Financial Services and Credit Monthly Update June 2026
CONSUMER CREDIT
ASIC highlights risks in car finance distribution and costs
The Australian Securities and Investments Commission (ASIC) has raised concerns about car finance practices after reviewing more than 350,000 loans from eight lenders. The review found weaknesses in oversight of third‑party distributors, including brokers and car dealers, and inadequate monitoring of consumer outcomes. Report 832 found wide variation in loan costs and significant fees, especially for lower‑value loans. Some borrowers paid multiple establishment fees, including one case where fees exceeded $9,000 on a $49,000 loan. ASIC also identified inconsistent hardship practices, residual debt after repossession, and differing outcomes by borrower location and lender practice, particularly in regional and remote areas.
CONSUMER PROTECTION
Government responds to Senate inquiry on scams prevention framework
The Federal Government has released its response to the Senate Economics Legislation Committee’s February 2025 report on the Scams Prevention Framework Bill 2024 (Cth) (now enacted). The response addresses the framework’s scope, the interaction between overarching obligations and sector‑specific codes, enforcement settings and consumer redress.
Treasury consults on unfair trading protections for small businesses
The Treasury has opened consultation on extending unfair trading protections to small businesses and franchisees as part of broader Australian Consumer Law reforms. The proposal considers whether small businesses should receive consumer‑style protections when acquiring goods and services, reflecting concerns about information asymmetry and bargaining power. Submissions close on 10 July 2026.
Regulators to gain infringement notice powers for unfair contract terms
The Federal Government has announced plans to give the Australian Competition and Consumer Commission (ACCC) and ASIC infringement notice powers for unfair contract term breaches. The proposed changes would allow regulators to respond to certain breaches without court proceedings, following recommendations from the Final Report of the Review of the Amended Unfair Contract Terms Protections, tabled in June 2026. The measures build on November 2023 reforms that made unfair contract terms illegal and increased maximum penalties. The proposed regime would sit alongside existing court‑based enforcement options.
Thousands of scam websites taken down as online losses persist
The National Anti‑Scam Centre has reported 5,834 scam website takedowns between January and March 2026. These included nearly 2,000 fake online gambling sites, plus hundreds of scam advertisements and profiles referred to major digital platforms. Scamwatch received more than 45,000 reports during the quarter, with reported losses of $76.7 million, down 17% on the same period in 2025. Including police reports, total reported losses were $248.3 million. Online scams caused around half of reported losses, with investment scams the most costly category.
ASIC expands list of entities linked to lead generation practices
ASIC has expanded its list of known entities involved in lead generation after further surveillance of referrals and marketing for financial products and credit. The update identifies additional businesses ASIC has observed in arrangements that may heighten consumer harm.
ASIC reiterated that lead generation is not unlawful, but raised concern about cold calling, opaque referral chains and on‑selling consumer information without clear consent. The list is intended to help consumers and industry identify risky arrangements and support licensees’ obligations for third‑party referrers, including misleading conduct, privacy and conflicts management.
ASIC enhances register to combat imposter scams
ASIC has introduced a new initiative to help consumers and businesses verify financial services websites, targeting cloned websites and fake investment ads. ASIC is publishing website addresses of Australian financial services (AFS) licensees on its Professional Registers Search (PRS). More than 6,500 licensees have been invited to provide details since May 2026. The PRS will show principal and other websites, or indicate if no details have been supplied. ASIC has encouraged participation and may consider compulsory action.
CORPORATE
Review of tax and corporate whistleblowing regimes
The Treasury has opened consultation on its statutory review of Australia’s tax and corporate whistleblowing frameworks, focusing on the Corporations Act 2001 (Cth) and the Taxation Administration Act 1953 (Cth). The review considers whether protections strengthened through the 2019 reforms, including the tax whistleblowing regime, are operating as intended. The consultation seeks views on who qualifies for protection, covered disclosures, confidentiality, anonymity, remedies, penalties, access to justice, regulatory administration, incentives and interaction between the tax and corporate regimes. Submissions close on 29 July 2026.
ASIC proposes to withdraw relief for uncontactable members
ASIC is consulting on repealing the ASIC Corporations (Uncontactable Members) Instrument 2016/187 before its scheduled sunset on 1 October 2026. The instrument gives relief from sending annual reports to uncontactable members, subject to conditions. ASIC considers the instrument no longer necessary after the Treasury Laws Amendment (Modernising Business Communications and Other Measures) Act 2023 (Cth) inserted equivalent relief into the Corporations Act. The instrument is also no longer operative because it relies on repealed provisions. Submissions close on 17 July 2026.
ASIC proposes to consolidate financial reporting and audit relief
ASIC has proposed consolidating financial reporting and audit relief instruments into fewer instruments. The proposal would remake and combine similar or overlapping class orders and ASIC instruments, many due to sunset. ASIC says the consolidated instruments would preserve existing relief, remove duplication and update references without policy change. Submissions close on 10 July 2026.
ASIC expands email lodgement for paper forms
ASIC has expanded email lodgement to 97% of its paper‑based forms, after a June 2026 release added 42 further forms and sub‑forms. The additions represent more than 32,000 annual lodgements and include company reinstatements, correction requests, foreign company filings, court orders, notices and resolutions. Postal lodgement remains available.
Company registers to be strengthened under new transparency laws
Parliament has passed the Treasury Laws Amendment (Business Registries Stabilisation and Uplift) Act2026 (Cth), reforming Australia’s business registry framework. The changes enhance the Director Identification regime and update corporate registers maintained by ASIC. From 1 July 2027, Director Identification Numbers will be linked to the ASIC Companies Register, making director identities easier to trace across entities. The reforms also update ASIC’s registry powers to improve digital services, registry integrity and protections against misuse of registry data.
DIGITAL ASSETS
Government responds to Senate report on digital assets bill
The Federal Government has released its response to the Senate Economics Legislation Committee’s report on the Digital Assets (Market Regulation) Bill 2023 (Cth), a private senator’s bill that was not passed. The response supports one recommendation, supports another in principle and notes the remaining recommendations. It sits alongside the Government’s broader digital asset reform agenda.
ASIC extends transition timeframes for digital asset firms
ASIC has extended its sector‑wide no‑action position for digital asset businesses providing financial services until 30 September 2026, giving firms more time to apply for or vary an AFS licence. The extension also covers businesses that may need an Australian market licence or clearing and settlement facility licence, and firms using authorised representative or intermediary arrangements with an AFS licensee. ASIC has also extended the deadline for digital asset businesses to join the Australian Financial Complaints Authority (AFCA) from 30 June to 30 September 2026. AFCA membership is required for an AFS licence application under ASIC’s updated digital asset guidance. The aligned extensions give firms more time to complete licensing and dispute resolution arrangements.
FINANCIAL ADVICE
Moneysmart retirement planner sees strong uptake
More than 160,000 Australians have used ASIC’s Moneysmart retirement planner in its first six months. The tool lets users estimate retirement income, test scenarios and assess whether they are on track, amid low reported confidence in retirement preparedness. Usage data shows holidays are the most common retirement goal, ahead of buying a car, renovations or debt reduction. The data, based on around 23,000 users, also shows differences by age and gender in retirement priorities.
ASIC extends no‑action position for second party opinion providers
ASIC has extended its class no‑action position for providers of second party opinions (SPOs) that constitute general financial product advice to wholesale clients. The relief, first introduced in June 2024, now applies until 15 June 2028. Conditions include that the SPO relates only to wholesale offers, conflict management arrangements are in place and required disclosures accompany the opinion.
FINANCIAL MARKETS
ASIC consults on proposed pre‑hedging guidance
ASIC has commenced consultation on proposed guidance on pre‑hedging, to clarify how existing obligations apply and align Australia’s approach with international standards. The draft sets out ASIC’s expectations for market participants and does not create new legal requirements. The guide would help AFS licensees and other market participants assess when pre‑hedging is appropriate and manage conduct and market integrity risks. ASIC also seeks views on whether to include better practice examples. Submissions close on 27 July 2026.
ASIC warned private credit sector of 30 June valuations and reporting
ASIC has warned Australia’s private credit sector ahead of 30 June valuations and reporting, urging funds to ensure valuations are current, accurate and based on realistic assumptions. It called on boards, trustees and investment managers to review governance, valuation, disclosure and conflicts practices against ASIC’s published principles. ASIC’s surveillance suggests the sector is facing tighter liquidity, borrower stress and credit deterioration. While most funds can manage liquidity, ASIC identified concerns with lagging valuations, concentration risk, inconsistent disclosure and conflicts. It will continue surveillance and enforcement, and expects participants to reassess assumptions during the reporting cycle.
ASIC proposes to remake derivatives and securities relief instruments
ASIC has commenced consultation on remaking four relief instruments for exchange‑traded derivatives and securities, due to sunset between September and October 2026. ASIC says the instruments remain necessary and proposes a further five‑year term with only minor, non‑substantive amendments. The instruments cover disclosure for exchange‑traded derivatives, recognition of securities transferred through New Zealand’s settlement system, transfer provisions for certain foreign securities quoted on ASX, and substantial holding disclosure relief for securities lending. Submissions close on 20 July 2026.
ASIC convenes roundtable on capital markets competitiveness
ASIC has convened a roundtable of market and financial services leaders on keeping Australia’s capital markets competitive amid technological change. The initiative draws on REP 835 and ASIC’s broader work on public and private market dynamism. ASIC noted trends toward automation, shorter settlement cycles, extended trading hours, distributed ledger technology and artificial intelligence. The roundtable will consider practical action on market infrastructure, innovation and risks including concentration, cyber resilience and retail exposure.
FINANCIAL PRODUCTS
ASIC updates advertising guidance for financial and credit products and services
ASIC has updated Regulatory Guide 234 (RG 234) on advertising financial products and services to reflect regulatory and enforcement developments since 2012. The update clarifies ASIC’s expectations on misleading or deceptive advertising, consolidates past performance guidance from Regulatory Guide 53 into RG 234, withdraws RG 53 and brings advertising guidance into one document.
FINANCIAL SERVICES
ASIC updates financial complaints data dashboard
ASIC has updated its Internal Dispute Resolution data dashboard with complaints opened, received or closed between 1 July and 31 December 2025. The dashboard shows aggregated complaint volumes, products, issues and outcomes across the financial system. The update adds complainant demographics by age group, gender and location, although not at firm level. ASIC has also released a downloadable data file for reporting, benchmarking and trend analysis.
INSOLVENCY
ASIC issues guidance on appointment of reviewing liquidators
ASIC has published Information Sheet 296 on its discretionary power to appoint a reviewing liquidator to a company in external administration. It explains who may apply, the factors ASIC considers, the steps after appointment, ASIC’s expectations of administrators and matters that may be reviewed. The guidance clarifies when ASIC may, or is less likely to, exercise the power. Introduced in 2017 under the Corporations Act, the power allows ASIC to arrange an independent review of aspects of an external administration where appropriate.
INSURANCE
Consultation on ban on adverse genetic test use in life insurance
The Treasury has released exposure draft regulations to prohibit life insurers from requesting or using adverse genetic test results when underwriting or administering certain life insurance products. The ban would apply to genetic tests predicting future disease risk across death, total and permanent disability, trauma and income protection cover.
The regulations would replace the current industry moratorium with a permanent, enforceable prohibition. Insurers could still use information about current health, medical history or diagnosis, but not predictive genetic information. Submissions closed on 26 June 2026.
AFCA has also consulted on Rule changes to support the ban. The amendments would clarify AFCA’s jurisdiction and processes for complaints alleging reliance on prohibited genetic testing information, including evidentiary and information‑gathering issues. Submissions also closed on 26 June 2026.
PAYMENTS
RBA publishes 2026 assessment of RITS against international standards
The Reserve Bank of Australia (RBA) has released its 2026 assessment of the Reserve Bank Information and Transfer System (RITS), Australia’s real‑time gross settlement system, against the Principles for Financial Market Infrastructures (PFMI). The assessment forms part of the RBA’s regular review of RITS against international safety and resilience standards. The report evaluates RITS across the PFMI, including ratings, recommendations and recent developments. It also identifies areas requiring ongoing attention for compliance with expectations for systemically important payment systems.
RBA launches review of payments system regulation
The RBA has commenced a broad review of payments system regulation, with an Issues Paper seeking feedback on reform priorities. The review follows December 2025 amendments to the Payment Systems (Regulation) Act 1998 (Cth), which expanded the regime to cover more payment systems and participants.
The Issues Paper covers merchant payment choice, competition between card and account‑to‑account payments, mobile wallets, buy now pay later, non‑designated payment systems, fraud prevention and cryptographic resilience. Submissions are due by 7 August 2026 and will inform regulatory priorities, with further consultation expected from mid‑2027.
Interim authorisation for bank joint venture on cash distribution
The ACCC has granted interim authorisation for Australia’s major banks to take preparatory steps toward a commercial cash distribution joint venture. The authorisation applies to ANZ, CBA, NAB and Westpac, which seek approval to create a single joint cash pool and bailment structure through a new entity. Each bank would hold a 25% interest in the joint venture and shared cash pool. The interim authorisation permits limited preparatory conduct while the ACCC continues its assessment. It may be reviewed at any time and does not indicate whether final authorisation will be granted.
PRIVACY AND DATA
Regulators formalise coordination on digital platform oversight
Australia’s digital economy regulators have formalised arrangements to strengthen oversight of digital platforms, with the Digital Platform Regulators Forum (DP‑REG) signing an MOU on coordination. The agreement covers information sharing and joint work on scams, privacy, online safety and competition issues. The MOU supports coordinated responses to platform risks while preserving each regulator’s statutory functions. DP‑REG members may cooperate on market monitoring, conduct and market power issues, and overlapping regulatory approaches. Members are the ACCC, ACMA, eSafety Commissioner and OAIC.
ASIC amends mandatory credit reporting relief
ASIC has amended mandatory credit reporting relief through ASIC Credit (Amendment) Instrument 2026/64. The amendment expands relief under ASIC Credit (Mandatory Credit Reporting) Instrument 2021/541 by adding an exempt account category. ASIC says the relief remains effective and necessary, and has extended the instrument’s sunset date to 1 October 2031.
PRUDENTIAL
APRA finalises new IRB accreditation pathway for banks
The Australian Prudential Regulation Authority (APRA) has finalised a revised pathway for authorised deposit‑taking institutions to obtain internal ratings‑based (IRB) accreditation under Prudential Standard APS 113. The reforms aim to make accreditation clearer and more accessible for medium‑sized banks while maintaining minimum prudential requirements. The pathway allows phased implementation over three years and progressive capital benefits. APRA has clarified its expectations and supervisory engagement, including phased implementation of some requirements such as the banking book interest rate risk capital charge. The final framework took effect on 30 June 2026, with transitional arrangements.
APRA finalises guidance on liquidity treatment of settlement deposits
APRA has finalised an FAQ on how ADIs subject to the Minimum Liquidity Holdings (MLH) regime should treat deposits with settlement service providers. Security deposits controlled by the settlement provider are encumbered and should not count as MLH liquid assets under APS 210.
Deposits with settlement service providers may count as MLH liquid assets if unencumbered and within the ADI’s control, including some deposits securing overdraft facilities drawable within two business days. APRA has extended the transition period to 31 December 2026, with the clarified treatment expected in December 2026 quarterly liquidity reporting.
APRA advances reforms to prudential governance framework
APRA has released further proposals in the final phase of its review of governance requirements for banks, insurers and superannuation trustees. The package includes an updated draft Prudential Standard CPS 510 Governance (CPS 510) and responds to feedback on earlier proposals.
The changes would strengthen expectations for board governance, conflicts, and fitness and propriety, while removing duplicative fit and proper reporting after the Financial Accountability Regime (FAR). APRA also proposes to consolidate five standards into CPS 510, align governance requirements and give boards more flexibility to delegate lower‑value compliance matters. Consultation closes on 28 August 2026, with final standards expected in late 2026 and commencement from early 2028.
APRA and ASIC ease FAR reporting requirements
APRA and ASIC have announced proposed FAR changes to reduce regulatory burden while maintaining accountability standards. The proposals remove key functions requirements, raise the threshold for notifying accountability changes and remove the need for accountability maps to include direct reports. ASIC will also streamline responsible manager licensing for FAR entities, and APRA is consulting on removing separate fit and proper reporting. Implementation is targeted by the end of 2026, alongside proposed legislative changes allowing accountability statements and maps to be provided on request rather than upfront.
APRA sets expectations for managing geopolitical risk
APRA has written to banks, insurers and superannuation funds on minimum expectations for readiness to respond to geopolitical shocks, including trade restrictions, sanctions, armed conflict and disinformation. APRA said awareness has improved, but gaps remain in governance, risk management and crisis preparedness.
The expectations cover six areas, including integrating geopolitical risk into planning and stress testing, strengthening non‑financial risk management and improving board challenge on technology risks. APRA says the guidance clarifies existing standards rather than adding new requirements. Larger, more exposed entities must complete targeted readiness assessments.
APRA launches redesigned website
APRA has launched an upgraded website to improve navigation, accessibility and usability, with a revised layout and content structure.
APRA publishes findings of inaugural system risk stress test
APRA has released findings from its first system‑wide stress test across the banking and superannuation sectors. The exercise involved the four major banks and six large superannuation funds and modelled severe liquidity stress, elevated member withdrawals and disruption to a key service provider. All participants withstood the shock, supported by bank liquidity buffers, central bank facilities and super funds’ access to global liquidity. APRA identified vulnerabilities from system interconnectedness, including bank and super fund funding concentration, shared service providers and differing assumptions about funding stability.
APRA finalises longevity capital reporting template
APRA has confirmed it will implement the reporting template for amendments to the capital treatment of longevity products without change after receiving no submissions. The requirements support broader prudential capital updates for life insurers offering longevity products. APRA also noted that life companies intending to apply the Advanced Illiquidity Premium from 1 July 2026 should have engaged their APRA supervisor in advance.
APRA updates FAQs on superannuation data reporting
APRA has released seven new frequently asked questions on superannuation data reporting under the Superannuation Data Transformation framework.
APRA consults on bank risk weight changes to support lending
APRA has commenced consultation on credit risk capital changes to support lending while maintaining resilience. The proposals better align risk weights with underlying risks in selected corporate lending, including large domestic public infrastructure exposures, high‑quality unrated corporate lending and certain residential land acquisition, development and construction exposures. APRA says the changes would increase lending capacity and improve capital efficiency. Submissions close on 7 September 2026.
SUPERANNUATION
ASIC approach to super fund advertising ban in employee onboarding
ASIC has outlined its approach to the new ban on advertising superannuation funds during employee onboarding, commencing 1 July 2026. The ban applies to onboarding advertising but not general public advertising. Eligible MySuper products, employer default funds and stapled funds are excluded.
ASIC will take a transitional enforcement approach for the first 12 months, focusing on serious or reckless misconduct rather than genuine compliance efforts. The ban is implemented through Corporations Act amendments under the Treasury Laws Amendment (Supporting Choice in Superannuation and Other Measures) Act 2026 (Cth), with regulations and updated guidance to follow.
ASIC flags lagging progress on super death benefit claims
ASIC has released a progress review finding that some trustees improved death benefit claims handling, but others still fall short on basic process and service expectations. The review covered 45 trustees and found uneven implementation of earlier ASIC recommendations despite rising claim volumes.
ASIC reported fewer internal complaints about death benefit delays, but claim volumes rose about 10% in the year to October 2025. Ongoing concerns include poor tracking of claim timeframes, weak accountability for low‑value claim delays and inadequate communication with beneficiaries, including First Nations claimants. ASIC will continue monitoring and may use enforcement tools.
ASIC highlights failures by super platform trustees
ASIC has warned superannuation platform trustees to address persistent failures in safeguarding retirement savings, after reviewing six trustees overseeing more than $300 billion in member benefits. ASIC identified gaps in monitoring harmful advice fee deductions, unusual fee patterns and high‑risk switching, plus weaknesses in advice fee controls, advice document checks, licensee due diligence and risk indicators. The review also found delayed or inadequate responses to suspicious activity and continued reliance on limited or manual monitoring. ASIC linked these concerns to prior misconduct involving the Shield and First Guardian Master Funds, which exposed trustee oversight weaknesses.
TAXATION
Consultation on CGT concessions for innovative start-ups
The Treasury has commenced consultation on proposed CGT reforms for start‑up investments following 2026–27 Budget measures. Broader reforms will replace the 50% CGT discount with cost base indexation and a 30% minimum tax rate from 1 July 2027. Treasury is seeking feedback on a new “Innovative Business CGT Concession” for early‑stage and high‑growth ventures.
The consultation covers eligibility and investment conditions, including a proposed 10‑year age limit, $50 million turnover cap, possible 15‑year limit for longer commercialisation sectors, a five‑year minimum holding period, a $10 million lifetime concessions cap and transitional arrangements for shares issued before 30 June 2027.
AML/CTF
AUSTRAC urges enrolment under expanded AML/CTF regime
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has urged newly regulated businesses to enrol before expanded AML/CTF laws commence on 1 July 2026. Captured businesses, including legal professionals, accountants, conveyancers, real estate professionals and dealers in precious metals and stones, must enrol by 29 July 2026. Affected entities must implement compliance frameworks from commencement, including an AML/CTF program, compliance officer, staff training and suspicious matter reporting processes.
AUSTRAC launches expanded AML/CTF education platform
AUSTRAC has launched an expanded education platform for AML/CTF obligations. The platform consolidates e‑learning, webinars, videos and guidance for existing and newly regulated entities. Users can register, track training, access recordings and receive completion certificates. AUSTRAC has also released quick guides and staff resources, with further updates expected as reforms roll out.
AUSTRAC introduces new reporting forms for AML/CTF regime
AUSTRAC introduces new threshold transaction report (TTR) and suspicious matter report (SMR) forms in AUSTRAC Online from 1 July 2026. The forms reduce information requirements and manual entry and include validation checks. Guidance and a training environment are available. Existing reporting entities enrolled by 30 March 2026 may use current forms until 30 March 2029. Other reporting obligations are unchanged.
AUSTRAC makes virtual asset provider register public
AUSTRAC has made its virtual asset service provider (VASP) register public, allowing consumers and businesses to check whether a provider is registered. The register lists registered and regulated Australian VASPs and has been available since 30 June 2026. The register covers designated virtual asset services, including exchange, custody, safekeeping, transfer and certain financial services relating to virtual assets. The register also identifies suspended, cancelled or refused registrations where money laundering or terrorism financing concerns arise.
AUSTRAC releases intelligence on emerging financial crime threats
AUSTRAC has published intelligence reports on emerging money‑laundering, terrorism‑financing and proliferation‑financing risks, including terrorism financing in the non‑profit sector. The reports highlight use of everyday financial services, corporate structures, routine transactions, artificial intelligence and virtual assets to conceal illicit funds. AUSTRAC says overall terrorism financing risk in the non‑profit sector remains stable, but vulnerabilities require active management.
DISPUTES AND ENFORCEMENT
AFCA to hear disputes over scam losses
The Federal Government has confirmed AFCA will be able to consider external disputes about scam losses under upcoming scams prevention reforms. Consumers and small businesses will be able to complain where a regulated entity fails to meet new framework obligations. The change provides an accessible dispute pathway alongside regulatory and enforcement mechanisms.
AFCA releases response guide for hail damage claim disputes
AFCA has published a new External Dispute Resolution response guide for hail damage insurance complaints. It helps insurers, complainants and representatives focus responses on information relevant to the issues in dispute, improving complaint resolution efficiency.
Court finds car dealership engaged in unlicensed lending and unlawful fees
The Federal Court has found south‑west Sydney car dealership Diamond Wheels Pty Ltd (Diamond Wheels), trading as Lansvale Motor Group, and Keo Automotive Pty Ltd (Keo Automotive) engaged in unlicensed consumer lending and charged unlawful and excessive interest. Neither company held an Australian Credit Licence. Former and current director Ken Keomanivong was also found liable for involvement in the lending arrangements. The companies admitted the contraventions after ASIC proceedings. Consumers were denied statutory protections and often charged almost double the lawful interest. Diamond Wheels issued more than 200 loan contracts in 2018–2019, and Keo Automotive issued 119 between 2020 and 2023. A further hearing on penalties and relief is scheduled for August 2026.
Federal Court imposes record penalties for CFDs and unlicensed conduct
The Federal Court has ordered record civil penalties exceeding $300 million against Union Standard International Group (Union Standard) and related entities after ASIC proceedings concerning CFD misconduct. The Court found widespread contraventions, including unconscionable conduct, misleading representations and financial services law breaches involving retail clients. The penalties include $300 million against Union Standard and associated entities, reflecting the misconduct’s scale and seriousness. The Court also made injunctions and declarations. The decision is one of ASIC’s largest enforcement penalties and follows findings of systemic failures in high‑risk CFD products promoted to Australian consumers.
High Court finds Block Earner product was a financial product
The High Court has unanimously upheld ASIC’s appeal, finding that Block Earner’s fixed‑yield digital asset product “Earner” was a financial product requiring an AFS licence. The decision overturns the 2025 Full Federal Court ruling and confirms Earner involved a financial investment because investor funds were used to generate returns for investors and the issuer. The Court also found Earner was a derivative because returns varied by digital asset values and exchange rates. The High Court emphasised the broad, technology‑neutral definition of “financial product”, focusing on substance over labels. The matter returns to the Federal Court for ASIC’s appeal on penalty.
ASX admits misleading market disclosure on CHESS replacement project
ASX Limited (ASX) has admitted that its February 2022 announcement saying the CHESS replacement project was “progressing well” was misleading. ASIC and ASX will ask the Federal Court to impose a $20.5 million civil penalty and $3 million costs order, subject to court approval. ASX admitted that the project was internally classified as “red”, was not on track for the planned April 2023 go‑live date and had significant unresolved issues. ASX later delayed, paused and partially wrote down the project, derecognising about $245–255 million in costs. The Court will decide whether the proposed orders are appropriate.
Former Star executives disqualified over governance failures
The Federal Court has disqualified former Star Entertainment Group Limited (Star) executives Mathias Bekier and Paula Martin and ordered civil penalties for directors’ and officers’ duty breaches. Mr Bekier was disqualified for six years and ordered to pay $700,000. Ms Martin was disqualified for seven years and ordered to pay $400,000. The Court found both executives failed to manage serious money laundering and criminal activity risks at Star’s casino operations, breaching section 180 of the Corporations Act. The penalties follow earlier findings of governance and risk management failures at Star. Both executives must also contribute to ASIC’s costs.
Federal Court imposes $35m penalty on HSBC for scam failures
The Federal Court has ordered HSBC Bank Australia Limited (HSBC) to pay a $35 million penalty after admitting significant scam protection failures. The Court found serious and systemic ePayments Code contraventions, including failure to implement key scam controls, average investigation times of 144 days and failure to properly apply liability allocation rules. The Court also identified deficiencies in helping customers regain account access after scams. HSBC has established remediation, paying about $21.5 million and recovering a further $6.5 million for customers. The orders require adverse publicity notices through HSBC’s website, app and direct communications with impacted customers.
Full Federal Court upholds finding that HCF Life term was not unfair
The Full Federal Court has dismissed ASIC’s appeal against a decision that a “pre‑existing condition” term used by HCF Life Insurance Company Pty Limited (HCF Life) was not unfair. The primary finding that the term was liable to mislead the public remains undisturbed. ASIC had appealed to clarify how unfair contract term laws apply to insurance contracts. The term appeared in HCF Life’s “Recover” range and previously led to a $750,000 penalty for misleading conduct in 2025. HCF Life has replaced the term and notified affected policyholders. ASIC is considering the outcome.
APRA commences investigation into Diversa remuneration practices
APRA has commenced a formal investigation into Diversa Trustees Limited (Diversa) focused on executive remuneration decision‑making and processes. The investigation will assess compliance with prudential standards and trustees’ duties under the Superannuation Industry (Supervision) Act 1993 (Cth). The investigation is confined to remuneration and will not address potential liability for member losses from First Guardian, which is subject to separate ASIC proceedings. The action follows APRA’s earlier prudential concerns about Diversa’s governance and oversight.
ASIC sues Keystone directors over alleged Shield governance failures
ASIC has commenced Federal Court proceedings against former Keystone Asset Management Ltd directors and compliance committee members over the Shield Master Fund. ASIC alleges they breached duties by exposing more than $530 million of investor funds, mostly superannuation savings from about 5,800 investors, to significant risk. ASIC alleges about $305 million was transferred to a related property development vehicle and then to entities linked to some directors without adequate safeguards. It alleges lack of security, valuations, oversight and conflict management, and unauthorised use of investor funds. ASIC seeks civil penalties, disqualification orders and costs.
Federal Court imposes $10.3m penalty on Mercer Super for reporting failures
The Federal Court has ordered Mercer Superannuation (Australia) Limited (Mercer Super) to pay $10.3 million for systemic reportable situations failures. Between October 2021 and September 2024, Mercer Super had inadequate systems for identifying and reporting investigations into potentially significant breaches. It failed to report seven investigations, reported another late, and once gave false or misleading information understating affected members. The matters included insurance premiums charged after death, account update failures causing higher fees or reduced cover, delays allocating $64 million in member funds and failures to provide insurance to eligible members. The Court found the deficiencies persisted despite Mercer Super being on notice and compromised ASIC’s supervision.
ACCC takes ARMA Group and Force Legal to court over debt notices
The ACCC has commenced Federal Court proceedings against debt collector ARMA Group Holdings Pty Ltd (ARMA) and legal practice Force Legal Pty Ltd (Force Legal), alleging Australian Consumer Law breaches arising from more than 320,000 debt enforcement notices. The entities are related companies ultimately owned by Credit Clear Limited. The ACCC alleges the notices misrepresented that debts were payable when they were no longer owed or were statute‑barred. It also alleges Force Legal letters misled consumers about imminent legal action, consequences of non‑payment and Force Legal’s independence from ARMA. The ACCC seeks penalties, compensation and other orders.
Privacy Commissioner orders Amex to compensate complainant over privacy breach
The Australian Privacy Commissioner has ordered American Express Australia Limited (Amex) to compensate a complainant after finding it breached Australian Privacy Principle 11.1. The determination followed a Commissioner‑initiated investigation into unauthorised employee access to personal information. The Commissioner found Amex failed to take reasonable steps to protect personal information from employee access. Amex must compensate economic and non‑economic loss, reimburse expenses, apologise in writing and implement additional technical controls, including restricted customer information access and enhanced account‑level access logging.