Financial Services and Credit Monthly Update June 2025

CONSUMER CREDIT

BNPL regulation in effect

On 10 June 2025, buy now pay later (BNPL) credit became regulated under the National Credit Code following the introduction of the Treasury Law Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024 (Cth). The amendments to the credit legislation to regulate BNPL credit are supported by the National Consumer Credit Protection Amendment (Low Cost Credit) Regulations 2025 (Cth), which also came into effect on 10 June 2025. Check out our “Regulation of Buy Now Pay Later” article for more information.

ASIC review highlights compliance failures in consumer lease sector

A recent review by the Australian Securities and Investments Commission (ASIC) of the consumer lease industry has uncovered significant compliance failures, despite recent reforms aimed at protecting consumers. The review found that nearly 25% of consumer leases are in arrears, highlighting the financial vulnerability of many Australians reliant on these arrangements. Additionally, 80% of repayments to consumer lease providers are made via Centrepay deductions. The review also revealed inconsistent practices among providers, including breaches of cost caps and inadequate suitability assessments. Several providers have exited the market following the recent reforms, while others have shifted to alternative credit products, raising further consumer protection concerns.

ASIC targets predatory lending amid economic hardship

ASIC Commissioner Alan Kirkland addressed the Australian Finance Industry Association Risk Summit on 17 June 2025, highlighting ongoing concerns about predatory lending practices. Despite easing inflation, cost-of-living pressures persist, making vulnerable consumers prime targets for unscrupulous lenders. ASIC's Corporate Plan and 2025 enforcement priorities focus on predatory lending, including business models that circumvent consumer credit protections and exploit vulnerable consumers, particularly in used car finance.

Recent reviews have exposed a number of credit providers entering into unsuitable contracts or failing to identify an appropriate target market for their product distributions, with some suspected of attempting to circumvent additional small amount credit contract obligations. ASIC is also scrutinising motor vehicle finance practices affecting vulnerable consumers, including First Nations consumers in regional areas, with enforcement actions underway against several entities for unlicensed lending and responsible lending breaches.

CONSUMER PROTECTION

National Anti-Scam Centre urges business collaboration

The National Anti-Scam Centre (NASC) has urged businesses to enhance their role in combating scams including through data sharing with the NASC, following a report of nearly $119 million in scam-related losses in the first four months of 2025. Despite a 24% drop in overall scam reports, financial losses surged by 28% compared to the same period last year. Phishing scams saw a notable increase, with losses rising to $13.7 million from $4.6 million in early 2024. Social media scams also escalated, with a 50% rise in the number of reports to 3,336 and a 30% rise in reported financial losses, totalling $23.4 million. Phone scams, while declining in reports, still accounted for the highest financial losses at $25.8 million in the first four months of 2025.

Mable amends unfair contract terms

Mable Technologies Pty Ltd (Mable) has admitted to breaching the Australian Consumer Law (ACL) by using unfair contract terms in its platform connecting care seekers with support workers. The terms which were in place between November 2023 and August 2024 included a $5,000 minimum penalty fee for support workers continuing care arrangements outside the platform and automatic approval of service logs without client opt-out rights or rights to dispute an invoice. Mable has cooperated with the Australian Competition and Consumer Commission (ACCC), amended its terms, and offered a court-enforceable undertaking to address these issues. The undertaking prohibits certain terms and mandates clear communication of significant terms to clients and support workers. Mable is also required to establish and maintain an ACL compliance program under the undertaking.

ACCC reviews unsolicited selling practices

The ACCC has initiated a review into unsolicited selling and lead generation practices, prompted by a designated complaint from the Consumer Action Law Centre. The review will examine door-to-door selling, cold calling, and social media advertising, with a focus on consumer experiences, sales structures and the application of the ACL. The ACCC is seeking feedback on the benefits and detriments of these practices, with consultation open until 31 July 2025. The review aims to determine if further action is needed to protect consumers from potential financial harm.

ASIC updates guidance on share sale fraud

ASIC has updated its guidance for Australian financial services (AFS) licensees on preventing share sale fraud, following a sharp rise in incidents linked to identity theft. The revised Information Sheet 237 (INFO 237) reflects findings from an ASIC-led review of licensees’ client onboarding and fraud detection practices.

Share sale fraud involves unauthorised sales or transfers of shares by individuals impersonating legitimate holders. ASIC reports a seven-fold increase in such cases over the past four years, with some victims losing entire portfolios.

The updated guidance outlines better practices, including verifying client identity documents, monitoring for unusual trading behaviour, and conducting enhanced due diligence when clients change personal or banking details. ASIC also encourages the use of accredited digital ID services under the Digital ID Act 2024 (Cth).

COMPETITION

Regulatory reform in digital platform markets needed

The ACCC has released the final report of its inquiry into digital platform services, highlighting the need for regulatory reform to address competition and consumer harms in digital markets. The report, concluding a five-year inquiry, identifies ongoing risks such as manipulative design practices and unfair trading tactics, with 72% of surveyed consumers encountering potentially unfair practices online and 82% agreeing that a specialised independent external dispute resolution body is needed for the markets. Key recommendations include the establishment of an economy-wide unfair trading practices prohibition, an external dispute resolution body for digital platform services, and a new digital competition regime.

ACCC authorises industry collaboration to sustain cash services

On 25 June 2025, the ACCC granted conditional authorisation to the Australian Banking Association (ABA), major banks, retailers, Australia Post and others to collaborate on the sustainability of cash-in-transit (CIT) services. The authorisation permits financial support to Linfox Armaguard Pty Ltd (Armaguard), Australia’s dominant CIT provider, and allows parties to discuss and implement operational efficiency measures.

The authorisation also permits development (but not implementation) of an independent pricing mechanism for CIT services. Implementation would require a separate application. Six conditions apply to the authorisation, including mandatory reporting to the ACCC, the Reserve Bank of Australia (RBA) and Treasury, and consultation with stakeholders such as the Customer Owned Banking Association, smaller ABA members and regional representatives. The current authorisation runs until 30 June 2026.

CORPORATE

ASIC seeks feedback on regulation of employee redundancy funds

ASIC has released Consultation Paper 384 (CP 384) to seek feedback on the future regulation of employee redundancy funds under the Corporations Act 2001 (Cth) (Corporations Act) following the expiry of the transitional relief granted to these funds on 1 April 2026. Given the significant growth in funds under management and the expanded activities of fund operators, ASIC is reassessing the regulatory requirements. CP 384 proposes three options: allowing the relief to expire, granting relief from specific obligations, or remaking the existing relief with additional conditions. ASIC aims to finalise its approach by late 2025. Submissions can be made until 22 July 2025.

ASIC updates guidance for managed investment schemes

ASIC has issued revised versions of Regulatory Guide 132 Funds management: Compliance and oversight (RG 132) and Regulatory Guide 136 Funds management: Discretionary powers (RG 136), both relevant to managed investment schemes (MIS). The updates are minor and technical, reflecting legislative changes and relief granted since the last substantive revisions—June 2022 for RG 132 and July 2018 for RG 136. However, the revisions do not change legal requirements or impose additional regulatory burdens on MIS.

RG 132 now references the updated Australian Standard AS ISO 37301:2023 for compliance management systems, replacing the 2015 version. The new standard maintains similar requirements but offers refined guidance.

RG 136 incorporates recent Corporations Act amendments allowing scheme meetings to be held virtually or in hybrid format. Other changes include updated definitions, removal of outdated class order references, and clearer language around related schemes.

FINANCIAL ADVICE

ASIC urges AFS licensees to correct Financial Advisers Register

On 3 June 2025, ASIC renewed its warning to AFS licensees regarding the accuracy of their information on the Financial Advisers Register. ASIC's latest spot check revealed ongoing errors and inconsistencies, including incorrect declarations of eligibility for the experienced provider pathway and inaccurate qualification records. With the 1 January 2026 deadline approaching for relevant providers to meet the qualifications standard, ASIC emphasised the importance of accurate record-keeping. AFS licensees are urged to review and correct details such as qualifications, authorisation history, and contact information. Failure to provide true and correct information or to update the register within 30 business days of changes is a serious offence. ASIC will continue monitoring the register and may consider further regulatory responses if required.

ASIC grants limited no-action position for deficient advice fee consents

On 6 June 2025, ASIC announced a limited no-action position concerning deficient advice fee written consents. This position addresses issues raised by the advice industry regarding the inclusion of account numbers in client consents for ongoing fee arrangements (OFAs). ASIC will not take action for breaches of section 962S of the Corporations Act and section 99FA of the Superannuation Industry (Supervision) Act 1993 (Cth), provided certain conditions are met. These include obtaining new written consents that comply with all requirements by 5 September 2025. In order to rely on the no-action position, an AFS licensee must enter into a new OFA with the client with a new compliant written consent for deduction of ongoing fees (including to cover the period under a non-compliant written consent). Superannuation trustees are advised to review their processes to ensure compliance. This no-action position does not prevent third parties from pursuing legal action.

ASIC highlights risks in financial advice sector

ASIC Commissioner Alan Kirkland addressed the Professional Planner Licensee Summit on 23 June 2025, underscoring key regulatory priorities in the financial advice sector. ASIC has identified high-pressure sales tactics as a significant risk, where consumers are lured into unsuitable investments through misleading advertisements and aggressive telemarketing.

ASIC's enforcement priorities for 2025 include tackling such misconduct, with ongoing investigations and court actions aimed at preserving investor assets. Mr Kirkland also emphasised the looming deadline for financial advisers to meet qualifications standards by 1 January 2026.

Additionally, ASIC is reviewing offshore outsourcing practices including in financial planning administration and paraplanning services, focusing on risks related to data protection and consumer trust. Licensees were reminded to ensure compliance with regulatory obligations, regardless of whether functions are conducted locally or overseas.

FINANCIAL MARKETS

ASIC releases feedback on public and private market dynamics

On 4 June 2025, ASIC published over 50 public submissions in response to its discussion paper published in February 2025 on the evolving dynamics between public and private markets. The paper highlighted the growth of private markets, the decline in public listings, and the increasing role of superannuation funds. ASIC received nearly 90 submissions, reflecting positive feedback from industry bodies, market operators, superannuation trustees, and fund managers. ASIC has categorised the feedback into key themes including the need for public market adjustments to enhance attractiveness, the sustainable growth of private markets, structural and cyclical factors shaping both markets, and the importance of superannuation in investment. ASIC plans to announce actionable ideas and roadmaps for public and private markets in the third and fourth quarters of 2025, respectively. 

ASIC symposium on market dynamics and future of private markets

On 10 June 2025, ASIC held a symposium at the University of Technology Sydney, focusing on the state of Australia's public and private markets. Key discussions revolved around the intensifying global competition for capital, the impact of regulatory burdens, and the rise of private capital. The symposium discussed the importance of balancing regulatory oversight with market innovation to ensure efficient capital allocation and long-term value creation.

Trial for streamlined IPO process

On 10 June 2025, ASIC announced a two-year trial aimed at expediting the initial public offering (IPO) process for entities listing on the Australian Stock Exchange (ASX). The trial introduces a shorter IPO timetable, reducing deal execution risk by allowing informal review of offer documents two weeks prior to public lodgement. This change could shorten the IPO timeline by up to a week. Additionally, ASIC's new 'no action' position permits eligible companies to accept retail investor applications during the public exposure period, streamlining administrative procedures. The initiative responds to the decline in Australian IPOs and aims to enhance the attractiveness of public markets. ASIC will monitor the trial's effectiveness and may adjust the regulatory framework accordingly. The trial is available to entities with a market capitalisation exceeding $100 million and no ASX-imposed escrow.

FINANCIAL SERVICES

ASIC identifies major compliance failures in managed investment sector

ASIC has uncovered significant deficiencies in compliance plans across the managed investment industry. A recent review of 50 compliance plans, covering nearly $1 trillion in managed investments, revealed widespread inadequacies in addressing key regulatory requirements. The plans, used by responsible entities (REs) for 1,471 funds, often failed to meet obligations under the design and distribution obligations (DDO), internal dispute resolution, and reportable situations regimes. Notably, some plans lacked any reference to DDO, indicating they had not been updated since 2021. ASIC has urged REs to rectify these gaps promptly and has initiated investigations into potential legal breaches.

ASIC provides targeted relief under reportable situations regime

On 27 June 2025, ASIC announced additional relief for AFS and Australian credit licensees under the reportable situations regime. The new measures exempt licensees from having to report certain breaches of misleading and deceptive conduct provisions and certain contraventions of civil penalty provisions where:

• the breach has been completely rectified within 60 days from when it first occurred (this includes paying any necessary remediation);

• the number of impacted consumers does not exceed 10;

• total loss across all impacted consumers (including where the loss has been remedied) does not exceed $1,000; and

• the breach is not a contravention of the client money reporting rules and clearing and settlement rules.

Additionally, an investigation will only be reportable to ASIC if it continues for more than 60 days (rather than 30 days as provided in the legislation). ASIC also clarified that a breach report submitted to the Australian Prudential Regulation Authority (APRA) in the form required by APRA is also taken to be lodged with ASIC. These changes aim to reduce the reporting burden on industry while maintaining the regime's objectives.

FINANCIAL SYSTEM

APRA consults on minor changes to section 66 Banking Act instruments

On 18 June 2025, APRA released a set of minor proposals for instruments under section 66 of the Banking Act 1959 (Cth), which restricts the use of certain words like "bank" and words of like import without APRA's consent. The consultation addresses exemptions and determinations due to sunset or requiring updates to reflect current practices. Submissions are open until 15 August 2025.

RBA consults on Clearing and Settlement Facility Resolution Regime guidance

The RBA has released a consultation paper outlining proposed guidance on its new crisis resolution powers over domestic clearing and settlement (CS) facilities. These powers were introduced by the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024 (Cth), which amended the Corporations Act.

The guidance sets out how the RBA may exercise its powers in the event of a threat to the continuity of critical CS services or broader financial stability. It aims to clarify the RBA’s expected approach to resolution, including potential implications for CS facility participants, users, and market operators. The consultation is open until 11 August 2025.

INSOLVENCY

Small Business Restructuring Uptake Surges

ASIC has released Report 810 of its review of the small business restructuring (SBR) process from July 2022 to December 2024, revealing a sharp rise in uptake. During the review period, 3,388 SBR appointments commenced which marked an increase from just 82 in the prior period between January 2021 and June 2022 covered by Report 756. The number of appointments has grown annually, with 2024–25 expected to reach around 3,000. Of the 3,388 appointments, 2,820 transitioned into formal restructuring plans, while most of the remainder were terminated following creditor rejection. Construction and accommodation and food services industries accounted for half of all appointments.

The SBR regime, introduced in 2021, allows directors of insolvent small companies to restructure debts while retaining control. ASIC found no evidence of widespread misuse and reported over $101 million in dividends paid to unsecured creditors, with the ATO receiving 87% of that amount.

INSURANCE

ASIC and APRA review life insurance premium practices

On 5 June 2025, ASIC and APRA released an update on their review of life insurance premium practices. The review, first initiated in December 2022 and conducted again in December 2023, addresses concerns over frequent, large, and unexpected premium increases that may not align with policy terms or meet reasonable policyholder expectations. The latest findings indicate improvements in re-rating practices, marketing, and disclosure materials, as well as product governance. However, efforts to mitigate premium volatility through product design are still in early stages. The regulators will continue to engage with life insurers to ensure further progress. 

ASIC calls for improved oversight in home insurance claims

On 5 June 2025, ASIC released findings from its recent review of home insurance claims handling. The review assessed how insurers addressed areas for improvement identified in ASIC's REP 768 report published in August 2023. While insurers have enhanced oversight of builders and repairers, ASIC found significant gaps in the oversight of independent experts. Insurers often relied on claims-handling staff without the necessary expertise to identify errors in expert reports. Additionally, ASIC highlighted deficiencies in consumer communication regarding cash settlements, noting that many fact sheets provided minimal information on review rights and processes. The review also identified ongoing issues with resourcing, customer communications, and the identification of vulnerable customers. ASIC expects insurers to address these findings proactively and improve their claims handling programs.

PRUDENTIAL

APRA updates licensing FAQs

On 2 June 2025, APRA published minor amendments to its frequently asked questions (FAQs) for the APRA’s licence application process. These updates incorporate changes from the introduction of the Financial Accountability Regime (FAR) and remove duplicated commentary found in APRA's information paper for proposed new authorised deposit-taking institutions, "ADIs: New entrants – a pathway to sustainability."

Proposed changes to capital framework for annuity products

On 12 June 2025, APRA released a consultation paper proposing modifications to the capital framework for annuity products. The suggested changes aim to reduce capital requirements for annuities, contingent on enhanced risk management by life insurers. The proposals include closer matching of assets and liabilities, potentially allowing insurers to offer more competitively priced annuity products without increasing risks to policyholders. The proposals follow industry calls for alignment with international standards, fostering a more favourable environment for annuity products in Australia. The consultation closes on 25 July 2025.

APRA finalises changes to HELP debt treatment for home loans

On 19 June 2025, APRA announced finalised changes to how authorised deposit-taking institutions (ADIs) should treat Higher Education Loan Program (HELP) debt repayments when assessing home loan applications. The revisions aim to clarify the treatment of HELP debt obligations, ensuring a more consistent approach across the industry.

APRA has published the finalised reporting standard, Reporting Standard ARS 223.0 Residential Mortgage Lending, together with the revised prudential practice guide, Prudential Practice Guide APG 223 Residential Mortgage Lending, to provide detailed guidance on the new requirements, which are expected to impact the assessment criteria used by ADIs. 

Release of CPS 230 notification forms

On 27 June 2025, APRA introduced new electronic forms to comply with the notification requirements of Prudential Standard CPS 230 on Operational Risk Management (CPS 230). These forms are designed for entities to report operational risk incidents, breaches of critical operation tolerance, and changes to material arrangements or offshoring activities. The forms aim to streamline the reporting process for financial institutions. CPS 230 commences on 1 July 2025.

PRIVACY AND DATA

Ransomware payment report

The Department of Home Affairs has published a guide on how to make a ransomware payment report. The mandatory ransomware payment reporting requirement under the Cyber Security Act 2024 (Cth) applies to entities with an annual turnover exceeding $3 million, critical infrastructure providers, and third parties acting on their behalf. The ransomware or cyber extortion payments must be reported within 72 hours. The ransomware payment reporting form can be accessed here.

New statutory tort for serious invasion of privacy

On 10 June 2025, a new statutory tort for serious invasions of privacy came into effect under Schedule 2 of the Privacy Act 1988 (Cth). The new provisions provide individuals with a cause of action against another person for intentionally or recklessly intruding upon the individual’s seclusion or misusing information that relates to the individual. There are exemptions under the new tort for journalists, government agencies and persons under the age of 18.

SUPERANNUATION

APRA reinforces authentication controls in superannuation sector

On 10 June 2025, APRA issued a directive to all Registrable Superannuation Entity (RSE) licensee board chairs, emphasising expectations regarding information security and the need for robust authentication controls. This follows recent credential stuffing attacks that exposed vulnerabilities in the superannuation industry's authentication practices. APRA reminded entities of their obligations under Prudential Standard CPS 234 Information Security (CPS 234) and outlined specific actions to enhance security. These include conducting a self-assessment of information security controls, implementing multi-factor authentication for high-risk activities, and notifying APRA of any material control weaknesses. Additionally, entities must identify their Accountable Person(s) under the FAR who are responsible for CPS 234 compliance.

ASIC urges super trustees to improve complaint handling

On 12 June 2025, ASIC Chair Joe Longo delivered an address at the AmCham Regulator Luncheon Series, highlighting critical shortcomings in the superannuation sector. Mr Longo emphasised the need for super trustees to enhance their complaint handling processes, citing ASIC's findings that many trustees fail to monitor or report on the duration of death benefit claims. The review revealed that some claims remain unresolved for months or even years, with trustees lacking performance objectives for handling these claims.

ASIC's next phase of work will focus on how trustees learn from and respond to complaints. Mr Longo emphasised the requirement for trustees to have robust arrangement to oversee their complaint-handling process so that complaint data can be interrogated and systemic issues can be addressed. Mr Longo also reminded trustees of their obligation to act efficiently, honestly, and fairly, and that ASIC will pursue enforcement action where necessary to ensure compliance with these obligations.

APRA flags gaps in super fund spending oversight

On 24 June 2025, APRA issued a letter to RSE licensees outlining initial findings from its review of expenditure practices under the best financial interests duty (BFID). The review focused on 14 licensees with comparatively high or opaque spending, examining thousands of documents related to discretionary, marketing, and related-party expenditure.

APRA identified shortcomings in decision-making rigour, governance, and the use of member-focused metrics. Some funds lacked standardised processes when entering into agreements or failed to reassess legacy contracts post-BFID commencement. Others relied heavily on peer activity or third-party reporting without verifying against the RSE licensee’s own measures.

APRA expects RSE licensees to implement a robust decision-making approach with clear links to strategic objectives and expected financial outcomes for members and a comprehensive expenditure management framework. Licensees are also expected to conduct periodic monitoring which utilises member outcomes focused metrics to measure performance of financial outcomes to members, and to use data regarding member impact to justify reporting. APRA also urges licensees to align with updated Prudential Standard SPS 515: Strategic Planning and Member Outcomes and its practice guide SPG 515, including obtaining senior executive attestations on expenditure management.

APRA publishes first retirement product performance data

On 26 June 2025, APRA released its inaugural dataset on superannuation retirement products. The publication covers performance data for 600 multi-sector investment options where trustees either set the investment strategy or manage the investments directly. The dataset includes detailed breakdowns of product fee structures, investment strategies, and strategic asset allocations. This release is part of APRA’s broader effort to enhance its superannuation publications and provide greater visibility into the retirement phase of superannuation. Further analysis and insights are expected in the 2026 Comprehensive Product Performance Package, which will consider the unique features and contexts of retirement products.

AML/CTF

AML/CTF reforms key dates and guidance

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has amended timeframes for updates to the anti-money laundering and counter-terrorism financing (AML/CTF) regime. Key dates include:

• targeted consultations on draft core guidance from May to July 2025;

• finalisation of core guidance expected by October 2025;

• consultations on tranche 2 sector-specific guidance from October until November 2025;

• release of final tranche 2 guidance in December 2025;

• further changes to obligations for current reporting entities and virtual asset service providers from 31 March 2026; and

• AML/CTF obligations for tranche 2 entities commencing on 1 July 2026.

AUSTRAC is also developing educational materials and starter program kits for small businesses in tranche 2 sectors.

TAXATION

Giving fund reforms

The Treasury has commenced consultation on proposed reforms to giving funds, currently known as ancillary funds under tax law. The consultation, open from 10 June to 1 August 2025, seeks feedback on several key changes, including:

• aligning the annual distribution rate between public and private giving funds;

• increasing the annual distribution rate;

• smoothing distributions across years; and

• renaming ancillary funds as giving funds in the tax law.

DISPUTES AND ENFORCEMENT

ASIC sues Choosi for misleading insurance comparisons

ASIC has initiated legal proceedings against Choosi Pty Ltd (Choosi), an insurance comparison provider, for allegedly misleading prospective customers. ASIC claims Choosi falsely represented that it compared funeral and life insurance products from various insurers. In reality, Choosi allegedly only compared policies from a single insurer, Greenstone Financial Services Pty Ltd – a company associated with Choosi, with one minor exception. This practice allegedly misled thousands of consumers, resulting in the sale of over 13,700 insurance policies and earning Choosi $61 million in commissions.

ASIC sues RAMS for systemic misconduct in home loan arrangements

ASIC has commenced civil penalty proceedings against RAMS Financial Group Pty Ltd (RAMS) in the Federal Court. ASIC alleges that RAMS, a subsidiary of Westpac Banking Corporation, engaged in systemic misconduct in arranging home loans between June 2019 and April 2023. ASIC claims RAMS breached its obligations as an Australian Credit Licensee by conducting business with unlicensed persons, failing to supervise its representatives, and lacking adequate policies and procedures. These failures allegedly led to widespread misconduct by RAMS franchisees, including the submission of false pay slips and the creation of fake contracts of sale. RAMS has admitted liability and has remediated affected customers. ASIC is seeking declarations and pecuniary penalties against RAMS. 

AUSTRAC targets crypto ATM operations

On 3 June 2025, AUSTRAC announced new conditions for Australian crypto ATM operators following a taskforce investigation into compliance issues. The taskforce identified significant misuse of crypto ATMs for scams and fraud, particularly affecting users aged 60-70. In response, AUSTRAC has imposed a $5,000 limit on cash deposits and withdrawals, enhanced customer due diligence, mandatory scam warnings, and stricter transaction monitoring. Additionally, AUSTRAC refused to renew the registration of Harro’s Empires due to ongoing risks. The number of crypto ATMs in Australia has surged to over 1,800, with nearly 150,000 transactions annually, moving about $275 million.

On 25 June 2025, AUSTRAC revealed that a joint law enforcement operation led by NSW Police and supported by AUSTRAC has identified 90 individuals linked to suspicious crypto ATM activity. AUSTRAC’s Cryptocurrency Taskforce analysed high-value transactions across States, uncovering cases involving scam victims, money mules, and suspected offenders. Most individuals contacted by police were found to be victims coerced into transferring illicit funds. Among the cases were elderly Australians who lost hundreds of thousands of dollars to romance and investment scams.

No unfair contract term found in Auto & General’s insurance contract

On 5 June 2025, the Full Federal Court dismissed ASIC's appeal against an earlier ruling that a term in Auto & General Insurance Company Limited's (Auto & General) house and contents insurance policies was not unfair. The term required policyholders to notify Auto & General of any changes in their home and contents. ASIC argued the term imposed unclear obligations and suggested broader rights for Auto & General to refuse claims. The court found the term did not breach the Insurance Contracts Act 1984 (Cth) (Insurance Contracts Act). Auto & General had already replaced the term in its product disclosure statements in May 2023. ASIC is currently considering the decision.

Updated guidance on add-on insurance complaints

On 5 June 2025, the Australian Financial Complaints Authority (AFCA) published updated guidance on how it handles complaints lodged after 1 July 2025 related to add-on insurance products sold before July 2019. The guidance aims to clarify the expectations for all parties involved in such complaints.

Key points of the guidance include:

• detailed information must accompany complaints to facilitate assessment;

• complaints lodged after 30 June 2025 may be considered outside AFCA’s usual six-year limit unless special circumstances apply;

• paid representatives are expected to lodge only eligible complaints; and

• financial firms are reminded to engage and resolve add-on insurance complaints in line with their internal dispute resolution obligations, regardless of AFCA’s jurisdictional limits.

AFCA to resolve BNPL disputes

On 10 June 2025, AFCA began resolving disputes related to BNPL products under new laws. BNPL products are now regulated under the National Consumer Credit Protection Act 2009 (Cth), requiring providers to hold an Australian Credit Licence and mandating AFCA membership. Previously, most BNPL providers were voluntary AFCA members which had allowed their customers to use AFCA for dispute resolution.

ASIC secures guilty pleas in share market manipulation case

Four individuals have pleaded guilty to criminal charges related to a market rigging scheme orchestrated via the Telegram app. The defendants used private Telegram groups to promote selected penny stocks, artificially inflating their prices before selling at a profit. All of them admitted to conspiring to manipulate Australian share prices between August and September 2021. Each faces up to 15 years in prison and fines exceeding $1 million. Additionally, two of the individuals pleaded guilty to dealing with proceeds of crime valued at $10,000 or more, while the remaining admitted to similar offences involving smaller amounts. The case, prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC, will return to the Court on 21 July 2025 for a sentencing date.

ASIC sues Australian Unity for DDO failures

ASIC has initiated legal proceedings against Australian Unity Funds Management Limited (Australian Unity), alleging the company failed to ensure retail investors were within the target market for its Select Income Fund product under its DDO obligations. Between October 2021 and October 2023, Australian Unity issued three Target Market Determinations for the Fund but did not adequately review investor questionnaires to confirm suitability. ASIC claims that while Australian Unity provided a questionnaire to online applicants from October 2021 and to paper applicants from September 2022, it did not review the applicants’ responses until August 2023. Consequently, the company issued interests in the Fund without verifying if investors met the defined target market criteria.

ASIC targets unlawful finfluencers in global crackdown

In a coordinated effort with international regulators, ASIC has issued warning notices to 18 social media influencers, known as 'finfluencers', for unlawfully promoting high-risk financial products and providing unlicensed financial advice. This action is part of a Global Week of Action Against Unlawful Finfluencers, involving regulators from the UK, UAE, Italy, Hong Kong, and Canada. The crackdown utilised a range of regulatory and enforcement measures, including arrests, warning notices, and website takedowns.

ASIC's concerns focus on finfluencers who position themselves as trading experts, promoting complex investment products like contracts for difference and over-the-counter derivatives, often accompanied by misleading representations of success. Following the issuance of INFO Sheet 269 Discussing financial products and services online in 2022, ASIC observed a decline in unauthorised finfluencer activity.

Equity Trustees pays infringement notices for allegedly misleading investment statements

On 13 June 2025, Equity Trustees Limited (Equity Trustees) paid $56,340 to comply with three infringement notices issued by ASIC. The notices alleged that Equity Trustees, as the responsible entity of the Artesian Green and Sustainable Bond Fund, made misleading statements about the fund's investments. From April to November 2024, the fund's product disclosure statement, target market determination and online website inaccurately claimed that the fund’s investments were in green, sustainable, and social corporate bonds, while it had significant exposure to government and supranational bonds, contrary to its disclosed strategy and objectives. Equity Trustees has since rectified the disclosures.

ASIC inquiry into ASX

On 16 June 2025, ASIC announced its launch of an inquiry into the Australian Securities Exchange (ASX) group, focusing on governance, capability, and risk management frameworks. This follows repeated and serious failures, including the CHESS batch settlement incident on 20 December 2024. The inquiry will assess ASX's compliance with its obligations as a market licensee and Clearing and Settlement facility licensee. The panel will make recommendations to address any deficiencies. ASIC will publish a report on the inquiry's outcome, informing future actions.

ASIC has appointed Rob Whitfield as Chair of the expert panel, together with Christine Holman and Guy Debelle as panel members. The panel will provide a report to ASIC by 31 March 2026.

Optus faces $100 million penalty for unconscionable conduct

On 18 June 2025, Optus Mobile Pty Ltd (Optus) agreed to a $100 million penalty, subject to Federal Court approval, for unconscionable conduct in selling telecommunications goods and services. The ACCC's court action revealed that Optus sales staff pressured over 400 vulnerable consumers into purchasing unwanted and unaffordable products between August 2019 and July 2023. Many affected consumers were vulnerable or experiencing disadvantage, including a number of First Nations Australians from remote areas. Optus admitted to the conduct and has committed to compensating impacted consumers and improving its internal systems.

NAB penalised for CDR Rules breaches

On 19 June 2025, the ACCC announced that National Australia Bank Limited (NAB) had paid $751,200 in penalties for alleged breaches of the Consumer Data Right (CDR) Rules. The penalties relate to NAB's failure to disclose or accurately disclose credit limit data in response to requests from CDR accredited providers on behalf of consumers. NAB’s failures impacted a number of fintech services provided to consumers, including mortgage broking tools. NAB has since rectified the data quality issues. This is the highest penalty paid for CDR Rules breaches to date. 

AFCA updates guidance on insurance premium complaints

AFCA has released an updated factsheet and a new external dispute resolution (EDR) response guide to address the rising number of complaints regarding general insurance premium increases. The updated factsheet clarifies the types of complaints AFCA can consider under its rules. The new EDR response guide is designed to assist firms in providing high-quality responses to unresolved complaints about premium increases. This guide aims to ensure that complaints are resolved quickly and efficiently. AFCA urges firms to clearly explain, in as much details as possible, the reasons for premium increases for their customers to be well-informed.

Cairns pawnbroker fined for unlicensed credit activity

On 23 June 2025, Cash Lenders, a Cairns-based pawnbroker, was convicted and fined $12,000 in the Cairns Magistrates Court for engaging in credit activity without holding an Australian Credit Licence. Between July 2015 and May 2020, Cash Lenders issued 9,641 pawn tickets which were effectively credit contracts, allowing debt recovery beyond the sale of pawned goods—contrary to the exemption for pawnbrokers under the National Credit Code.

ASIC’s investigation revealed that Cash Lenders charged excessive fees and interest, used debt collectors, and failed to assess customers’ ability to repay. In one case, a $700 loan ballooned to over $2,200, leaving the borrower in financial hardship. The matter was prosecuted following a referral from ASIC, prompted by concerns raised by the Indigenous Consumer Assistance Network. The conviction follows earlier regulatory action against the company’s former director, who was permanently banned from credit activities in 2018.

The Good Guys agrees to pay $13.5 million for misleading store credit promotions

On 23 June 2025, JB Hi-Fi Limited announced that its subsidiary, The Good Guys Discount Warehouses (Australia) Pty Ltd (The Good Guys), had agreed to, subject to Federal Court approval, resolve the court proceedings initiated by the ACCC in July 2024 for alleged misleading conducts in relation to the advertising and fulfilment of store credit promotions.

The ACCC claimed that The Goods Guys ran 116 store credit and “StoreCash” promotions between July 2019 and August 2023 under which consumers were led to believe that making a qualifying purchase was the sole requirement to receive store credit, when in fact they also had to opt in to marketing communications. The ACCC further alleged that promotional materials failed to adequately disclose that most store credits expired within seven to ten days, contrary to representations that they would not expire or would do so after a reasonable period. It was also claimed that thousands of eligible consumers did not receive store credits from The Good Guys within the promised timeframe or at all, in breach of the Australian Consumer Law.

The proposed resolution includes a requirement for The Good Guys to pay a $13.5 million penalty plus the ACCC’s costs for the proceedings and implement a remediation program for affected customers.

Bupa sued for unconscionable conduct and misleading consumers

The ACCC has commenced Federal Court proceedings against Bupa HI Pty Ltd (Bupa) for misleading conduct and unconscionable practices affecting thousands of private health insurance claims. Between May 2018 and August 2023, Bupa allegedly misrepresented to members that no benefits were payable for Mixed Coverage and Uncategorised Item Claims despite the members being eligible for benefits for the treatments under their policies.

Bupa also admitted its systems and staff training led to incorrect claim rejections, including automated assessments that bypassed necessary manual review between June 2020 and February 2021. The conduct resulted in some consumers delaying or foregoing treatment, incurring out-of-pocket expenses, or upgrading policies unnecessarily.

The ACCC and Bupa will jointly seek a $35 million penalty and other orders, subject to court approval. Bupa has already paid $14.3 million in compensation for over 4,100 affected claims and has entered a court-enforceable undertaking to continue remediation. 

CashnGo sued for alleged unconscionable debt recovery practices

ASIC has launched Federal Court proceedings against Venture 5 Group Pty Ltd, trading as CashnGo Australia (CashnGo), alleging systemic misconduct in its debt recovery practices. Between April 2022 and May 2025, CashnGo operated over 227,000 small amount credit contracts, with nearly 35,000 consumers subjected to unscheduled debits after defaulting which often left them with less than $5 in their accounts.

ASIC claims CashnGo used hourly bank balance monitoring, enabled via internet banking credentials or third-party connections, to initiate immediate debits once funds appeared in accounts to repay some or all of the amount owing in the event of default. The regulator alleges this practice caused financial hardship and deprived consumers of control over their finances.

Further allegations include the use of unfair contract terms and failure to issue compliant direct debit default notices to over 67,000 consumers. CashnGo reportedly earned $77 million in revenue during the period in question. 

Delta sued for alleged manipulation of futures market and financial benchmark

ASIC has commenced civil penalty proceedings in the Federal Court against Delta Power & Energy (Vales Point) Pty Ltd (Delta), formerly Sunset Power International Pty Ltd, alleging manipulation of the ASX 24 electricity futures market. ASIC claims that on 30 occasions between 8 September and 6 October 2022, Delta placed orders for New South Wales Peak Load Electricity Futures Contracts shortly before market close to influence the daily settlement price. ASIC alleges the conduct created a false or misleading appearance of genuine market activity and distorted the financial benchmark used for margining and settlement. The daily settlement price affects the valuation of positions held in electricity futures contracts. ASIC is seeking declarations and pecuniary penalties against Delta.

AFCA updates guidance on general insurance misrepresentation

On 27 June 2025, AFCA published two updated Approach documents addressing general insurance complaints. The first revises AFCA’s guidance on non-disclosure and misrepresentation, incorporating legislative changes to the Insurance Contracts Act that took effect in 2021. The second document introduces a new Approach on the duty to take reasonable care not to make a misrepresentation which applies to complaints involving consumer insurance contracts. Both documents clarify how AFCA will assess complaints involving these issues and aim to provide greater predictability in dispute resolution.