Financial Services and Credit Monthly Update November 2025

CONSUMER CREDIT

ASIC flags risks in motor vehicle finance sector

The Australian Securities and Investments Commission (ASIC) is reviewing the motor vehicle finance industry and has uncovered significant shortcomings in lenders’ oversight of brokers and dealerships. The probe, launched after a surge in complaints and reports of excessive costs, found establishment fees as high as $9,000 on loans of $49,000 and that nearly half of consumers who defaulted did so within six months. For repossessed vehicles, almost 90% of borrowers still owed more than half their original loan amount.

ASIC has issued tailored action letters to participating lenders, recommending improvements in governance, intermediary oversight, hardship communication, and product risk frameworks. The review also highlighted concerns about unaffordable lending practices and poor consumer outcomes. Detailed findings and industry responses will be published in 2026. ASIC has ongoing proceedings against several dealerships and lenders for alleged misconduct, including unlicensed lending and breaches of responsible lending obligations.

Government implements 20% cut to student debt

The Federal Government has begun implementing a one-off 20% reduction in student debt, affecting more than three million Australians. The measure, which will wipe nearly $16 billion in total, is being rolled out by the Australian Tax Office (ATO) and applies automatically to HELP, VET Student Loans, Australian Apprenticeship Support Loans, Student Startup Loans, and other student loans.

For someone with the average HELP debt of $27,600, the cut equates to about $5,520. The reduction is backdated to 1 June 2025, prior to the last indexation. Alongside the debt cut, the income threshold for compulsory repayments has been raised from $54,435 to $67,000, and minimum repayment amounts have been lowered, saving someone earning $70,000 around $1,300 annually. Combined with earlier indexation reforms, the Federal Government estimates close to $20 billion will be removed from student debt overall.

CONSUMER PROTECTION

ASIC to overhaul Moneysmart platform following consumer research

ASIC has announced plans to refresh its Moneysmart platform after research revealed low public awareness despite strong engagement among users. Speaking at the Ecstra Financial Wellbeing Summit on 6 November 2025, Commissioner Alan Kirkland said only 4% of Australians could recall Moneysmart unprompted, although 93% of those who used it reported a positive experience. The research also found that just 26% of adults consider themselves “very knowledgeable” about financial matters, while 75% want to know more.

The revamp will include a new strategy over three years, expanded social media activity, and targeted resources for retirees, supported by government funding. Recent updates include a redesigned retirement planner and a forthcoming “retirement hub.” Moneysmart attracted 11.7 million visitors last financial year.

Consultation opens on Scams Prevention Framework designations

The Federal Government has launched a public consultation on draft designations for banks, telecommunications providers, and certain digital platforms under the Scams Prevention Framework (SPF). These sectors are slated to become the first regulated under the SPF by mid‑2026. The consultation seeks feedback on whether the draft designations correctly capture relevant services and on proposed external dispute resolution arrangements, including authorising the Australian Financial Complaints Authority (AFCA) as the single body for unresolved complaints.

A position paper has also been released to invite input on policy ideas for sector-specific codes and rules, which will undergo formal consultation in 2026. Mandatory codes will impose tailored obligations on each sector to address vulnerabilities exploited by scammers.

The SPF, legislated in February, introduces strong penalties and a coordinated approach to scam prevention. Submissions on the current consultation close on 5 January 2026.

CORPORATE

Consultation on remake of fundraising and mergers and acquisitions relief

ASIC has opened a consultation on remaking 18 legislative instruments that provide relief from various fundraising and mergers and acquisitions provisions in the Corporations Act 2001 (Cth) (Corporations Act). The instruments, which cover Chapters 6, 6C, 6D and Part 7.9 of the Corporations Act, are due to sunset on 1 April 2026. ASIC proposes to remake them largely unchanged for five years, with minor updates for clarity and consistency.

General amendments include simplified explanatory outlines, updated terminology (such as replacing “prescribed financial market” with “declared financial market”), and removal of obsolete references. Specific changes include adding Belgium, Norway and Portugal to foreign bid relief, and technical adjustments to instruments dealing with real estate companies. Submissions are due by 19 December 2025.

Consultation on measures to tackle coerced directorships

On 26 November 2025, the Treasury opened consultation on proposals to curb financial abuse through coerced directorships, where individuals are forced or deceived into becoming company directors, leaving them liable for debts while perpetrators control the business. The options under consideration include stricter consent requirements for director appointments, extending the timeframe to respond to Director Penalty Notices, providing victim-survivors with defences to insolvency-related duties, and introducing mechanisms to hold perpetrators accountable. The consultation seeks feedback on the feasibility and effectiveness of these measures. Submissions close on 24 December 2025.

Review of Small Business Ombudsman underway

The Treasury has opened a consultation on the functions and operations of the Australian Small Business and Family Enterprise Ombudsman (ASBFEO). The review, which runs from 22 November 2024 to 10 January 2025, seeks feedback on whether the ASBFEO is effectively supporting small businesses and family enterprises. Stakeholders invited to respond include small business owners, franchisees, family enterprises, and representative organisations, including those serving culturally and linguistically diverse, First Nations, regional, and women’s communities. A consultation paper has been released outlining key questions on the ASBFEO’s role, performance, and future priorities. Submissions will inform recommendations on whether changes are needed to improve accessibility and effectiveness.

DIGITAL ASSETS

Digital asset licensing Bill introduced

On 26 November 2025, the Federal Government introduced the Corporations Amendment (Digital Assets Framework) Bill 2025 to Parliament. The Bill creates two new financial product categories: digital asset platforms and tokenised custody platforms, both of which will require an Australian financial services (AFS) licence.

Licensees will be subject to core obligations under the Corporations Act, including acting efficiently, honestly and fairly, prohibitions on misleading conduct, clear disclosure of asset custody arrangements, governance and risk controls, and access to dispute resolution and compensation schemes. Tailored requirements will apply to reflect the unique risks of these platforms, while smaller operators which hold less than $5,000 per customer and process under $10 million annually will be exempt. The reforms aim to close regulatory gaps exposed by overseas collapses and bring digital asset services within Australia’s financial law framework.

FINANCIAL ADVICE

ASIC flags risks in SMSF advice

ASIC’s latest review has raised concerns about the quality of financial advice given to Australians establishing self-managed super funds (SMSFs). The regulator examined 100 advice files and found that 62 failed to demonstrate compliance with the best interests duty, while 27 raised significant concerns about potential client detriment. Only 38 files showed full compliance.

The report highlights systemic issues, including advisers recommending SMSFs without properly assessing suitability and conflicts of interest not being managed effectively. Even pre-vetting processes failed to prevent non-compliant advice in many cases. ASIC has outlined eight action points for advisers and four for licensees to improve practices and warned that enforcement action may follow. SMSFs account for nearly a quarter of Australia’s $4.3 trillion superannuation sector, with 41,980 new funds established in the year to June 2025. ASIC’s findings underscore the risks as the sector continues to grow.

ASIC consults on extension of calculator relief

ASIC has proposed remaking its legislative instrument that exempts providers of generic financial calculators from certain licensing and disclosure obligations under the Corporations Act. The current instrument, ASIC Corporations (Generic Calculators) Instrument 2016/207, is due to sunset on 1 April 2026. The relief allows providers to offer calculators that perform general numerical calculations about financial products (excluding superannuation) without promoting specific products, without holding an advice authorisation. ASIC considers the instrument effective and intends to retain it with minor amendments, including simplification and aligning it with the reportable situations regime. A draft instrument has been released for consultation. Submissions were due by 1 December 2025.

FINANCIAL MARKETS

ASIC unveils roadmap for capital markets growth

ASIC has released a roadmap aimed at strengthening Australia’s public and private capital markets. The report, Advancing Australia’s evolving capital markets (REP 823), outlines a roadmap to attract new capital flows, embrace technology, and streamline processes for businesses seeking growth capital. It follows ASIC’s surveillance of the private credit sector (REP 820) and incorporates insights from industry submissions and expert reports.

Key proposals include modernising public markets through simplified IPO and disclosure requirements, supporting new listing frameworks, and encouraging foreign listings. For private markets, ASIC calls for enhanced oversight tools such as mandatory notifications for wholesale funds, improved data collection, and audited financial reports.

FINANCIAL PRODUCTS

ASIC issues new guide for exchange-traded products

ASIC has released Regulatory Guide 282 (RG 282), consolidating its approach to exchange-traded products (ETPs), including exchange-traded funds (ETFs). Published on 7 November 2025, the guide replaces INFO 230 and draws on previous ASIC reports and industry input to clarify obligations for ETP issuers and market operators.

RG 282 outlines general requirements for responsible entities of registered managed investment schemes, including AFS licensing and modified design and distribution obligations. It also addresses market operator rules on admission and quotation of ETPs, covering portfolio disclosure, product naming, liquidity, and market-making arrangements. The guide aims to simplify compliance in a complex regulatory environment by consolidating existing guidance and reflecting current market practices.

FINANCIAL SERVICES

 ASIC sets licensing path for employee redundancy funds

ASIC has confirmed that operators of employee redundancy and long service leave funds, now known as employee entitlement schemes, will need to hold an AFS licence and comply with certain managed investment provisions under the Corporations Act from 1 April 2026. The decision follows consultation on employee redundancy funds under Consultation Paper 384.

Transitional relief will apply between 1 April 2026 and ASIC’s determination of licence applications, provided operators meet conditions such as holding fund property on trust, publishing fund information, preparing audited financial statements and managing conflicts of interest. Fund operators must apply for a licence by 1 September 2026. ASIC will release further guidance early 2026 on the application process and post-licensing requirements. The move reflects significant growth in the sector, with some funds now managing over $1 billion and engaging in broader activities than when relief was first granted.

ASIC consults on advertising guidance update

ASIC has released proposed updates to Regulatory Guide 234 on advertising financial products and services (RG 234). The revisions aim to modernise guidance first issued in 2012, reflecting enforcement actions and regulatory developments since then.

Key changes include consolidating guidance from Regulatory Guide 53 on the use of past performance in promotional material (RG 53) into RG 234, ensuring all advertising guidance sits in one document. ASIC also plans to withdraw RG 53 once the updated guide is published. The draft simplifies and streamlines existing content while reinforcing obligations to avoid false or misleading statements and deceptive conduct. The guidance applies to promoters of financial products, financial advice and credit services, as well as publishers of related advertising. Submissions close on 22 January 2026.

FINANCIAL SYSTEM

APRA unveils bi-annual System Risk Outlook report

The Australian Prudential Regulation Authority (APRA) has released its first System Risk Outlook report, a new bi-annual publication assessing vulnerabilities in the Australian financial system which inform APRA’s regulatory priorities. The report highlights elevated geopolitical risks and warns that global uncertainty could persist, with potential spillovers to domestic markets.

Domestically, housing remains a key concern. While lending standards are generally sound, APRA notes signs of increased high debt-to-income borrowing by investors. The regulator is monitoring these trends and considering macroprudential measures if needed. The report also summarises Phase 1 of APRA’s inaugural system risk stress test, conducted with major banks and large superannuation funds. Findings suggest super funds can stabilise the system during stress but may also amplify shocks in certain scenarios. Phase 2 of the stress test will begin shortly, with a final report expected mid-2026.

Instant asset write-off extended; broader market reforms passed

On 27 November 2025, the Senate passed the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Act 2025 (Cth). The legislation extends the $20,000 instant asset write-off for small businesses until 30 June 2026, benefiting firms with annual turnover under $10 million. The measure aims to support investment in equipment and technology by up to 4.1 million small businesses.

The Act also introduces reforms beyond tax relief. It strengthens laws targeting energy market misconduct, enhances transparency of ownership in publicly listed companies, and bolsters the Australian Charities and Not-for-profits Commission to safeguard sector integrity. These changes form part of broader efforts to modernise markets and improve consumer protections.

PAYMENTS

Payments licensing reforms move closer to implementation

ASIC has signalled that major changes to the regulation of payment services are imminent, following the close of consultation on the Government’s exposure draft bill for tranche 1(a) of its payments licensing reforms. A second tranche (1(b)) is expected soon.

The reforms aim to bring a wider range of participants in the payments value chain under ASIC oversight, applying regulation proportionate to the risk their activities pose to consumers and the payments system. Once implemented, payment service providers will need to hold an AFS licence, either by applying for the first time or updating an existing licence.

Licensees will be required to demonstrate organisational competence, adequate financial resources, and compliance capabilities, including dispute resolution, insurance, and cyber resilience. Services must be delivered “efficiently, honestly and fairly.” ASIC has updated its Regulatory Portal to support applications and will issue guidance ahead of the transition.

PRIVACY AND DATA

ASIC consults on privacy changes to Unclaimed Monies Gazette

ASIC has released a consultation on proposed amendments to the Unclaimed Monies Gazette to reduce privacy risks. Currently, the Gazette lists names and full street addresses of shareholders entitled to unpaid money following compulsory share acquisitions. Under the draft legislative instrument, ASIC would modify subsection 668A(4) of the Corporations Act to remove street names and numbers from future editions, limiting address details to suburb and postcode. The changes aim to align the Gazette with the more restricted information displayed on ASIC’s Moneysmart website.

OAIC launches interactive data breach dashboard

The Office of the Australian Information Commissioner (OAIC) has introduced a new interactive dashboard for Notifiable Data Breaches (NDB) statistics. Released on 4 November 2025, the dashboard provides dynamic access to data previously published in static reports, allowing entities and the public to analyse and benchmark breach trends.

The dashboard will be updated every six months and currently includes figures for January to June 2025, during which 532 breaches were reported - a 10% drop from the prior 6-month period. Malicious or criminal attacks accounted for 59% of notifications, with health (18%), finance (14%) and government agencies (13%) being the most affected sectors.

Alongside the dashboard, the OAIC has published a blog featuring a case study on outsourcing personal information handling and links to guidance on breach response.

OAIC annual report highlights privacy enforcement and FOI activity

The OAIC has published its 2024–25 Annual Report, detailing a year of heightened regulatory activity. Key actions included a $50 million payment program under an enforceable undertaking from Meta Platforms, Inc. and a separate undertaking by Oxfam Australia following a 2021 data breach. Australian Clinical Labs also paid $5.8 million in civil penalties, the first imposed under the Privacy Act 1988 (Cth) (Privacy Act), for a breach involving its Medlab Pathology business.

The OAIC finalised 3,123 privacy complaints and 1,155 NDB notifications, with 86% resolved within 60 days. Information Commissioner reviews surged by 41% to 2,470 compared to 2023-24, outpacing a 21% rise in new cases. The report also notes expanded guidance tools, including privacy and Freedom of Information (FOI) self-assessment resources and a new FOI statistics dashboard.

PRUDENTIAL

APRA finalises minor prudential framework updates

On 21 November 2025, APRA released its response to its consultation on minor amendments to the prudential and reporting framework for authorised deposit-taking institutions, insurers and registrable superannuation entity licensees. The changes, first proposed in September 2025, aim to keep the framework current between major reviews. APRA has published a letter to industry, finalised prudential and reporting standards, and non-confidential submissions on its website.

APRA caps high debt-to-income home loans

APRA will introduce a cap on high debt-to-income (DTI) mortgage lending from 1 February 2026 to curb emerging housing-related risks. Authorised deposit-taking institutions will be limited to writing no more than 20% of new home loans at six times income or higher, with separate limits for owner-occupier and investor lending.

The measure follows a rise in riskier lending as interest rates fall, housing credit growth exceeds its long-term average, and property prices climb. While the cap is not currently binding, APRA expects it to act as a guardrail if high-DTI lending accelerates, particularly among investors. Bridging loans and loans for new dwellings are excluded to avoid disrupting property transactions and housing supply. Other macroprudential settings, including the mortgage serviceability buffer and  counter-cyclical capital buffer, remain unchanged. APRA has signalled further limits may follow if lending standards deteriorate.

SUPERANNUATION

New law mandates payday super contributions

The Federal Parliament has passed legislation requiring employers to pay superannuation at the same time as salary and wages, starting 1 July 2026. Under the new legislation, employers must ensure super contributions reach employees’ funds within seven business days of payday or face the superannuation guarantee charge.

The change aims to reduce unpaid super, which the ATO estimates totalled $6.25 billion in the most recent financial year, disproportionately affecting casual and lower-paid workers. The ATO will consult on compliance measures for the first year, with a risk-based approach to enforcement.

ASIC extends superannuation disclosure relief

ASIC has extended by three years the exemption for superannuation trustees from certain disclosure obligations under the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act). The relief, originally provided by ASIC Superannuation (Disclosure and Reporting Consistency Obligations) Instrument 2023/941, will now apply until 1 January 2029 following the introduction of ASIC Superannuation (Amendment) Instrument 2025/449.

The exemption relates to subsection 29QC(1) of the SIS Act, which aims to ensure consistency between public disclosures and regulatory reporting to APRA. ASIC cited ongoing uncertainty about how to meet these requirements as the reason for continuing the relief. The decision follows targeted consultation with industry representatives, all of whom supported the extension.

APRA flags governance and resilience gaps in superannuation sector

Speaking at the ASFA Conference on 12 November 2025, APRA Executive Director, Carmen Beverley-Smith, warned that trust in Australia’s $4.3 trillion superannuation industry is under pressure following cyberattacks, operational incidents and the collapse of two managed investment schemes. Ms Beverley-Smith also highlighted weaknesses in trustee governance and operational resilience.

A recent thematic review found 12 of 23 trustees need material improvements in asset valuation and liquidity risk frameworks. Another review of platform trustees revealed significant gaps in due diligence, onboarding and monitoring practices, covering 95% of member assets on platforms. APRA has directed trustees to address deficiencies urgently and flagged enforcement action where necessary. The regulator also cited persistent weaknesses in cyber controls, despite requirements under APRA’s Information Security standard CPS 234, and noted uneven progress on obligations under the Retirement Income Covenant.

Regulators warn super funds on retirement strategy gaps

ASIC and APRA have jointly published the 2025 Retirement Income Covenant Pulse Check report, assessing trustees’ progress in implementing retirement income strategies required under the SIS Act since July 2022. The review found significant divergence between funds actively improving retirement outcomes and those making only incremental changes.

The covenant obliges trustees to develop strategies addressing income maximisation, risk management and flexible access for members approaching or in retirement. Despite three years since commencement, many trustees have yet to meet better practice standards outlined in the report. Regulators noted that over 1.5 million Australians are already retired, with another 2.5 million expected to retire in the next decade, collectively holding nearly $600 billion in superannuation savings. ASIC and APRA will provide individual feedback to trustees and continue engagement on broader retirement phase initiatives, including proposed best practice principles and reporting frameworks.

ASIC seeks feedback on super fund disclosure rules

ASIC has launched a consultation on proposed changes to stamp duty and portfolio holdings disclosure requirements for superannuation funds and investment managers. The move follows a targeted review of investment disclosure settings announced in August 2025.

Under the proposals, stamp duty would be disclosed as a seven-year average rather than annually in fees and costs summaries, requiring amendments to ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070. ASIC is also considering relief for trustees managing private debt internally, aligning their portfolio holdings disclosure obligations with those for externally managed private debt. The regulator convened a working group in September and October 2025 to assess whether current rules distort investment decisions. Submissions close on 20 February 2026. ASIC has also flagged a broader review of Regulatory Guide 97 on fee and cost disclosure for 2026–27 financial year.

AML/CTF

Banks urged to tighten controls on illicit tobacco payments

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has called on banks to strengthen anti-money laundering controls over tobacconists and convenience stores amid concerns about illicit tobacco trade. AUSTRAC and the Illicit Tobacco and E-cigarette Commissioner warned that private ATMs and point-of-sale payment systems are being exploited to purchase illicit tobacco and launder proceeds.

Banks continuing to service these businesses are advised to monitor transactions closely and report suspicious activity. The move follows new data showing organised crime cost Australia up to $82.3 billion in 2023–24, with illicit tobacco accounting for an estimated $4 billion, a fourfold increase in three years.

AUSTRAC flags child exploitation risks in payment platforms

AUSTRAC has warned online payment platforms to strengthen controls after a supervisory campaign uncovered serious compliance gaps linked to child sexual exploitation. The regulator found low levels of suspicious matter reporting, inadequate transaction monitoring and failures to manage high-risk customers across the sector.

Following its review, AUSTRAC directed WorldRemit to appoint an external auditor, issued letters of concern to five businesses and is investigating several others. The campaign used transaction monitoring simulations to identify customers making frequent low-value transfers, typically $10 to $500, often disguised with benign descriptions such as “school uniform” or “medical costs”. Some accounts should have been closed immediately, AUSTRAC said.

Around 90 payment platforms operate in Australia, many handling more international transfers than major banks, including to high-risk jurisdictions. AUSTRAC stressed that timely suspicious matter reports are critical for law enforcement to disrupt offenders.

AUSTRAC launches revamped reporting platform

AUSTRAC has rolled out a modernised version of its AUSTRAC Online reporting platform, aimed at improving usability and security for regulated businesses. The updated system, launched on 17 November 2025, features a more responsive interface compatible across devices, enhanced self-service tools, and clearer guidance on new functionalities. Businesses are advised to check their email for instructions on setting up new security features. Administrators will have additional steps to complete. AUSTRAC also scheduled online information sessions between 17 and 21 November 2025 to assist users with the transition.

DISPUTES AND ENFORCEMENT

ASIC sets 2026 enforcement priorities

ASIC has outlined its enforcement focus for 2026, targeting emerging risks and persistent misconduct. New priorities include misleading pricing practices that affect cost of living, poor private credit practices, failures in financial reporting, and deficiencies in insurance claims and complaint handling. ASIC will also prioritise accountability for the collapse of the Shield Master Fund (Shield) and First Guardian Master Fund (First Guardian), one of its largest investigations to date. Continuing priorities cover insider trading, exploitation of consumers facing financial difficulty, unlawful attempts to evade small business creditors, superannuation trustee failures, and auditor misconduct.

AFCA warns of risks in unregulated small business lending

Small business complaints to AFCA remain at record levels, with 4,648 lodged in 2024–25, up 4% on the previous year. AFCA closed 4,017 complaints and secured $27 million in compensation, but 21% of finance-related complaints could not be considered because the lender was not an AFCA member.

Under current law, not all small business lenders must join AFCA, leaving borrowers without external dispute resolution if issues arise. AFCA cautions business owners to check lender membership before taking out loans. Business transaction accounts overtook loans as the most complained-about product, rising 32% to 1,676 complaints. Service quality was the top issue, up 43%, followed by failure to respond to assistance requests and incorrect fees.

AFCA systemic investigations deliver $3.4m in remediation

AFCA’s latest Systemic Issues Insights Report reveals that more than 342,000 consumers and small businesses were affected by systemic issues identified between April and September 2025. The ombudsman conducted 86 investigations into patterns of misconduct or operational failures across financial firms, referring 50 matters to regulators.

The investigations secured over $3.4 million in refunds and remediation, alongside non-financial outcomes such as credit file corrections and improved disclosure practices. Recurring weaknesses included poor complaint handling, gaps in hardship support, legacy system failures, and inconsistencies between policy and practice in product suitability.

AFCA updates guidance on family violence and elder financial abuse

AFCA has published revised guidance on handling complaints involving family violence and financial abuse of older people, following a comprehensive consultation process. Released on 19 November 2025, the updates replace previous approaches on joint accounts and elder abuse. The refreshed documents expand coverage across all financial product areas and include case studies drawn from AFCA’s experience. They outline definitions, principles for responding to these issues, early warning signs, and how AFCA addresses such complaints in sectors including insurance, superannuation, and investments.

AFCA confirms Rule changes after consultation

On 28 November 2025, the AFCA released response to submissions on proposed changes to its Complaint Resolution Scheme Rules (Rules), following ASIC’s formal approval. The updated Rules will take effect on 12 March 2026. Key changes include an expanded jurisdiction to consider complaints involving receiving banks and mule accounts in scam-related matters, tighter oversight of paid representatives through mandatory use of AFCA’s consumer portal, and the ability to publish the names of financial firms that fail to comply with AFCA determinations. Section F of the existing Rules, which dealt with legacy complaints, has been removed.

HESTA pays ASIC penalty over misleading carbon claims

The trustee for the HESTA superfund, H.E.S.T. Australia Ltd (HESTA) has paid $37,560 in infringement notices after ASIC alleged the super fund made misleading statements in online advertisements about its climate commitments. Between April 2021 and December 2024, HESTA ran ads on Google and Bing claiming it was “committed to remove all investment in carbon emissions by 2050.” ASIC said this overstated HESTA’s position, as its actual target is achieving net zero emissions across its portfolio by 2050 - a goal that can include offsetting rather than divestment. The advertisements linked to HESTA’s “Why Join” webpage, which ASIC considered could mislead consumers about the fund’s sustainability strategy. HESTA self-reported the issue and paid the notices on 3 November 2025.

High Court rejects Cigno directors’ appeal

The High Court has dismissed an application for special leave to appeal by Mark Swanepoel and Brenton Harrison, directors of Cigno Australia Pty Ltd (Cigno) and BSF Solutions Pty Ltd (BSF), respectively. The pair sought to challenge a Full Federal Court decision upholding findings that they were involved in unlicensed credit activity and charged prohibited fees under the National Consumer Credit Protection Act 2009 (Cth).

ASIC commenced civil penalty proceedings against the pair in October 2023. In May 2024, the Federal Court ruled that Cigno and BSF Solutions operated without an Australian Credit Licence and imposed unlawful charges. The Full Federal Court dismissed their appeal in July 2025. The High Court’s refusal means the case will return in April 2026 for a hearing on penalties.

Prime Super pays infringement notice over tobacco investment claims

Prime Super Pty Ltd (Prime Super) has paid an infringement notice of $18,780 after ASIC alleged the fund made misleading statements about its investment exclusions. Between October 2023 and June 2025, Prime Super’s annual report claimed that manufacturers of tobacco products were “excluded entirely” from the fund. However, ASIC found the fund had indirect holdings in several tobacco companies, including Altria Group Inc, British American Tobacco PLC and Philip Morris International Inc. Prime Super reported the issue to ASIC and has stopped claiming complete exclusion of tobacco investments.

Financial advisers reprimanded for CPD failures

ASIC has taken action against financial advisers who failed to meet continuing professional development (CPD) obligations. Between March and May 2025, the Financial Services and Credit Panel (FSCP) considered five cases referred by ASIC. Four advisers received formal reprimands, while no action was taken against the fifth.

Under the Corporations (Relevant Providers Continuing Professional Development Standard) Determination 2018, relevant providers must complete at least 40 hours of CPD annually, including minimum hours in technical competence, client care, regulatory compliance, ethics, and tax advice (where applicable). ASIC reminded licensees that they must notify the regulator if advisers fail to comply and ensure CPD is completed throughout the year rather than at the last minute.

ASIC sues SQM Research over misleading fund ratings

ASIC has commenced civil penalty proceedings against SQM Research Pty Ltd (SQM Research), alleging misleading conduct in reports that rated Shield as “Favourable”. The reports, issued between October 2021 and October 2022, were provided to financial advisers and superannuation trustees, potentially influencing investment decisions by around 5,800 individuals.

ASIC claims SQM Research failed to obtain adequate information, overlooked inconsistencies, and misrepresented that its ratings were based on reasonable care and skill. The regulator also alleges inaccuracies in disclosures about related-party fund management and asset allocation.

This marks ASIC’s first action against a research house, which it describes as a key gatekeeper in the financial services sector. SQM Research holds an AFS licence and charged Shield’s responsible entity for preparing the reports. ASIC is seeking declarations and civil penalties.

ASIC sues Interprac over alleged oversight failures

ASIC has launched civil penalty proceedings in the Federal Court against Interprac Financial Planning Pty Ltd (Interprac), alleging critical compliance failures that exposed thousands of Australians to high-risk investments. ASIC claims Interprac failed to ensure two former authorised representatives, Venture Egg (a corporate partnership) and Rhys Reilly Pty Ltd, acted in clients’ best interests when advising around 6,843 clients to invest approximately $677 million of their superannuation into the collapsed Shield and First Guardian.

ASIC alleges Interprac lacked adequate product approval processes, relied solely on external research, and failed to act on serious compliance warnings, including concerns acknowledged by its own managing director. Other alleged failings include permitting ‘negative consent’ practices, inadequate responses to client complaints, and ignoring audit findings. ASIC is seeking declarations, civil penalties, and orders restraining Interprac from providing financial services.

Cbus fined $23.5m for delays in death and disability claims

The Federal Court has ordered United Super Pty Ltd, trustee of the Construction and Building Unions Superannuation Fund (Cbus), to pay a $23.5 million penalty for systemic failures in processing death benefits and total and permanent disability insurance claims. The breaches, which affected more than 7,000 members and claimants, resulted in delays exceeding 12 months for hundreds of cases between 2022 and 2024.

Justice O’Callaghan found Cbus contravened the Corporations Act by failing to ensure claims were handled efficiently, honestly and fairly, and by not reporting issues to ASIC within required timeframes. At one point, over half of all open death claims had been pending for more than a year. The fund, ranked ninth largest in Australia as at 30 June 2024 with $95 billion in assets, outsourced claims processing to Australian Administration Service Pty Limited between October 2022 and November 2024 but retained ultimate responsibility. Cbus has also committed $32 million in remediation and must implement a compliance program under court orders.

ASIC stops City Finance from issuing small loans

ASIC has imposed an interim stop order on City Finance Lending Pty Ltd (City Finance), preventing it from issuing small amount credit contracts (SACCs) to retail clients. The order, announced on 25 November 2025, follows concerns over deficiencies in the firm’s target market determination (TMD) under the Design and Distribution Obligations regime.

ASIC found the TMD may fail to clearly define the target market, including acceptable income sources, unacceptable purpose for product use and exclusions for customers lacking repayment capacity. It also noted inconsistencies between the TMD and statements on City Finance’s website, and inadequate distribution conditions to ensure loans reach the intended market.

The stop order, valid for 21 days unless revoked earlier, aims to prevent consumers from obtaining unsuitable credit products. City Finance holds an Australian Credit Licence and offers loans of up to $2,000 for personal purposes.

APRA imposes licence conditions on Australian Ethical Super

APRA has imposed additional licence conditions on Australian Ethical Superannuation Pty Ltd (AES), trustee of the Australian Ethical Retail Superannuation Fund, following concerns about its expenditure management. An APRA review found weaknesses in AES’s oversight of related-party expenditure, particularly fees paid under investment management agreements with its parent company, Australian Ethical Investments Ltd. The regulator concluded AES had not demonstrated adequate processes to ensure these payments align with members’ best financial interests. Under the new conditions, AES must appoint an independent third party to review its outsourcing decisions and recommend improvements. AES will be required to implement those recommendations to strengthen governance, manage conflicts and improve transparency around expenditure practices.