finalises framework for enhanced beneficial ownership disclosures

ASIC has finalised the technical settings supporting Australia’s new enhanced beneficial ownership regime, which is intended to improve transparency about who ultimately owns, controls or has significant economic exposure to listed entities. The changes follow reforms passed in December 2025 that introduced enhanced substantial holding disclosure and beneficial ownership obligations for listed entities. ASIC has introduced a new consolidated Substantial Holding Notice form, simplified the methodology for calculating deemed economic interests and offsetting short positions in listed securities, and implemented an index-based format for registers of relevant interests.

The regulator has also updated Regulatory Guides 5 Relevant interests and deemed economic interests, 9 Takeover Bids and 222 Substantial holding disclosure and tracing requirements and made consequential amendments to a number of takeover and substantial holding guidance materials. From 4 December 2026, entities listed on Australian financial markets will become subject to the new disclosure requirements. ASIC said the reforms are intended to improve corporate transparency, market oversight and market efficiency, while reducing compliance complexity through simplified forms and guidance.

ESG

Government proposes tougher modern slavery obligations for large businesses

The Federal Government has announced reforms to strengthen Australia’s modern slavery framework, including the introduction of a new criminal offence for companies with annual consolidated revenue exceeding $100 million that fail to prevent modern slavery in their supply chains. The proposed offence would be accompanied by a defence where a company can demonstrate it took reasonable steps to prevent modern slavery, with further consultation to be undertaken on the design of the offence and associated enforcement mechanisms.

The Government also intends to introduce civil penalties and enforcement powers for non-compliance with existing obligations under the Modern Slavery Act 2018 (Cth). In addition, guidance and education initiatives are proposed to assist businesses in identifying, managing and remediating modern slavery risks within their operations and supply chains.

FINANCIAL ADVICE

ASIC reviews compliance with financial adviser qualifications standard

ASIC has completed a review of Financial Advisers Register records following the commencement of the financial adviser qualifications standard on 1 January 2026. The review focused on advisers whose records did not show any qualifications or training courses contributing to the standard. ASIC identified 132 existing advisers whose records appeared incomplete and engaged with 82 Australian financial services (AFS) licensees responsible for those advisers. As a result, 106 adviser records were updated to show compliance with the qualifications standard, while 26 advisers ceased to be authorised to provide personal advice to retail clients on relevant financial products.

ASIC has reminded AFS licensees and advisers to ensure the Financial Advisers Register accurately records how advisers meet the qualifications standard, including through approved qualifications, equivalent pathways or the experienced provider pathway. The regulator has also flagged the possibility of further reviews into the qualifications and training courses recorded on the register and has published a temporary dataset to assist licensees in verifying the information reported to ASIC.

FINANCIAL MARKETS

Government responds to Senate review of financial market infrastructure bill

The Federal Government has tabled its response to the Senate Economics Legislation Committee’s report on the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 (Cth). The Committee’s report was released in May 2024, and the Government’s response was tabled on 25 June 2026. The response sets out the Government’s position on the recommendations made by the Committee during its inquiry into the Bill, which concerns financial market infrastructure and related reforms.

ASIC consults on renewal of financial market relief instruments

ASIC is seeking feedback on proposals to remake three legislative instruments that provide relief relating to financial market operations and are scheduled to sunset on 1 October 2026. The instruments deal with the electronic issuance and transfer of securities through Austraclear, disclosure of directors’ interests, and record-keeping requirements for licensees dealing on foreign financial markets. ASIC has indicated that the instruments are operating effectively and continue to form a necessary part of the regulatory framework.

ASIC proposes to remake the instruments for a further five years, with only minor amendments intended to simplify drafting, improve clarity and adopt more market-neutral language. The substantive effect of the relief will remain largely unchanged. Submissions closed on 31 July 2026.

ASIC roundtable highlights priorities for the future of Australia’s capital markets

ASIC has released the key themes emerging from its Financial Markets and Innovation Roundtable held on 30 June 2026. Discussions focused on how Australia can maintain efficient, resilient and globally competitive capital markets while supporting innovation and investor protection. Participants identified four broad priorities: preparing Australia for increasingly global capital markets, strengthening market infrastructure foundations, pursuing innovation that improves productivity and market efficiency, and maintaining investor trust as markets evolve.

Participants highlighted the importance of modernising market infrastructure, improving capital formation and liquidity, reducing barriers to market participation and developing clear regulatory settings that support innovation. Topics discussed included tokenisation, AI, digital assets, fixed income market reform, collateral mobility and faster initial public offering (IPO) pathways.

ASIC proposes simplified guidance for sell-side research

ASIC has released a consultation proposing a substantial overhaul of its guidance on sell-side research, reducing Regulatory Guide 264 (RG 264) from 42 pages to eight pages and replacing the current approach with shorter, principles-based guidance. Under the proposal, research analysts would have greater input into the IPO process, while AFS licensees would remain responsible for maintaining effective controls to manage conflicts of interest, inside information and the independence of research. Consultation on the proposed revisions to RG 264 is open until 21 August 2026.

Consultation on renewal of low-volume financial market relief

ASIC is consulting on proposals to remake relief that exempts low-volume financial markets from the requirement to hold an Australian market licence. The current relief, contained in the ASIC Corporations (Low Volume Financial Markets) Instrument 2016/888, is due to sunset on 1 October 2026. The principal change proposed is an increase in the transaction value threshold used to determine whether a market qualifies as a low-volume financial market, from $1.5 million to $2.5 million. ASIC said the increase reflects factors including inflation and the fact the threshold has remained unchanged since 2016. All other proposed amendments are technical or consequential in nature and are not intended to materially alter the operation of the relief. Consultation closes on 20 August 2026.

FINANCIAL PRODUCTS

ACCC expands access to low and no-fee bank accounts

The ACCC has re-authorised Australian Banking Association member banks to continue collaborating under the Banking Code of Practice to provide low-income customers with access to basic, low-fee and no-fee bank accounts, and to suspend default interest charges on agricultural loans during droughts and natural disasters. The authorisation, granted for a further five years, is subject to new conditions designed to broaden access to lower-cost banking products.

Under the new conditions, participating banks must offer eligible new customers low or no-fee accounts, proactively identify existing customers who may qualify for these products and migrate eligible customers unless they choose to opt out. Banks must also take reasonable steps to contact potentially eligible customers and are prohibited from charging interest on informal overdrafts on eligible accounts.

FINANCIAL SERVICES

ASIC consolidates platform relief into new legislative instrument

ASIC has issued a new legislative instrument for operators of investor directed portfolio services (IDPSs) and IDPS-like schemes, replacing two existing instruments that provided regulatory relief for platform operators. The new instrument, ASIC Corporations (Platforms—IDPSs and IDPS-like Schemes) Instrument 2026/395, consolidates ASIC’s existing relief into a single instrument as part of a broader initiative to simplify regulatory requirements for industry participants. The instrument centralises platform relief provisions, updates and removes certain requirements, and replaces quarterly reporting obligations with electronic access to account information. ASIC has also revised the structure and language of the instrument to improve clarity and usability. ASIC has also indicated that related guidance in Regulatory Guide 148 will be updated to reflect the new instrument.

FINANCIAL SYSTEM

ASIC releases estimated industry funding levies for 2025–26

ASIC has published its 2025–26 Cost Recovery Implementation Statement (CRIS), setting out estimated regulatory costs and industry funding levies across its 52 regulated subsectors. ASIC estimates recoverable costs of $400.5 million for 2025–26, representing a 19% increase on the $337.6 million recovered in 2024–25. The increase reflects additional funding for ASIC’s regulatory, supervisory and enforcement activities, as well as the timing of expenditure.

The CRIS is intended to assist regulated entities with budgeting and planning for future levies and fees. ASIC has emphasised that the figures are estimates only, with final levies to be published in December 2026 and invoiced between January and March 2027. ASIC has also updated the presentation of CRIS information to make levy and cost recovery data easier for industry participants to access and interpret.

Review urges overhaul of Enhanced Regulatory Sandbox

The Assistant Treasurer has released the final report of the independent review of the Enhanced Regulatory Sandbox (ERS), a regime designed to allow eligible businesses to test certain financial products and services without holding an Australian financial services or credit licence. The review examined whether the ERS is effectively supporting financial innovation and the adoption of emerging technologies across Australia’s financial system. It also considered the broader policy settings affecting innovation in financial services. The report makes six recommendations aimed at improving the operation and use of regulatory sandboxes and better enabling financial innovation. The Federal Government is considering the recommendations and has indicated it will finalise its response in the second half of 2026.

Government refreshes expectations for ASIC and APRA

The Federal Government has released new Statements of Expectations for ASIC and the Australian Prudential Regulation Authority (APRA), updating its expectations of how the regulators should achieve their objectives and exercise their powers. A key feature of the revised statements is a stronger emphasis on supporting productivity, investment and economic growth through proportionate, risk-based regulation, while continuing to promote financial stability, market integrity and consumer protection.

For APRA, the Government’s expectations focus on prudential regulation and financial system resilience. The Statement of Expectations highlights APRA’s role in promoting financial system stability, maintaining a proportionate and risk-based prudential framework, supporting competition and innovation, improving superannuation outcomes, addressing insurance affordability issues, strengthening cyber resilience and overseeing the prudent adoption of AI. The Government also expects APRA to contribute to reforms relating to payments and digital assets, minimise unnecessary regulatory burden and maintain transparency regarding future regulatory initiatives. In response, APRA’s Statement of Intent emphasises its ongoing focus on the resilience of the banking, insurance and superannuation sectors, cyber security, climate-related financial risks and the responsible use of emerging technologies.

ASIC’s updated framework reflects its role as Australia’s corporate, markets, financial services and consumer credit regulator. The Government’s Statement of Expectations sets out how ASIC is expected to achieve its objectives and exercise its powers, while ASIC’s Statement of Intent explains how it will implement those expectations through its regulatory, supervisory and enforcement activities. The documents address ASIC’s regulatory responsibilities, the Government’s policy priorities, ASIC’s regulatory approach, stakeholder engagement and organisational arrangements. ASIC has indicated it will report publicly on its progress through its Corporate Plan and Annual Performance Statement.

INSOLVENCY

ASIC publishes first detailed review of voluntary administrations and DOCAs

ASIC has released Report 836, providing the first detailed analysis of how voluntary administrations and deeds of company arrangement (DOCAs) are operating in practice. The review examined 3,528 grouped appointments involving 5,020 companies that entered voluntary administration between 1 July 2021 and 30 June 2025. ASIC found that larger and more complex companies were more likely to achieve a DOCA outcome, with around half of appointments proceeding to a second creditors’ meeting including a DOCA proposal, and 87% of those proposals being accepted by creditors.

The review found that companies with liabilities exceeding $10 million were significantly more likely to enter a DOCA than smaller companies. Nearly half of approved DOCAs involved the business continuing to trade after the deed was executed, while DOCAs were also used to facilitate business or asset sales and compromise creditor claims. ASIC has also published a supporting data pack containing aggregate insolvency data that can be filtered by company size, industry and appointment outcomes, providing stakeholders with greater insight into the operation of Australia’s insolvency system.

INSURANCE

APRA finalises approach to publication of insurance claims and policy data

APRA has released its response to consultation on a proposed non-confidentiality determination for the National Claims and Policies Database (NCPD) and a refreshed publication framework. APRA will proceed with a determination that allows relevant NCPD aggregates to be published in a standardised, downloadable format. The regulator said the changes will not expand the scope of data treated as non-confidential and will maintain existing aggregation levels and confidentiality safeguards.

The updated publication approach includes separate publication of cyber insurance and management liability data, while retaining existing protections against identification of individual insurers. APRA also confirmed plans to improve the usability and timeliness of NCPD statistics and will work with industry on further guidance where required. The first publication under the revised framework will include data reported to 31 December 2024, with 2025 data expected to be released later in 2026.

Consultation on extension of deferred sales model exemptions

The Federal Government has released draft regulations that would extend exemptions from the Deferred Sales Model (DSM) regime for certain classes of add-on insurance products until 5 October 2031. Under the DSM regime, consumers are generally subject to a four-day deferral period before purchasing add-on insurance, allowing time to consider the product and compare alternative options.

The proposed extension would continue existing exemptions for certain insurance products that are considered to provide a high level of consumer value or are mandatory, including comprehensive motor vehicle and vessel insurance, compulsory third party motor vehicle insurance, home and contents insurance, and home building insurance. The current exemptions are due to expire on 5 October 2026. Consultation on the draft regulations closes on 7 August 2026.

PAYMENTS

Proposed framework to support cash distribution network

The Federal Government has introduced the Cash Distribution Framework Bill 2026 (Cth), which would establish a regulatory regime for cash distribution services in Australia. The legislation is intended to support the continued availability of cash as usage declines and the sector becomes more concentrated and costly to operate. The proposed framework would give the ACCC oversight of designated cash distribution services through standard terms and service-level standards, introduce crisis management and continuity powers, and require designated providers to negotiate with customers in good faith.

ACCC extends interim authorisation for commercial cash distribution joint venture

The ACCC has granted a further interim authorisation to allow industry participants to continue taking steps towards establishing a joint venture for the distribution of cash across Australia. The further interim authorisation enables the parties to continue preparatory activities while the ACCC considers the substantive authorisation application. The ACCC said the arrangements are directed towards maintaining the supply and distribution of cash services, including services that support the movement of cash to businesses and ATMs, pending its final determination on the proposed joint venture.

Roundtable sets vision for future of account-to-account payments

The Account-to-Account (A2A) Payments Roundtable, comprising AusPayNet, Australian Payments Plus, the Reserve Bank of Australia and the Treasury, has released a long-term vision for Australia’s A2A payments system. The vision is intended to guide the future development of a payments system that supports consumers, businesses and government agencies, with a focus on resilience, competition, innovation and productivity. It identifies five key outcomes for end-users: that A2A payments are safe, reliable, affordable, easy to use and inclusive. The vision outlines six characteristics that the A2A payments system should demonstrate, including security, resilience, accessibility and appropriate standardisation. The Roundtable will develop an implementation roadmap setting out priority initiatives, governance arrangements and delivery timeframes to support the vision and guide future investment and development across the A2A payments ecosystem.

PRIVACY AND DATA

Government proposes national AI standards and data centre framework

The Federal Government has announced a new AI framework centred on the development of Australian Standards for AI and the establishment of a national regulatory framework for large data centres and AI training activities. The proposed standards would require large data centres to provide their own new power supply, meet connection costs, reduce power consumption when needed to support grid stability, and improve water efficiency. The Federal Government also intends to work with States and Territories on the location of major data centre developments and has established a new Office of AI within the Department of the Prime Minister and Cabinet to oversee implementation. The framework is expected to be considered by National Cabinet in August 2026, with legislation proposed for early 2027.

The announcement also outlines measures to protect Australian creative works in the context of AI development. The Federal Government stated that Australian writers, artists and journalists should retain control over the use of their work and that AI companies should not use Australian creative content for AI training without the creator’s control. The proposed reforms build on the establishment of the AI Safety Institute and are intended to provide a consistent national framework for AI-related investment, infrastructure and regulation.

Non-bank lenders join Consumer Data Right regime

A new phase of Australia’s Consumer Data Right (CDR) regime commenced on 13 July 2026, requiring non-bank lenders to begin sharing product information such as interest rates, fees, charges and eligibility criteria. The expansion extends the CDR, which underpins Australia’s open banking framework, beyond banks and energy providers to the non-bank lending sector. Non-bank lenders captured by the regime include mortgage lenders, car finance providers, personal loan providers and buy now pay later providers.

Consumer data sharing obligations for non-bank lenders will be phased in from 9 November 2026, depending on the size of the provider. The ACCC expects at least 35 new data holders to join the regime as a result of the expansion. Once consumer data sharing commences, consumers will be able to use CDR-enabled services to compare lending products, streamline loan applications and assess whether switching providers may offer better value. More than 1.3 million Australians are currently using the CDR, with participation expected to increase as the regime expands into non-bank lending.

Data breach notifications reach record levels in 2025

The Office of the Australian Information Commissioner (OAIC) has reported a record 1,205 data breach notifications in 2025, the highest annual total since the Notifiable Data Breaches scheme commenced in 2018. The figure represents an 8% increase on 2024. Cyber hacking remained the leading cause of notifications, with most breaches attributed to malicious or criminal activity. Health service providers reported the highest number of breaches, followed by organisations in the financial services, government, business and professional associations, education, and legal, accounting and management services sectors.

In response to the growing volume of notifications, the OAIC has released a new guide to assist organisations in meeting their obligations under the Notifiable Data Breaches scheme. The guide is designed to help entities assess potential breaches, determine whether notification is required, and respond appropriately. The OAIC also noted that concerns about data breaches continue to rise among Australians, with its 2026 Australian Community Attitudes to Privacy Survey identifying data breaches as the public’s leading privacy concern.

OAIC updates facial recognition guidance for retailers

The OAIC has updated its guidance on the use of facial recognition technology in high-volume and publicly accessible retail settings. The revised guidance reflects the Administrative Review Tribunal’s decision against Bunnings Group Limited, which concerned the retailer’s use of facial recognition technology in 62 stores between 2018 and 2021. The Tribunal’s February 2026 decision affirmed aspects of the Privacy Commissioner’s earlier determination and confirmed that a high threshold applies to the use of facial recognition technology under Australian privacy law.

The updated guidance provides further clarification on the application of exceptions to consent requirements when collecting sensitive information, including biometric information, in retail environments. The OAIC noted that retailers will still need to undertake case-by-case assessments of whether proposed deployments comply with the Privacy Act 1988 (Cth).

PRUDENTIAL

APRA finalises reinsurance framework reforms for general insurers

APRA has finalised amendments to its general insurance reinsurance framework. The reforms are intended to improve insurers’ access to alternative reinsurance arrangements while maintaining safeguards for policyholders. The reforms include targeted changes to improve access to alternative reinsurance arrangements, a broader role for appointed actuaries in determining the capital treatment of certain reinsurance arrangements, and a range of technical amendments aimed at improving clarity, consistency and transparency within the prudential framework. The final prudential standards, reporting standards and guidance will take effect from 1 January 2027.

APRA issues guidance on reporting co-located service channels

APRA has published additional guidance for authorised deposit-taking institutions (ADIs) on its points of presence collection, which captures information about the physical presence of banking services. The guidance is intended to clarify how institutions should report co-located face-to-face service channels and support more consistent and comparable reporting across the industry. The regulator has also published accompanying frequently asked questions to assist ADIs with the reporting requirements.

APRA updates guidelines for recognising credit rating providers

APRA has published updated guidelines on the recognition of External Credit Assessment Institutions (ECAIs), whose credit assessments may be used by ADIs and insurers when calculating regulatory capital requirements for rated credit exposures. The guidelines set out APRA’s approach to direct and indirect recognition of ECAIs, including eligibility criteria, application requirements, ongoing review processes and the methodology used to map credit ratings to prudential risk weights.

The guidelines outline the standards APRA expects recognised ECAIs to meet in areas such as objectivity, independence, transparency, disclosure, resources and credibility. They also provide further detail on APRA’s mapping process, including the use of cumulative default rates and other quantitative and qualitative measures to align credit ratings with prudential capital requirements.

APRA consults on technical updates to prudential framework

APRA has commenced consultation on a package of minor updates to its prudential and reporting framework affecting ADIs, general insurers, life insurers, private health insurers and registrable superannuation entity licensees. The proposed changes are primarily technical in nature and are not intended to alter existing policy settings. Submissions on draft standards, draft guidance and consultation materials are due by 21 August 2026.

APRA broadens Banking Act exemption for foreign debt issuers

APRA has finalised minor amendments to instruments relating to section 66 of the Banking Act 1959 (Cth), following consultation with industry. Section 66 restricts the use of certain banking-related terms, including the word “bank” and similar expressions, in the context of a financial business unless APRA has granted consent. The changes update an existing class exemption that permits certain foreign entities to use restricted banking terms when issuing debt securities in Australia’s wholesale capital markets. APRA has broadened the exemption to cover a wider range of foreign entities that commonly seek consent, with the aim of reducing administrative requirements. Apart from this expansion, the exemption remains unchanged.

APRA to remake Level 3 conglomerate prudential standards

APRA has released its response to its consultation on the remaking of three Level 3 conglomerate prudential standards ahead of their scheduled sunset date of 1 October 2026. The regulator confirmed it will remake Prudential Standards 3PS 310 Audit and Related Matters, 3PS 221 Aggregate Risk Exposures and 3PS 222 Intra-group Transactions and Exposures with a limited number of administrative updates. The amendments include updating references and inserting interpretation and previous exercise of discretion provisions, with APRA stating that the changes do not impose any new requirements on conglomerate groups. The remade standards will be finalised before the current instruments sunset on 1 October 2026.

APRA sets deadlines for mandatory APRA Connect reporting

APRA has announced that the Alternate Submission Process will be phased out for ADI reporting collections that have migrated to APRA Connect. Following strong industry uptake of APRA Connect, APRA has confirmed the reporting periods from which APRA Connect submissions will become mandatory. Under the transition timetable, APRA Connect submission will become mandatory for Liquidity 210.5 monthly returns from the reporting period ending 31 July 2026, for Economic and Financial Statistics collections from 31 August 2026, and for most other migrated ADI reporting collections from 30 September 2026. ADIs and registered financial corporations have been encouraged to review their reporting processes and ensure they are prepared to submit through APRA Connect by the relevant dates.

SUPERANNUATION

APRA consults on transition of superannuation data collections

APRA has commenced consultation on proposed amendments to its superannuation data collections as part of the transition from its Direct to APRA (reporting platform to APRA Connect. The consultation package includes proposed updates to reporting standards associated with the migration of superannuation data collections to APRA’s newer reporting system. The proposals would update Reporting Standards SRS 533.0 Asset Allocation and SRS 610.2 Membership Profile, revise associated definitions in Reporting Standard SRS 101.0, and revoke SRS 001.0 Profile and Structure (Baseline). APRA said the changes are intended to support the transition to APRA Connect while removing data items that are duplicated elsewhere or no longer required.

Under the proposals, a number of data fields in SRS 533.0 and SRS 610.2 would be removed where equivalent information is already reported through other standards, while selected data used for APRA publications and the MySuper performance test would be retained. APRA also proposes to cease collecting information currently reported under SRS 001.0, with relevant information instead sourced from other APRA Connect reporting standards. Consultation closes on 21 August 2026. APRA expects the updated collections to become available in the APRA Connect test environment in November 2026, with the first reporting period commencing in December 2026.

ASIC steps up enforcement action against SMSF auditors

ASIC has taken administrative action against 36 approved self-managed superannuation fund (SMSF) auditors between January and June 2026, bringing its total actions against SMSF auditors in the 2025–26 financial year to 64. The regulator said the actions addressed breaches including failures to maintain independence, non-compliance with auditing and assurance standards, continuing professional development deficiencies, failure to maintain practical experience, annual statement non-lodgement and concerns about whether individuals remained fit and proper persons to act as SMSF auditors.

During the first half of 2026, ASIC disqualified four SMSF auditors, suspended three, imposed additional conditions on eight registrations and cancelled the registration of 21 auditors. Across the full 2025–26 financial year, ASIC’s actions resulted in eight disqualifications, three suspensions, 10 auditors being subject to additional conditions and 43 registration cancellations.

ACCC proposes superannuation industry information-sharing authorisation

The ACCC has issued a draft determination proposing to authorise arrangements that would allow participants in the superannuation industry to share information relating to financial crime and cyber security threats. The proposed authorisation would enable superannuation funds and other industry participants to exchange information aimed at preventing, detecting and responding to fraud, scams, cyber incidents and other criminal activity affecting the sector. The draft determination is subject to consultation before the ACCC makes a final decision on whether to grant authorisation for the information-sharing arrangements. Submissions on the draft determination close on 10 August 2026.

TAXATION

Consultation on implementation of discretionary trust tax reforms

The Federal Government has released a consultation paper on the implementation of its proposed minimum tax on discretionary trusts. Under the proposal, trustees of discretionary trusts would pay a minimum tax of 30 per cent on trust taxable income from 1 July 2028. Exemptions are proposed for a range of trust structures, including fixed trusts, widely held trusts, complying superannuation funds, charitable trusts and deceased estates, as well as certain categories of income.

AML/CTF

Expanded AML/CTF reporting regime commences

The expanded anti-money laundering and counter-terrorism financing (AML/CTF) regime commenced on 1 July 2026, bringing thousands of additional businesses within the jurisdictional scope of the Australian Transaction Reports and Analysis Centre (AUSTRAC). Newly regulated sectors include real estate, conveyancing, legal services, accounting, and dealers in precious stones and metals. Businesses captured by the reforms are now required to implement AML/CTF programs, conduct customer due diligence, report suspicious matters and maintain relevant records.

Newly regulated entities were required to enrol by 29 July 2026. While most businesses are only required to enrol, providers of remittance and virtual asset designated services must also apply for registration. AUSTRAC has also released updated threshold transaction report and suspicious matter report forms through AUSTRAC Online, reflecting the transition to the new reporting framework.

AUSTRAC has also published new guidance outlining the key steps and support available to newly regulated entities. The guidance explains the steps businesses should take to meet their AML/CTF obligations, including enrolling with AUSTRAC, developing AML/CTF programs, conducting customer due diligence, reporting suspicious matters and maintaining appropriate records. AUSTRAC has also highlighted the range of educational resources and support available to assist newly regulated entities in understanding and complying with the regime.

DISPUTES AND ENFORCEMENT

ASIC reports record enforcement outcomes for 2025–26

ASIC has reported record enforcement outcomes for the 2025–26 financial year, with courts imposing $830 million in civil penalties and $643.5 million being returned to consumers and investors through remediation programs, refunds and other payments connected to ASIC’s regulatory work. During the year, ASIC commenced more than 250 investigations, filed 32 civil proceedings, commenced 18 criminal prosecutions and secured 25 criminal convictions, including 21 custodial sentences. Major penalties were imposed against a range of financial institutions and market participants, including Union Standard International Group, HSBC, Westpac, Macquarie Securities, Mercer Super and Walker Stores (Snaffle).

ASIC highlighted enforcement action relating to misconduct involving contracts for difference, scam protection failures, hardship processes, market reporting failures, unlawful credit practices and breach reporting obligations. The regulator also reported significant criminal outcomes during the year, including custodial sentences for offences involving insider trading, fraud and dishonesty. ASIC said remediation programs linked to its regulatory activities have resulted in substantial payments being made to affected consumers and investors.

AFCA opens membership applications under Scams Prevention Framework

Applications have opened for organisations required to become AFCA members under the Australian Government’s Scams Prevention Framework (SPF). From 1 July 2026, organisations that provide or operate a regulated service within a designated SPF sector can apply for membership, with mandatory AFCA membership required from 1 September 2026. The requirement may apply to organisations in the telecommunications and digital platform sectors, bringing those sectors within scope of the SPF external dispute resolution framework.

AFCA has encouraged affected organisations to submit applications by 14 August 2026 to support onboarding ahead of commencement. AFCA noted that the commencement of the membership process coincides with other anti-scam initiatives, including the introduction of the Australian Communications and Media Authority’s SMS Sender ID Register, as part of broader efforts to strengthen protections against scams.

AFCA issues guidance on life insurance contract variation disputes

AFCA has published two new External Dispute Resolution (EDR) Response Guides addressing complaints involving sections 29(6) and 29(7) of the Insurance Contracts Act 1984 (Cth). The guides relate to disputes about the variation of life insurance contracts following a misrepresentation, including situations where cover is retrospectively altered, for example due to an undisclosed pre-existing condition. Separate guides have been issued for the life insurance and superannuation sectors, reflecting that complaints of this type may arise in both contexts.

AFCA said it has seen an increase in complaints concerning whether insurers and superannuation trustees have complied with the statutory requirements governing contract variations. The guides outline the information and evidence AFCA expects firms to provide when responding to these complaints, including evidence that other insurers or trustees would have varied the contract in a similar manner and relevant underwriting guidelines from the period the contract was entered into.

ASIC stops distribution of two fixed income fund products over DDO concerns

ASIC has issued interim stop orders against two products offered under Stratfund Limited’s (Stratfund) Australian Fixed Income Fund following concerns about deficiencies in their target market determinations (TMDs). The orders apply to the Wealthon Vault Development Fund and The People’s Equity Fund and prevent Stratfund from issuing disclosure documents, dealing in the products, or providing general advice recommending them to retail clients for 21 days. ASIC said the TMDs appeared to identify target investors whose objectives and liquidity needs were inconsistent with the products’ features, including investors seeking capital preservation, income distributions, or regular access to funds despite minimum holding periods and restricted withdrawal rights.

ASX fined $20.5 million over CHESS replacement disclosures

The Federal Court has ordered ASX Limited (ASX) to pay a $20.5 million penalty after it admitted that a February 2022 market announcement stating its CHESS replacement project was “progressing well” was misleading. The Court found the announcement gave the market an inaccurate impression of the project's status, despite significant issues affecting its progress. ASX was also ordered to pay $3 million towards ASIC’s legal costs.

The CHESS replacement project was intended to replace ASX’s existing clearing and settlement system with a platform based on distributed ledger technology. Around six weeks after the announcement, ASX disclosed that the project was likely to be delayed. The project was subsequently paused in November 2022, resulting in the derecognition of approximately $245 million to $255 million in project costs. ASX later adopted a revised replacement strategy, with the first release commencing operation in April 2026.

Deutsche Bank pays $2 million penalty for trade reporting failures

Deutsche Bank Aktiengesellschaft (Deutsche Bank) has paid a $2 million penalty after ASIC issued an infringement notice relating to the misreporting of more than 260,000 over-the-counter derivative transactions between October 2024 and August 2025. ASIC alleged that the bank failed to take all reasonable steps to ensure the accuracy of mandatory “direction” fields, which identify whether a reporting entity is acting as the effective buyer or seller in a transaction. The reporting failures affected more than 20,000 outstanding transactions and more than 244,000 terminated or matured transactions across 208 business days.

ASIC said the failures were systemic and indicated deficiencies in Deutsche Bank’s internal reporting framework. The reported transactions related to foreign exchange and commodities derivatives, with the data forming part of the information regulators use to monitor financial markets, systemic risk and potential market abuse. Deutsche Bank has cooperated with ASIC’s investigation, paid the penalty and is implementing remediation measures.

NAB’s WealthHub fined $1.055 million for market reporting failures

WealthHub Securities Limited (WealthHub), an online broker owned by National Australia Bank, has been fined $1.055 million by ASIC’s Markets Disciplinary Panel (MDP) for failures to accurately report regulatory data more than 9.5 million times over a 10-year period. ASIC found that between July 2014 and October 2024, WealthHub failed to provide complete and accurate regulatory data and did not maintain the organisational and technical resources necessary to meet its reporting obligations.

The failures related primarily to the reporting of Intermediary IDs in orders and trade reports submitted to market operators, including ASX. ASIC said inaccurate or missing Intermediary ID information can undermine market surveillance and affect the calculation of industry funding levies. The MDP found that WealthHub failed to maintain adequate systems, expertise and oversight to identify and address the reporting issues, and delayed reporting the matter to ASIC until January 2023.

Harvey Norman and Latitude fined $55 million over interest-free advertising campaign

The Federal Court has ordered Harvey Norman Holdings Ltd (Harvey Norman) and Latitude Finance Australia (Latitude) to pay penalties of $35 million and $20 million respectively for misleading conduct and false or misleading representations in a national advertising campaign promoting a 60-month interest free payment offer. The campaign ran between January 2020 and August 2021 across television, radio and print media. The Court found that the advertising failed to adequately disclose that consumers were required to obtain a credit card, such as the Latitude GO Mastercard, and would incur ongoing account service fees and, for part of the period, establishment fees.

The Court also ordered both companies to publish corrective advertising on their website home pages for 90 days. The proceedings arose from ASIC action commenced in 2022, with findings of liability made in 2024 and appeals dismissed in 2025. ASIC alleged that the campaign gave consumers an incomplete picture of the nature and cost of the promoted finance arrangement. The Court observed that the compliance processes of both companies were inadequate and found that Harvey Norman and Latitude were equally responsible for the contravening advertisements.

ASIC sues auditors over alleged First Guardian audit failures

ASIC has commenced Federal Court proceedings against Auditeo Australia Pty Ltd (Auditeo) and two auditors, Ajm Didarul Islam Khan and Brian Robert Taylor, alleging serious audit failures in relation to the First Guardian Master Fund (First Guardian). ASIC claims that unqualified audit reports issued for First Guardian and its compliance plan between the 2020 and 2024 financial years were false or misleading because there was no reasonable basis for the audit opinions expressed and significant audit work required under applicable auditing standards was not performed.

ASIC alleges the auditors failed to obtain sufficient and appropriate audit evidence and did not conduct the audits with due care and skill. The alleged deficiencies included the absence of evidence that any financial audit was conducted for the 2021 financial year, the failure to test substantial portions of reported assets in 2022 and 2023, and failures relating to compliance plan audits. ASIC is seeking declarations, civil penalties, injunctions and other orders against the defendants.

AUSTRAC enforceable undertakings with betting apps

AUSTRAC has finalised the enforceable undertaking it accepted from Sportsbet Pty Ltd (Sportsbet) in May 2024 after concluding that the company had addressed deficiencies in its AML/CTF controls. The undertaking followed concerns identified by AUSTRAC regarding Sportsbet’s AML/CTF compliance, including its approach to risk assessment, customer monitoring and suspicious matter reporting as part of AUSTRAC’s review of the corporate bookmaker sector.

Under the undertaking, Sportsbet was required to remediate five key areas of its AML/CTF policies and processes. AUSTRAC said independent assurance provided by an external auditor confirmed that the required remediation had been implemented and operationalised. The regulator also noted that it will continue to monitor businesses in the gambling sector, which it considers exposed to elevated money laundering risks, particularly in online environments.

AUSTRAC has also entered into a legally binding enforceable undertaking with online bookmaker Hillside (Australia New Media) Pty Limited trading as bet365 (bet365) following concerns about weaknesses in its AML/CTF controls. The action followed an AUSTRAC investigation triggered by an independent audit of bet365’s operations, which identified deficiencies in the company’s management of money laundering risks and its approach to suspicious matter reporting. Under the undertaking, bet365 must strengthen its AML/CTF framework, including by implementing a more robust and ongoing risk assessment process and improving its systems for detecting and reporting suspicious transactions as risks evolve.

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