Financial Services and Credit Monthly Update March 2026
CONSUMER PROTECTION
ASIC refreshes Moneysmart website
The Australian Securities and Investments Commission (ASIC) has launched a refreshed Moneysmart website, updating the design and content of its consumer financial education platform 15 years after its original launch. The refresh introduces a redesigned user interface, updated content and new imagery, with an emphasis on improving accessibility and usability across a broad range of financial topics. The updated site focuses on practical guidance for everyday financial decisions, including budgeting, saving, managing credit and understanding investment risks.
Moneysmart guidance on using AI tools for financial questions
ASIC’s Moneysmart website has published new consumer guidance on the use of publicly available artificial intelligence (AI) tools for financial information. The guidance, released on 23 March 2026, responds to increasing reliance on AI platforms for money‑related questions, particularly among younger Australians.
ASIC highlighted research commissioned by Moneysmart indicating that 18 per cent of Gen Z Australians use AI platforms for financial information, with a majority expressing confidence in the accuracy of AI‑generated guidance. The new content outlines how AI tools may assist with general research tasks, such as summarising information or explaining concepts, while also highlighting their limitations. The guidance warns that general‑purpose AI tools can provide inaccurate or inappropriate responses and should not be relied on as a sole source of financial information. It encourages consumers to verify information against trusted, independent sources and to consider seeking advice from licensed advisers where appropriate.
Scam losses exceed $2 billion as regulators highlight ongoing fraud risks
Australians reported financial losses of $2.18 billion to scams in 2025, according to the National Anti‑Scam Centre’s latest Targeting Scams Report, released by the ACCC on 30 March 2026. While the number of scam reports stabilised during the year, total losses increased by 7.8 per cent compared with 2024. Losses remain below the 2022 peak of $3.1 billion.
Investment scams accounted for the largest share of losses at $837.7 million, followed by payment redirection, romance, phishing and remote access scams. Together, these categories represented 60 per cent of all reported scam losses. Older Australians were disproportionately affected, with people aged 65 and over accounting for 26.5 per cent of losses. The report draws on data from multiple agencies, including ASIC and the AFP‑run ReportCyber, and highlights increasing scam sophistication, including the use of online platforms and emerging technologies. It also outlines expanded disruption activity by regulators and industry partners during 2025.
CORPORATE
ASIC chair reflects on directors’ risk, accountability and judgement
ASIC Chair Joe Longo used a keynote speech to the Australian Institute of Company Directors on 10 March 2026 to reflect on the growing demands placed on company directors. Mr Longo said the role now involves navigating expanding legal, regulatory and community expectations in an increasingly uncertain business environment, but emphasised that the law does not require directors to be risk‑averse or infallible.
Drawing on recent Federal Court authority, he said directors are expected to take considered risks, actively engage with information and not rely passively on management or volume of board papers as an excuse. He pointed to heightened scrutiny since the Hayne Royal Commission, rising regulatory complexity and enforcement of directors’ duties by regulators as reshaping boardroom obligations in Australia.
Mr Longo also highlighted the governance challenges posed by artificial intelligence, urging boards to develop a clear understanding of its risks and opportunities. Despite the pressures, he described directorships as a privilege that remains central to effective corporate governance.
ASIC consults on enhanced disclosure of ownership and control of listed companies
ASIC has released proposals to strengthen transparency around the ownership and control of entities listed on Australian financial markets, following recent legislative reforms to the Corporations Act 2001 (Cth) (Corporations Act). The consultation, published on 10 March 2026, is aimed at improving visibility of who ultimately owns or controls listed companies, including through the use of equity derivatives.
The proposals give effect to reforms introduced by Schedule 1 of the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Act 2025 (Cth), which broaden substantial holding disclosure obligations and strengthen tracing notice regimes. In particular, the reforms extend disclosure requirements to capture interests arising from equity derivatives and align the obligations of foreign‑registered listed entities with those of Australian‑registered companies.
ASIC’s consultation paper proposes a new legislative instrument, a revised substantial holding notice form, and amendments to several regulatory guides dealing with relevant interests and takeover disclosures. Submissions are due by 21 April 2026. The reforms are scheduled to commence on 4 December 2026.
ASIC remakes and updates financial reporting relief instruments
ASIC has remade three legislative instruments providing relief from aspects of the financial reporting framework, replacing instruments scheduled to sunset on 1 April 2026. The updated instruments will operate until 1 April 2031. The remade instruments continue relief relating to rounding amounts in financial and directors’ reports, electronic lodgement of financial and sustainability reports, and certain disclosure relief for continuously quoted securities and cleansing notices. The electronic lodgement relief has been extended to entities listed on Cboe Australia, in addition to ASX and other licensed markets.
Following consultation, ASIC also confirmed it will withdraw Regulatory Guide 28, which it considers redundant, repeal a legacy instrument relating to offer information statements, and make consequential amendments to another relief instrument and several regulatory guides in April 2026.
ESG
ASIC launches e‑learning modules on sustainability reporting
ASIC has released the first tranche of new e‑learning modules to support companies preparing for Australia’s incoming sustainability reporting regime. The modules, launched on 30 March 2026, are designed to explain the core concepts underpinning the sustainability reporting requirements introduced into the Corporations Act.
The initial three self‑paced modules cover an overview of the new reporting framework, the basics of climate change, and climate‑related physical risks. They have been developed jointly by ASIC and the Australian Accounting Standards Board and are primarily aimed at Group 2 and 3 entities, which are expected to commence sustainability reporting for financial years beginning on or after 1 July 2026. The modules are also intended for directors, advisers, auditors and other participants in the climate reporting ecosystem. ASIC has indicated that a further five modules will be released in coming months, followed by in‑person workshops to support implementation.
FINANCIAL ADVICE
ASIC highlights social media’s influence on Gen Z financial decisions
ASIC has released new research examining how young Australians use online sources when making financial decisions. The findings, published as part of ASIC’s Moneysmart Gen Z study, show that 63% of Australians aged 18–28 use social media for financial information, with 30% turning to YouTube and 18% using AI platforms. More than half of respondents reported trusting financial information from social media or “finfluencers”, while almost two‑thirds said they trust AI‑generated information.
The research suggests this reliance is linked to riskier behaviour, particularly in crypto‑assets. Almost one in four Gen Z respondents reported owning cryptocurrency, with many taking short‑term or speculative approaches, often influenced by online content. The survey also found high exposure to crypto advertising and unsolicited investment offers.
Treasury consults on streamlined education standards for financial advisers
The Treasury has opened consultation on proposed reforms to the education standard for financial advisers. The proposals are intended to streamline the current education requirements and support an expanded pipeline of new entrants to the advice profession. The consultation follows the Government’s earlier announcement to reform adviser education as part of its broader financial advice agenda. Consultation is scheduled to close on 17 April 2026.
FINANCIAL MARKETS
ASIC consults on updates to derivatives transaction reporting rules
ASIC has invited industry feedback on proposed amendments to the ASIC Derivative Transaction Rules (Reporting) 2024 (Cth), as part of an ongoing review of Australia’s derivatives trade reporting framework. The consultation was announced on 27 March 2026. The proposed changes are intended to simplify reporting obligations and reduce regulatory complexity. Submissions on the proposed updates are due by 8 May 2026.
FINANCIAL PRODUCTS
ASIC consults on remaking relief for exchange‑traded warrants
ASIC has proposed remaking two legislative instruments that provide regulatory relief for exchange‑traded warrants, both of which are scheduled to sunset in 2026. The instruments proposed to be remade are the relief for margin lending obligations applying to exchange‑traded instalment warrants, due to sunset on 1 April 2026, and the relief from disclosure requirements for secondary sales of exchange‑traded warrants, due to sunset on 1 October 2026. ASIC assessed that both instruments are operating effectively and continue to be a necessary part of the regulatory framework. Consultation closed on 24 March 2026.
FINANCIAL SERVICES
ASIC withdraws and updates guidance as part of simplification program
ASIC has withdrawn and amended a number of regulatory guides as part of a broader review of its regulatory guidance aimed at reducing complexity for industry. The changes were announced on 10 March 2026. Two regulatory guides have been withdrawn: RG 64 Failure to lodge documents, which outlined ASIC’s approach to companies that failed to lodge certain documents, and RG 40 Good transaction fee disclosure, which related to disclosure practices for transaction accounts offered by banks, credit unions and building societies.
ASIC has also made minor and technical updates to RG 104 AFS licensing: Meeting the general obligations and RG 205 Credit licensing: General conduct obligations to improve accuracy and clarity, without changing underlying policy.
ASIC consults on raising net tangible assets requirements for fund operators
ASIC has released a consultation on potential changes to the net tangible assets (NTA) requirements applying to responsible entities of registered managed investment schemes. The consultation focuses on whether the existing financial thresholds remain appropriate. The proposals would amend the current NTA settings in ASIC’s financial requirements instrument for responsible entities, investor directed portfolio services operators and corporate directors of retail corporate collective investment schemes. ASIC is seeking feedback on options to increase the NTA requirement for responsible entities and to consider similar changes for other fund operators, with a view to informing future regulatory work. Submissions on the consultation close on 17 April 2026.
ASIC consults on renewal of relief for managed discretionary account services
ASIC has launched a consultation on whether to extend and potentially amend long‑standing regulatory relief for managed discretionary account (MDA) services. The consultation relates to ASIC Corporations (Managed Discretionary Account Services) Instrument 2016/968 (Cth), which is due to sunset on 1 October 2026. ASIC is seeking feedback on whether the relief should be extended and, if so, whether the policy settings or conditions should be substantively changed or simplified. Submissions close on 28 April 2026.
ASIC remakes relief for generic financial calculators
ASIC has remade its longstanding relief for providers of generic financial calculators, extending the operation of the regime for a further five years. The updated relief is contained in ASIC Corporations (Generic Calculators) Instrument 2026/41 (Cth), which replaces a 2016 instrument due to sunset and will now apply until 1 April 2031.
ASIC issues new instrument for employee entitlement schemes
ASIC has issued a new legislative instrument setting out its updated regulatory approach to employee entitlement schemes, replacing long‑standing relief due to expire on 1 April 2026. The ASIC Corporations (Employee Entitlement Schemes) Instrument 2026/199 (Cth) was made on 27 March 2026 and commences from 1 April 2026.
Under the new instrument, operators of employee entitlement schemes must apply for an Australian financial services (AFS) licence by 1 September 2026. Conditional relief continues to apply in the interim from various Corporations Act requirements, including managed investment scheme registration, product disclosure and hawking provisions, provided specified conditions are met. Transitional arrangements allow operators that lodge an AFS licence application by the deadline to continue operating while ASIC considers the application.
ASIC remakes relief instruments for AFS licensees and overseas banks
ASIC has remade key legislative instruments providing ongoing regulatory relief for AFS licensees and certain foreign entities. The new instruments replace relief measures that were due to sunset. The ASIC Corporations (Foreign Licensees and ADIs) Instrument 2026/121 remakes and continues relief for foreign companies that are AFS licensees, including exemptions from certain record‑keeping and financial reporting obligations under the Corporations Act. The instrument also preserves relief for foreign authorised deposit‑taking institutions from holding an AFS licence when dealing in derivatives and foreign exchange contracts on their own behalf.
ASIC has also extended the operation of relief relating to the treatment of lease assets for financial services licensees by a further five years, allowing eligible licensees to include right‑of‑use lease assets when calculating financial resource requirements. The remade instruments largely preserve the existing regulatory settings, with only minor technical updates following consultation in late 2025.
ASIC remakes technical relief and credit disclosure instruments
ASIC has remade two legislative instruments providing technical relief for AFS licensees and updating prescribed consumer credit disclosures, replacing instruments scheduled to sunset on 1 April 2026.
The ASIC Corporations (Miscellaneous Technical Relief) Instrument2026/115 (Cth) has been remade largely without change, continuing long‑standing machinery and technical relief across various provisions of the Corporations Act. The relief covers, among other things, exemptions from AFS licensing in specific circumstances and facilitates the lodgement and publication of supplementary or replacement disclosure documents.
ASIC has also remade, in part, the ASIC Credit (Updated details for prescribed disclosure) Instrument 2026/122 (Cth), preserving targeted relief to keep certain consumer credit disclosures current. The updates reflect the repeal of obsolete provisions in the National Consumer Credit Protection Regulations2010 (Cth) and remove outdated references in disclosures for products such as reverse mortgages and small‑amount credit contracts.
INSURANCE
ASIC eases PDS requirements for co‑insured strata policies
ASIC has introduced targeted relief to streamline Product Disclosure Statement (PDS) requirements for residential strata insurance policies provided by more than one insurer. The changes, announced on 11 March 2026, apply where multiple insurers jointly underwrite a single strata property because the risk is too large for a single insurer. Under the relief, only the lead insurer will be required to issue a PDS.
APRA stress test highlights risks from widening home insurance protection gap
The Australian Prudential Regulation Authority (APRA) has released its Insurance Climate Vulnerability Assessment, examining how climate change could affect the affordability and uptake of home insurance and, in turn, Australia’s financial system resilience. The prudential stress test, published on 24 March 2026, explores two severe but plausible climate‑related scenarios out to 2050: one driven by higher physical risks from weather events, and another by economic disruption linked to the transition to a lower‑emissions economy.
APRA found that climate pressures on premiums could significantly widen the home insurance protection gap. While around one in seven Australian homes are currently uninsured, this could rise to around one in four by 2050 under both scenarios, equating to an additional one million uninsured homes.
Government and insurers agree principles to support insurance affordability
The Federal Government and the insurance industry have agreed a set of guiding principles aimed at improving the availability and affordability of insurance in Australia. The principles were released on 13 March 2026 through the Hazards Insurance Partnership, which brings together the Treasury, insurers and reinsurers to address pressures in the insurance market. The Guiding Principles for resilience investment are intended to support more consistent prioritisation of investment that reduces risk and to improve recognition of effective risk‑reduction measures in insurance pricing and availability.
PAYMENTS
Treasury releases tranche 1 draft payments licensing legislation
The Treasury has opened consultation on its tranche 1 draft legislation to implement a new regulatory framework for payment service providers. The exposure package sets out proposed definitions of “regulated payment functions” and establishes licensing obligations, including requirements for certain providers to safeguard payment‑related money. The drafts also address exemptions and exclusions, unclaimed monies, a new prudential framework, and a rule‑making power to support a mandatory, revised ePayments Code. Transitional arrangements are included. The tranche 1 package incorporates feedback from an earlier “tranche 1a” consultation held in October–November 2025, which focused on core concepts and licensing obligations. Consultation closes on 9 April 2026.
Card surcharge reforms
The Treasurer has announced that credit and debit card surcharges will be removed from card payments in Australia from 1 October 2026, following regulatory action by the Reserve Bank of Australia (RBA). The announcement was made on 31 March 2026 alongside the release of the RBA’s conclusions on merchant card payment costs and surcharging. Under a three‑part reform package, the RBA will amend the rules of the eftpos, Mastercard and Visa networks to allow card schemes to ban surcharging in merchant contracts. The RBA will also lower interchange fee caps on domestic credit, debit and prepaid cards, introduce caps for foreign‑issued cards used in Australia, and require greater transparency around card scheme and acquiring fees.
The Federal Government estimates Australians currently pay around $1.6 billion a year in card surcharges, with businesses incurring significant compliance and processing costs. The reforms are expected to reduce merchant fees by around $910 million annually, with proportionately larger benefits for small businesses. The RBA and ACCC will oversee implementation, with ACCC guidance to be updated to reflect the changes.
PRIVACY AND DATA
OAIC issues updated privacy guidance for AML/CTF reporting entities
The Office of the Australian Information Commissioner (OAIC) has published updated guidance on how reporting entities should manage personal information when complying with the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (Cth) (AML/CTF Act). The guidance reflects forthcoming anti-money laundering and counter-terrorism financing (AML/CTF) reforms that expand both the scope of regulated entities and the application of the Privacy Act 1988 (Cth) (Privacy Act).
From 31 March 2026, revised AML/CTF obligations apply to existing reporting entities. From 1 July 2026, “tranche 2” entities - including real estate professionals, dealers in precious metals and stones, and various professional advisers - will become subject to AML/CTF obligations and the Privacy Act, regardless of turnover. The small business exception from the Privacy Act will not apply to these entities in relation to AML/CTF information.
The OAIC emphasises that reporting entities may collect, use and disclose personal and sensitive information as required for AML/CTF purposes, but must limit collection to what is reasonably necessary and ensure appropriate security and transparency. The guidance discourages retention of full identity documents unless required by law and highlights the need for clear privacy policies and compliant collection notices.
OAIC flags tougher triage of individual privacy complaints
The OAIC has published guidance outlining a revised approach to the handling of individual privacy complaints. Alongside a broader shift towards enforcement activity, the OAIC will apply more robust thresholds when deciding which complaints warrant investigation.
The OAIC notes that not all complaints will proceed to investigation, particularly where issues are already the subject of broader regulatory action, relate to ongoing investigations (including notifiable data breaches), or do not meet a threshold of seriousness when assessed against competing regulatory priorities. The guidance emphasises the importance of complainants first raising issues with the relevant organisation, and in some sectors, using approved external dispute resolution schemes, before approaching the OAIC.
OAIC issues guidance on privacy‑compliant age assurance practices
The OAIC has published new guidance on the use of age assurance technologies, as online services increasingly introduce age checks as a condition of access. The guidance was released on 17 March 2026, three months after the commencement of the Social Media Minimum Age scheme and shortly after new age assurance obligations took effect under eSafety‑registered Age‑Restricted Material Codes on 9 March 2026. The guidance is intended to assist entities in identifying and managing privacy risks when selecting and implementing age assurance methods.
OAIC releases exposure draft of Children’s Online Privacy Code
The OAIC has released an exposure draft of the proposed Children’s Online Privacy Code, commencing consultation on a new set of online privacy obligations focused on children and young people following passage of the Privacy and Other Legislation Amendment Act 2024 (Cth). The draft Code would require agencies and organisations to consider the best interests of children when collecting, using or disclosing their personal information online.
Proposed obligations include limits on targeted advertising involving children, stronger consent and transparency requirements, age‑appropriate privacy notices, and new rights for children to request deletion of their personal information. The Code would apply to a broad range of online services likely to be accessed by children, including apps, games, streaming platforms and educational services, extending beyond social media alone. Consultation closes on 5 June 2026.
PRUDENTIAL
APRA clarifies treatment of liquid assets during RBA books‑closed period
APRA has issued a letter to authorised deposit‑taking institutions (ADIs) subject to the minimum liquidity holdings (MLH) requirement and to providers of purchased payment facilities (PPFs) clarifying the treatment of eligible liquid assets under APRA’s liquidity standards.
The clarification responds to an RBA announcement that securities will be removed from the RBA’s published list of eligible repurchase agreement securities once they enter their books‑closed period to maturity. APRA states that debt securities which were initially eligible for RBA repurchase agreements may continue to be treated as eligible liquid assets for the purposes of Prudential Standard APS 210 Liquidity and APS 610 Prudential Requirements for Providers of Purchased Payment Facilities if they cease RBA eligibility solely because they have entered their books‑closed period. In all other circumstances, securities must remain eligible for RBA repurchase to count towards MLH or PPF liquidity requirements.
APRA signals proposed changes to bank capital and liquidity settings
APRA has announced it will consult on a package of proposed reforms to bank capital and liquidity frameworks, following a review of whether its prudential settings remain fit for purpose in a more volatile operating environment. Proposed measures include potential changes to liquidity requirements for larger banks, including a new Pillar 2 liquidity framework, and a more risk‑sensitive liquidity regime for smaller banks.
APRA highlights structural pressures facing mutual banks
APRA has published remarks by Member Therese McCarthy Hockey delivered to the 2026 Customer Owned Banking Association CEO and Directors Forum. The speech notes that while the mutual banking sector continues to record strong aggregate growth in assets, deposits and housing lending, consolidation is accelerating and a widening structural divide is emerging between larger mutuals and smaller institutions.
The remarks highlight that larger mutual banks have benefited from scale, including lower cost‑to‑income ratios and stronger profitability, while many smaller mutuals face increasing pressure from rising costs, digital transformation and more complex risk environments. APRA flagged concerns about the long‑term viability of some smaller business models if these challenges are not addressed.
The speech also emphasised governance, cost control and risk management as key differentiators among better‑performing smaller mutuals, and raised issues around reliance on third‑party service providers, operational resilience and the cautious adoption of advanced technologies such as artificial intelligence.
APRA decommissions Direct to APRA data submission system after security review
APRA has decommissioned its legacy Direct to APRA (D2A) data submission system for entity access following the identification of security vulnerabilities during a routine penetration test. The system was taken offline on 20 March 2026, a day after the vulnerabilities were detected. APRA stated that it is not aware of any security breach or exploitation of its systems.
As a precaution, APRA has accelerated its program to migrate all regulatory data collections to the APRA Connect portal, which is intended to become the single interface for data submissions. APRA advised organisations that previously used D2A to uninstall the D2A client and review their internal security controls. During the interim, entities with reporting obligations are required to prepare submissions as usual and arrange secure lodgement directly with APRA. APRA Connect will progressively replace D2A and is expected to offer enhanced security and functionality.
APRA finalises capital changes for longevity products
APRA has finalised amendments to its capital framework for longevity products, including annuities, aimed at supporting the development of retirement income offerings while maintaining prudential safeguards. The changes were announced on 31 March 2026 and will take effect from 1 July 2026.
The centrepiece of the reforms is an option for insurers to apply an advanced illiquidity premium when calculating capital requirements for longevity products. This approach is intended to better reflect the long‑term, predictable nature of longevity liabilities and improve alignment between assets and liabilities. APRA has coupled the new option with additional governance, reporting and asset composition requirements to manage associated risks. APRA has also released a draft reporting template for insurers using the new approach and is seeking feedback by 12 May 2026.
APRA consults on remaking Level 3 conglomerate prudential standards
APRA has released a consultation on the proposed remaking of its Level 3 conglomerate prudential standards, which apply to groups that operate across more than one regulated financial sector. The consultation was published on 31 March 2026. The existing Level 3 standards are due to sunset and APRA is proposing to remake them with only minor amendments. The changes are intended to ensure the standards remain current and continue to operate as intended, rather than to introduce substantive policy reform. Consultation closes on 29 May 2026.
SUPERANNUATION
Consultation on restricting super death benefits for family violence perpetrators
The Treasury has opened a consultation on policy options to prevent people who have committed family and domestic violence from receiving the superannuation death benefits of their victims. The consultation notes that, under current law, trustees may be required to pay death benefits to a perpetrator, producing outcomes described as unfair for victim‑survivors and their families. The consultation paper canvasses possible amendments to superannuation law aimed at excluding perpetrators from receiving benefits, promoting fairer and more consistent distribution of death benefits in relevant cases, and avoiding unnecessary delays in payment. It seeks views on how any changes should operate in practice. Submissions can be made until 15 April 2026.
Superannuation tax and LISTO reforms become law; consultation on regulations
The Treasury Laws Amendment (Building a Stronger and Fairer Super System) Act 2026 (Cth) has received Royal Assent and is now law, completing the Federal Government’s latest package of superannuation reforms.
The legislation expands the Low Income Superannuation Tax Offset (LISTO). The LISTO changes are intended to increase superannuation outcomes for around 1.3 million people, including approximately 750,000 women and 550,000 workers under 30. Affected workers could receive up to $810 per year in additional super contributions, depending on income and contributions.
The reforms also change the taxation of large superannuation balances by tightening the targeting of concessional tax treatment for balances above $3 million. The Treasury estimates the higher‑balance measure will apply to fewer than 0.5% of Australians in 2026–27.The Treasury has also released draft regulations to support the operation of the Act. Submissions can be made until 7 April 2026.
APRA launches consultation on retirement reporting framework
APRA has commenced industry consultation on the implementation of the Government’s Retirement Reporting Framework, a key element of a broader package of reforms aimed at improving outcomes in the retirement phase of superannuation. Under the framework, APRA will be responsible for collecting and publishing data intended to support greater transparency and comparability of retirement products and outcomes. The consultation sets out APRA’s proposed approach to implementing the framework and seeks feedback on whether that approach is appropriately calibrated and proportionate. Submissions are due by 3 June 2026.
APRA and ATO warn super funds on payday super readiness
APRA has written to all Registrable Superannuation Entity (RSE) licensees on the industry’s readiness for the introduction of payday superannuation, which commences on 1 July 2026. The letter follows the passage of payday super legislation in November 2025 and the release of supporting regulations in February 2026.
From commencement, RSE licensees will generally be required to receive and allocate employer contributions, or return them, within three business days. This represents a significant acceleration on current timeframes. The reforms will be supported by the new SuperStream 3.0 standard, also commencing on 1 July 2026, including enhanced verification processes and the use of the New Payments Platform. The Australian Taxation Office (ATO), as lead regulator, and APRA are jointly monitoring readiness. The letter notes concerns that a material number of RSE licensees are not yet on track to deliver all elements of SuperStream 3.0, particularly the member verification service. APRA expects contribution processing to be treated as a critical operation under Prudential Standard CPS 230 Operational Risk Management.
Treasury consults on draft regulations for superannuation advertising ban
The Treasury has released draft regulations for consultation to support new legislative restrictions on the advertising of superannuation products to new employees during onboarding. The consultation opened on 27 March 2026 and follows the passage of the Treasury Laws Amendment (Supporting Choice in Superannuation and Other Measures) Act 2026 (Cth).
The legislation introduces a ban on promoting superannuation products to new employees at the point of commencement, subject to limited exceptions. During onboarding, employers may only show employees their existing stapled fund, the employer’s default fund, or eligible MySuper products. The draft regulations set out detailed requirements for advertising MySuper products, including rules on labelling, prominence, advertising arrangements and mandatory disclosures. Treasury is seeking submissions on the proposed regulatory settings. Consultation closes on 17 April 2026.
ASIC extends intra‑fund transfer relief for superannuation trustees
ASIC has extended long‑standing relief for superannuation trustees in relation to intra‑fund transfers, pushing the expiry date out by a further five years to 1 April 2031.
Bill introduced to allow access to offenders’ super to satisfy compensation orders
The Federal Government has introduced legislation to prevent convicted child sexual abusers from using superannuation to avoid paying court‑ordered compensation to victims and survivors. The Treasury Laws Amendment (The Survivors Law) Bill 2026 (Cth) was introduced on 25 March 2026. If passed, the Bill will allow victims and survivors of child sexual abuse to seek a court order to access additional personal or salary sacrifice superannuation contributions made by an offender, where a related compensation order has remained unpaid for at least 12 months. Victims will be able to apply to the ATO to identify potentially accessible superannuation before seeking a court order, subject to safeguards.
The reforms will also amend the Bankruptcy Act 1966 (Cth) so that compensation debts arising from child sexual abuse are not extinguished by bankruptcy. Unpaid historical compensation orders made before commencement will be covered, provided they remain legally enforceable and relate to a criminal conviction or finding of guilt.
AML/CTF
AML/CTF reforms commence
Major changes to the AML/CTF regime commenced on 31 March 2026, marking the formal start of the next phase of AML/CTF reforms for both newly regulated and existing reporting entities. From this date, enrolment with AUSTRAC opened for ‘tranche 2’ entities newly brought into the regime, including legal and accounting professionals, real estate practitioners, conveyancers, dealers in precious metals and stones, and trust and company service providers. Tranche 2 entities will be fully subject to the AML/CTF Act from 1 July 2026.
The commencement also affects current reporting entities, with amendments to the Anti‑Money Laundering and Counter‑Terrorism Financing Rules 2025 (Cth) (AML/CTF Rules) and updated regulatory settings taking effect.
AML/CTF Amendment Bill introduced to expand AUSTRAC powers
The Anti‑Money Laundering and Counter‑Terrorism Financing Amendment Bill 2026 (Cth) was introduced into Parliament on 12 March 2026. The Bill proposes targeted amendments to the AML/CTF Act. Key measures would allow the Chief Executive Officer of the Australian Transaction Reports and Analysis Centre (AUSTRAC) to restrict or prohibit reporting entities from using specified high‑risk mechanisms when providing designated services. The Bill also updates the definition of “financing of terrorism” to reference new offences relating to the financing of a state sponsor of terrorism, alongside making a range of technical amendments.
AUSTRAC updates AML/CTF Rules
AUSTRAC has made targeted amendments to the AML/CTF Rules to support the operation of the Anti‑Money Laundering and Counter‑Terrorism Financing Amendment Act 2024 (Cth) and address issues identified since the Rules were first tabled in Parliament in August 2025. The amendments were made on 24 March 2026.
The amendments include a redesigned reporting group framework, introducing an “opt‑out” model under which related entities are grouped by default unless they formally decline. AUSTRAC has also made technical changes to customer due diligence requirements, enrolment and registration information, annual compliance reporting periods, and the operation of the travel rule. Monitoring for prohibited hate group offences has been added to the safe harbour unusual transaction framework.
AUSTRAC updates AML/CTF exemption rules
AUSTRAC has made amendments to the AML/CTF exemption rules, the Anti-Money Laundering and Counter-Terrorism Financing (Class Exemptions and Other Matters) Rules 2007 (Cth). The amendments were made on 24 March 2026.
The amendments provide regulatory relief for certain low‑risk activities, including small cash withdrawals at ATMs, limited virtual asset withdrawals, and specific open‑loop gift card arrangements, as well as excluding some service providers from the regime.
AML/CTF transitional rules made
AUSTRAC made the Anti‑Money Laundering and Counter‑Terrorism Financing Transitional Rules 2026 (Cth) on 27 March 2026.
The transitional rules provide existing reporting entities with a three‑year transition period, from 31 March 2026 to 31 March 2029, to move from existing applicable customer identification procedures to the new initial customer due diligence framework. The rules also provide extended or staggered timeframes for certain other obligations, including reporting of internation value transfer services.
AUSTRAC website overhaul
AUSTRAC updated its website to support the March 2026 rollout of Australia’s AML/CTF reforms. The timing aligns with the 31 March 2026 commencement of new obligations for existing reporting entities and the opening of enrolment and registration for tranche 2 entities. The updates are intended to improve usability and access to regulatory guidance as the reformed regime is implemented.
AUSTRAC publishes guidance on new compulsory examination powers
AUSTRAC has published guidance explaining its new compulsory examination powers under section 172A of the AML/CTF Act. The section 172A power, introduced as part of recent AML/CTF reforms, allows AUSTRAC to issue a written notice requiring a person to attend an examination, answer questions on oath or affirmation, and produce documents.
The guidance sets out what a section 172A notice must contain, what will typically occur during an examination, and practical matters such as timing, location and legal representation. It also notes that receiving a notice does not, of itself, imply wrongdoing.
AUSTRAC updates suspicious matter reporting guidance
AUSTRAC has published an updated Suspicious Matter Reporting Reference Guide, consolidating and clarifying guidance on when and how reporting entities should submit suspicious matter reports (SMRs). The guide explains the legal obligation to report suspicions relating to money laundering, terrorism financing and other serious offences, and provides practical assistance on identifying suspicious behaviour, forming a suspicion and meeting statutory reporting timeframes. It also includes updated examples, indicators and explanations of how AUSTRAC uses SMR information to identify patterns, risks and emerging threats. The updated guide is designed to be used by both existing reporting entities and newly regulated tranche 2 businesses.
DISPUTES AND ENFORCEMENT
ASIC launches public dashboard on internal dispute resolution data
ASIC has launched a new public, interactive dashboard publishing firm‑level internal dispute resolution (IDR) complaints data for the financial services sector. The dashboard allows users to compare complaints reported by individual financial firms, including by product type such as home loans, credit cards, insurance and financial advice.
AFCA updates rules and operational guidelines
The Australian Financial Complaints Authority (AFCA) has published updated Rules and Operational Guidelines, which took effect on 12 March 2026 following consultation during 2025 and approval by ASIC. The changes follow 39 formal submissions and broader engagement with industry, consumer groups and paid representatives.
A central feature of the changes is an expansion of AFCA’s jurisdiction to allow it to investigate certain scam‑related complaints involving receiving banks, including cases where accounts or credit facilities were opened without a consumer’s consent. The expanded jurisdiction applies even where the complainant is not a customer of the receiving bank and reflects revisions to AFCA’s authorisation conditions made by the Federal Government. The change broadens AFCA’s oversight beyond a consumer’s own bank, enabling complaints about the role of receiving banks in the movement of scam funds and supporting a more coordinated approach to scam prevention ahead of the Government’s Scams Prevention Framework.
AFCA has also introduced a new power to publish the names of financial firms that fail to comply with AFCA determinations, imposed new obligations on paid representatives, and removed legacy complaint provisions from the rules. In addition, a minor clarification has been made to the Operational Guidelines to align the interpretation of “small business credit facility” with the existing AFCA Rules.
AFCA issues response guide for super insurance cancellation complaints
AFCA has published a new External Dispute Resolution (EDR) Response Guide dealing specifically with superannuation complaints about insurance cancellation. The guide was released on 24 March 2026. The guide is intended to support superannuation trustees when responding to complaints that progress to AFCA after failing to resolve internally. According to AFCA, disputes about insurance cancellation are often governed by specific legislative requirements and can be resolved more efficiently where trustees provide key information early in the process. The response guide sets out the information AFCA expects trustees to provide to enable a timely assessment of the merits of a complaint.
AFCA publishes details of expelled financial firm members
AFCA has published details of more than 800 members that have been expelled from the schemes. AFCA noted that expelled members that are still legally required to hold AFCA membership may apply for reinstatement, subject to rectifying the issues that led to expulsion and approval by the AFCA board or its delegate.
AFCA releases e‑learning module on proximate cause in insurance disputes
AFCA has published a new e‑learning module explaining how it approaches complaints that turn on issues of proximate cause, a concept commonly contested in general insurance disputes. The module was released on 19 March 2026 and is available to AFCA members through its website.
Proximate cause refers to the dominant or effective cause of loss or damage and is often central to disagreements between insurers and consumers about whether a claim is covered. AFCA noted that many complaints involve differing views on whether damage arose from a covered event or from an excluded cause.
Federal Court finds Star executives breached duties; non‑executive directors cleared
The Federal Court has found that two former senior executives of The Star Entertainment Group Ltd (The Star) breached their duties in connection with the management of money‑laundering and criminal risk at the group’s casinos. The Court held that former chief executive and managing director Matthias Bekier, and former chief legal and risk officer Paula Martin, breached their duty of care and diligence under section 180 of the Corporations Act. The findings relate to their handling of AML/CTF risks associated with the junket operator Suncity, deficiencies identified in an audit report, and the impermissible use of China UnionPay cards by casino customers. The Court dismissed ASIC’s case against seven former non‑executive directors, finding they did not breach their duties. A further hearing will be held to determine penalties and possible disqualification orders against Mr Bekier and Ms Martin.
Federal Court allows ASIC to proceed against MWL despite liquidation
ASIC’s proceedings against MWL Financial Services Pty Ltd (MWL), its former director Nicholas Maikousis and Imperial Capital Group Australia Pty Ltd (Imperial) cleared a key procedural hurdle on 5 March 2026. The Federal Court granted ASIC leave to continue its case against MWL, notwithstanding the firm’s liquidation.
The regulator alleges that MWL advisers provided inappropriate personal advice encouraging clients to roll their superannuation into the Shield Master Fund (Shield), with Imperial acting as a lead generator and Mr Maikousis involved in the alleged contraventions. MWL entered liquidation in November 2025, requiring ASIC to obtain the Court’s permission to proceed. Justice Bennett’s orders allow the proceedings to continue, but on condition that ASIC does not enforce any pecuniary penalties or costs orders against MWL without further leave of the Court. The substantive allegations against all defendants remain to be determined.
In related news, ASIC has banned former MWL adviser Raluca Terheci from providing financial services for six years, following findings about advice linked to Shield. The banning order prohibits Ms Terheci from providing financial services, controlling a financial services business or performing any role involved in such a business.
Federal Court finds Macquarie breached Corporations Act over Shield investments
The Federal Court has declared that Macquarie Investment Management Limited (MIML) contravened the Corporations Act by failing to place the Shield investment options on a watch list for heightened monitoring. MIML, a Macquarie Group Limited (Macquarie) subsidiary and trustee of the Macquarie Superannuation Plan, oversaw around $321 million invested in Shield by approximately 3,000 members between 2022 and 2023. The Court found the fund should have been subject to closer scrutiny, including enhanced reporting and due diligence. ASIC did not seek a pecuniary penalty, citing exceptional circumstances, including Macquarie’s agreement to compensate affected members in full, less withdrawals. About $321 million was paid in September 2025.
Remedy Housing officers sentenced for dishonesty offences
Three former officers of Remedy Housing Pty Ltd (Remedy Housing) have been sentenced following convictions for dishonesty offences arising from a scheme promoting so‑called interest‑free mortgages. On 10 March 2026, the County Court of Victoria sentenced Brent Smith to six years and two months’ imprisonment, Mahmoud Khodr to five years’ imprisonment, and Fue Mano to 30 months’ imprisonment, partly suspended.
The court found that between 2019 and 2021, Remedy Housing collected deposits from around 107 customers totalling $1.83 million, falsely claiming it could provide interest‑free mortgages within 12 months or refund deposits in full. In reality, the company had no investors, never provided any mortgages, and customer funds were used to operate the scheme or misappropriated for personal use. Mr Smith and Mr Khodr jointly misappropriated more than $750,000. The court also made reparation orders in favour of affected customers.
Court imposes $35 million penalty on Macquarie Securities for short sale misreporting
The NSW Supreme Court has ordered Macquarie Securities (Australia) Limited (Macquarie Securities) to pay a $35 million penalty for widespread failures in its short sale reporting. The Court found that, between December 2009 and February 2024, Macquarie Securities failed to correctly report at least 73 million short sales, with ASIC estimating that between 298 million and 1.5 billion short sales were misreported over the period. The breaches arose from serious deficiencies in the firm’s systems, processes and controls, many of which persisted undetected for more than a decade despite internal reviews.
The Court also found that Macquarie Securities engaged in misleading conduct and failed to maintain adequate risk management, supervisory arrangements and technical resources. In addition to the pecuniary penalty, the firm must engage an independent expert to review its short sale and regulatory reporting systems and pay ASIC’s costs.
High Court dismisses Sunshine Loans appeal on judge recusal
The High Court has unanimously dismissed an appeal by Sunshine Loans Pty Ltd (Sunshine Loans) concerning the recusal of the trial judge in ASIC’s civil penalty proceedings under the National Consumer Credit Protection Act 2009 (Cth). The appeal followed an earlier Full Federal Court decision that overturned Justice Derrington’s decision to step aside from determining penalty after finding Sunshine Loans liable for charging unlawful fees under small amount credit contracts.
At first instance in April 2024, the Federal Court found Sunshine Loans had contravened the National Credit Code by charging impermissible amendment fees across hundreds of thousands of contracts. After the liability judgment, Sunshine Loans sought the judge’s recusal on the basis of apprehended bias arising from credibility findings and language used in the reasons. Justice Derrington initially agreed to recuse himself, but ASIC successfully appealed that decision.
The High Court held that a judge is not required to disregard views formed at the liability stage when determining penalty, rejecting arguments that the language used gave rise to apprehended bias. The matter will now return to Justice Derrington for determination of penalty.
Binance Australia Derivatives fined $10 million over client misclassification
The Federal Court has ordered Oztures Trading Pty Ltd (trading as Binance Australia Derivatives) (Binance) to pay a $10 million pecuniary penalty after finding widespread failures in its client onboarding and classification processes. The orders were made on 27 March 2026 following admissions by Binance. Between July 2022 and April 2023, Binance misclassified more than 85% of its Australian client base as wholesale clients, exposing 524 retail investors to high‑risk crypto derivative products without the protections required under the Corporations Act. The misclassification resulted in around $8.66 million in trading losses and $3.89 million in fees.
The Court accepted that Binance’s failures included inadequate controls, poor staff training and deficient compliance oversight, including allowing unlimited attempts at a “sophisticated investor” quiz. The penalty is in addition to approximately $13.1 million in compensation paid to affected clients in 2023. Binance’s AFS licence was cancelled in April 2023.