CONSUMER CREDIT
ASIC identifies improvements needed in mortgage broker best interests practices
The Australian Securities and Investments Commission (ASIC) has released a report following a review of 13 credit licensees across eight large mortgage broker groups. While practices generally aligned with ASIC guidance, the review identified opportunities to strengthen loan recommendations, supervision and complaints handling. Seven of the eight aggregator groups reported that brokers recommended a loan other than the cheapest available option in more than 20% of cases, with ASIC identifying instances where there was insufficient evidence to support the higher-cost recommendation.
ASIC also identified weaknesses in complaints handling, including complaints being missed, withdrawn without full investigation or delayed, and found that best interests duty complaints took longer to resolve than other complaints. ASIC expects licensees to strengthen monitoring of broker recommendations, particularly where lower-cost alternatives are available, improve the use of data to identify conduct risks and enhance complaints handling and reporting practices.
CONSUMER PROTECTION
Government advances reforms to combat financial abuse
The Federal Government has tabled its response to the Parliamentary Joint Committee on Corporations and Financial Services inquiry into financial abuse, supporting or supporting in principle 58 of the inquiry’s 61 recommendations. It has also commenced consultation on reforms addressing financial abuse involving the tax and social security systems, including targeted debt relief and an option to give courts greater flexibility to transfer tax or social security debts to the spouse responsible for the abuse in family law proceedings.
Other reforms underway include preventing perpetrators of family and domestic violence from receiving victims’ superannuation death benefits, addressing coerced directorships and associated liabilities, empowering the Australian Taxation Office (ATO) to prevent rollovers into newly established self-managed superannuation funds where financial abuse or other misconduct is suspected, reforming the child support system, and expanding Services Australia’s powers to waive social security debts arising from family and domestic violence.
CORPORATE
ASIC outlines priorities for the future of financial reporting
In a speech on the future of financial reporting, ASIC Chair Sarah Court outlined ASIC’s focus on improving the quality of financial reporting and audit while supporting reforms aimed at making Australia’s reporting framework more proportionate and efficient. ASIC’s current surveillance work covers sustainability reporting, company and superannuation financial reporting and audits, with future work extending to managed investment schemes, particularly valuations and related audit processes. ASIC has also signalled continued enforcement where reporting and auditing obligations are not met.
ASIC highlighted several reforms shaping the reporting framework, including the establishment of External Reporting Australia, the Treasury’s consideration of stronger regulation of accounting, auditing and consulting firms, proposed reforms to improve the efficiency of climate-related financial disclosures, and the Productivity Commission’s review of non-financial business reporting. ASIC supports consideration of an audit firm licensing regime and stronger enforcement and disciplinary powers, noting limitations in the existing framework for regulating large multidisciplinary audit firms.
ASIC identifies continuing financial reporting and audit quality concerns
ASIC has published findings from its 2025–26 financial reporting and audit surveillance, identifying continuing concerns where financial reports rely significantly on judgement, including revenue recognition, impairment and asset valuations. ASIC reviewed 353 financial reports, conducted financial reporting surveillance of 30 companies and examined 25 audit files across 12 audit firms. Following ASIC’s concerns, ten companies made or agreed to improve disclosure of material business risks, while other changes addressed asset recognition and valuations, disclosures, deferred tax assets and employee benefit provisions.
ASIC identified 42 findings across its company audit surveillances, including failures to sufficiently challenge management assumptions, obtain adequate audit evidence and document compliance with ethical, independence and quality management requirements. ASIC will monitor remediation by affected auditors and action plans developed by the six largest audit firms. In 2026–27, ASIC will continue surveillance of companies and registrable superannuation entities and expand its program to managed investment schemes.
Government proposes higher reporting thresholds for proprietary companies
The Federal Government has released draft regulations to increase the financial reporting thresholds for proprietary companies. The thresholds would increase to $100 million in consolidated revenue, from $50 million, and $50 million in consolidated gross assets, from $25 million. Companies falling below the new thresholds would not be required to prepare the annual financial, directors’ and sustainability reports required of larger companies.
The new thresholds are proposed to apply to financial years commencing on or after 1 July 2027. The Federal Government estimates the changes will reduce business compliance costs by more than $210 million annually. Consultation on the draft regulations closed on 2 November 2026.
DIGITAL ASSETS
ASIC consults on implementation of new digital asset laws
ASIC has commenced consultation on proposed guidance and standards for the new regulatory framework for digital asset platforms (DAPs) and tokenised custody platforms (TCPs), which commences on 8 April 2027. The proposals cover licensing and disclosure obligations, standards for asset holding, trading and settlement activities, and financial requirements for licensees. Firms may be required to obtain or vary an Australian financial services (AFS) licence and comply with platform rules, customer disclosure requirements and net tangible asset requirements where applicable.
ASIC is also proposing streamlined licensing processes for existing AFS licensees and certain businesses that previously applied for digital asset-related authorisations. The proposed guidance addresses how the new framework will apply not only to DAP and TCP operators, but also to existing licensees, market participants, payments providers and other businesses using or dealing with digital assets. Submissions close on 27 November 2026.
Consultation on crypto asset tax transparency legislation
The Federal Government has released draft legislation to introduce the Organisation for Economic Co-operation and Development (OECD) Crypto-Asset Reporting Framework into Australian law and establish a domestic crypto asset reporting regime for transactions involving Australian residents. The draft legislation also proposes updates to Australia’s existing Common Reporting Standard framework. The consultation closed on 28 October 2026.
FINANCIAL ADVICE
ASIC proposes to continue tax advice exemption for licensees
ASIC is consulting on a proposal to extend for a further five years the existing exemption that allows AFS licensees and their representatives to provide limited advice on the tax implications of financial products outside the scope of their licence or authorisations. ASIC proposes to remake the existing instrument, which expires on 1 April 2027, with minor updates but no change to the substantive effect of the relief.
Licensees and representatives relying on the exemption must provide a disclaimer explaining that they are not licensed or authorised to provide the relevant tax advice, that tax is only one factor to consider and that clients should consider obtaining appropriately authorised advice before making a decision. Submissions close on 25 November 2026.
ASIC begins further review of financial adviser qualifications
ASIC has commenced a further review of the Financial Advisers Register to assess whether relevant providers have met the financial adviser qualifications standard. The targeted review will examine a sample of qualifications and training courses recorded by AFS licensees as contributing towards their relevant providers meeting the standard. ASIC is also continuing to monitor notifications concerning advisers relying on the experienced provider pathway.
Since 1 January 2026, all relevant providers giving personal advice to retail clients on relevant financial products must meet the qualifications standard. ASIC has reminded AFS licensees and relevant providers to ensure Financial Advisers Register records accurately demonstrate how each adviser satisfies the standard, noting that advisers who missed their applicable deadline cannot remain authorised to provide this advice.
FINANCIAL MARKETS
ASIC consults on financial resources requirements for market operators
ASIC is consulting on proposed updates to Regulatory Guide 172 Financial Markets: Domestic and overseas operators (RG 172) concerning the financial resources requirements for licensed market operators. The proposed guidance would clarify the form and availability of financial resources that market operators should maintain and introduce additional scenario and stress testing expectations for significant market venues. The proposed updates would also clarify reporting and monitoring requirements to support compliance with the obligation under the Corporations Act 2001 (Cth) for market licensees. Submissions close on 4 December 2026.
ASIC outlines priorities for Australia’s capital markets
In opening remarks at the second ASIC Financial Markets and Innovation Roundtable, ASIC Chair Sarah Court outlined six areas of focus for improving the accessibility, efficiency and resilience of Australia’s capital markets. These include improving liquidity and access for retail investors, supporting emerging and innovative companies, enabling collateral mobility and interoperability, aligning settlement windows, strengthening critical market infrastructure and resilience, and improving transparency in valuation and margining to monitor systemic risk.
ASIC also highlighted the increasing mobility of capital, the evolving relationship between public and private markets and the role of technology in reducing friction and improving market efficiency. ASIC intends to identify practical actions over the next six to 18 months, while avoiding unnecessary regulation that could inhibit growth or productivity.
FINANCIAL PRODUCTS
ASIC proposes extending and strengthening CFD protections
ASIC has commenced consultation on extending its contracts for difference (CFD) product intervention order (PIO) for a further 10 years and amending it to cover products with equivalent economic characteristics and risks. Proposed changes include extending the CFD definition to products settled through transfers of digital assets, clarifying margin requirements for CFDs over options and confirming that initial margin must be applied separately to each CFD without netting opposing positions.
ASIC is also consulting on whether CFDs over options that can expose retail clients to losses exceeding the premium should remain available to retail investors. Subject to Ministerial approval, the amended PIO would remain in force until 2037 unless revoked earlier. Submissions close on 9 November 2026.
FINANCIAL SERVICES
ASIC remakes relief for client money held in cash common funds
ASIC has remade a legislative instrument allowing AFS licensees to place client money in cash common funds. The ASIC Corporations (Client money – Cash common funds) Instrument 2026/727 continues the existing relief arrangements and replaces the previous instrument that expired on 1 October 2026. The new instrument will remain in force until 1 October 2031. Under the relief, client money held in cash common funds may only be invested in fixed-interest securities and negotiable instruments.
ASIC proposes changes to IDR data reporting requirements
ASIC has commenced consultation on remaking the legislative instrument governing internal dispute resolution (IDR) data reporting for a further five years. The principal proposed change would allow small banks on the lowest tier of the Australian Prudential Regulation Authority’s (APRA) prudential framework to report IDR data annually rather than every six months, formalising an existing no-action position. ASIC is also seeking feedback on whether annual reporting should be extended to all firms subject to IDR reporting requirements.
The existing instrument requires AFS licensees and certain other firms, including credit licensees, to report prescribed IDR information to ASIC every six months. Submissions on the proposed remake and reporting frequency changes close on 13 November 2026.
ASIC updates reportable situations dashboard
ASIC has updated its Reportable Situations dashboard to include two full years of data on breaches self-reported by AFS and credit licensees. The dashboard provides information on the volume and nature of reported breaches, affected products and issues, customer impacts, breach rectification and customer remediation.
Between 1 July 2025 and 30 June 2026, ASIC received 11,838 initial breach reports, 490 fewer than in the previous financial year. Of these reports, 7,673 were submitted by AFS licensees and 4,520 by credit licensees.
ASIC increases net tangible assets requirements for responsible entities
ASIC has made a legislative instrument increasing the net tangible assets (NTA) requirements for responsible entities of registered managed investment schemes from 1 July 2027. The minimum financial thresholds will increase to reflect inflation since they were last updated in 2013 and will subsequently be adjusted annually for inflation. The changes will also apply to operators of investor directed portfolio services and corporate directors of retail corporate collective investment vehicles.
ASIC has also updated Regulatory Guide 166 AFS licensing: Financial requirements to reflect the changes. From 2027, ASIC will publish the updated NTA thresholds on its website each year after the relevant inflation data becomes available.
ASIC outlines priorities on private credit, audit quality and AI
In a speech on regulatory scrutiny and accountability, ASIC Chair Sarah Court highlighted three areas receiving increased regulatory attention: private credit, audit quality and artificial intelligence (AI). On private credit, ASIC is continuing surveillance and enforcement work focused on governance, transparency, valuations and conflicts management, including examining potential retail investor exposure arising from recent market stress.
ASIC is also conducting surveillance of the big four audit firms and has advocated for reforms to broaden its powers to address poor practices at the audit firm level. On AI, ASIC will examine its use across the financial system, including banks’ use of AI in customer-facing services and decision-making and the potential use of AI for market manipulation through deepfakes and misinformation. ASIC emphasised that firms remain responsible for complying with existing legal obligations when deploying AI.
INSOLVENCY
ASIC updates guidance on creditor-defeating dispositions
ASIC has updated its guidance for registered liquidators seeking orders in relation to creditor-defeating dispositions (CDDs). The guidance provides further detail on the supporting information and evidence liquidators should include to demonstrate that a transaction meets the requirements of a voidable CDD, as well as options for obtaining company books and gathering sufficient evidence before making a request to ASIC.
The changes follow ASIC’s review of its CDD order process, which identified challenges relating to evidentiary requirements, information gaps and procedural issues. ASIC has also launched a dedicated CDD webpage containing practical examples and a new booking system allowing liquidators to discuss potential requests with ASIC before submitting them.
Consultation on personal insolvency reforms
The Treasury has commenced consultation on draft amendments to the Bankruptcy Act 1966 (Cth) (Bankruptcy Act) that would increase the involuntary bankruptcy threshold from $10,000 to $20,000 and provide for the threshold to be indexed over time. The amendments would also extend the period for a debtor to respond to a bankruptcy notice from 21 to 28 days and remove the proposal or acceptance of a debt agreement as an “act of bankruptcy” under section 40(1) of the Bankruptcy Act. Submissions closed on 3 November 2026.
The reforms implement three of four priority reforms previously identified by the Federal Government. A fourth reform, reducing the period during which the public can search for a discharged bankrupt’s details on the National Personal Insolvency Index, will be subject to a later consultation.
ASIC publishes review of insolvent liquidation processes and outcomes
ASIC has published a report examining 26,664 court and creditors’ voluntary liquidations between 1 July 2021 and 30 June 2025. The review found that around half of liquidations realised no more than $10,000 in assets and around one-quarter realised no assets. Around 69% of companies reported liabilities below $1 million, while 88.1% of finalised liquidations resulted in no dividend to ordinary unsecured creditors and either no liquidator remuneration being approved or remuneration paid being less than the amount approved.
ASIC also found that the simplified liquidation process continues to be rarely used, with only eight simplified liquidations adopted in 2024–25, representing around 0.2% of creditors’ voluntary liquidations with reported liabilities not exceeding $1 million. ASIC identified opportunities to improve access to the simplified liquidation process and emphasised the importance of directors responding early to financial difficulty to preserve restructuring options and limit further creditor losses.
PAYMENTS
Credit and debit card surcharges end in Australia
Debit and credit card surcharges were brought to an end on 1 October 2026. The Reserve Bank of Australia (RBA) implemented the ban by removing its prohibition on card schemes’ “no-surcharge” rules, allowing eftpos, Mastercard and Visa to ban surcharging on their networks. Consumers can no longer be charged card surcharges when paying by debit or credit card, with the Federal Government estimating that the change will remove around $1.6 billion in annual surcharges. The reforms also lower the cap on domestic interchange fees and are estimated to save businesses around $910 million each year.
AusPayNet warns of quantum threat to payment systems
Australian Payments Network Limited (AusPayNet) has highlighted the security risks that quantum computing poses to Australia’s payment systems. Cryptographically relevant quantum computers could compromise widely used public-key cryptography, potentially exposing the confidentiality, authenticity and integrity of payment messages. AusPayNet notes that the risk is already emerging through “Harvest Now, Decrypt Later” activity, where encrypted data is collected for potential future decryption.
AusPayNet recommends a coordinated transition to post-quantum cryptography (PQC) across Australia’s card, direct entry, high-value, New Payments Platform and BPAY systems. Payment participants should begin by developing cryptographic inventories to identify vulnerable algorithms and assess their exposure, with near-term priority given to PQC or hybrid-PQC key establishment mechanisms. The Australian Signals Directorate has recommended completing migration to PQC by the end of 2030, and AusPayNet intends to work with its members to assess impacts and coordinate migration where appropriate.
Proposed extended authorisation for account-to-account payments collaboration
The Australian Competition and Consumer Commission (ACCC) has issued a draft determination proposing to extend authorisation for industry participants to collaborate on the future of account-to-account payments infrastructure in Australia. The arrangements would allow AusPayNet, Australian Payments Plus and participants in key payment systems to share information, develop a common industry vision and reach in-principle agreement on how the future state should be achieved. The RBA and Commonwealth Treasury are also involved in the discussions. The ACCC proposes to grant the authorisation subject to conditions and on substantially the same terms as the existing authorisation for an additional six months, until 31 July 2027.
PRIVACY AND DATA
Consultation on CDR security and authentication standards
The Treasury is consulting on two sets of proposed changes to the Consumer Data Right (CDR) Data Standards. The first would introduce minimum baseline authentication requirements to strengthen authentication, improve accessibility and consumer experience, and provide greater security and consistency across the CDR ecosystem. The second would align the CDR Data Standards with the Financial-Grade API 2.0 security profile, with the proposed changes aimed at strengthening security and simplifying implementation of the standards. Both consultations close on 26 November 2026.
OAIC reports increased demand for privacy and information access services
The Office of the Australian Information Commissioner (OAIC) has released its 2025–26 Annual Report, reporting significant growth in privacy and information access matters. The OAIC received 5,268 privacy complaints, a 60% increase from 2024–25, and 3,025 applications for Information Commissioner reviews, up 42%. It also finalised 1,327 notifications under the Notifiable Data Breaches (NDB) scheme, an 18% increase, with 88% finalised within 60 days.
OAIC priorities for 2026–27 include future privacy reforms, implementation of the Children’s Online Privacy Code and improving information access practices across government agencies.
OAIC reports increase in large-scale data breaches
The OAIC received 667 notifications under the NDB scheme between January and June 2026, compared with 662 in the previous reporting period. While overall notifications increased only slightly, larger breaches became more common, including 11 reported breaches affecting more than one million individuals globally, up from four in the previous period. Malicious or criminal attacks remained the leading cause of notified breaches.
Health service providers recorded the most notifications with 149, followed by education with 85, business and professional associations with 79, and financial services and personal services with 51 each. The OAIC also reported improvements in detection times, with more than half of notified breaches identified within 10 days and fewer taking more than 30 days to be identified.
PRUDENTIAL
Consultation on parts of better regulation measures for banks
The Treasury is consulting on draft amendments to section 69B of the Banking Act 1959 (Cth) and the ministerial rules under the Financial Accountability Regime Act 2023 (Cth).
The proposed amendments to section 69B would increase from $15,000 to $30,000 the amount that may be withdrawn from a deceased person’s bank account without probate or letters of administration. They would also allow withdrawals to pay court filing fees for applications for probate or letters of administration.
The proposed changes to the Financial Accountability Regime (FAR) ministerial rules would increase the enhanced notification threshold for banks from $20 billion to $30 billion in assets. Banks above this threshold are subject to additional reporting obligations under the FAR. Submissions close on 20 November 2026.
Consultation on Banking Regulations
The Treasury consulted on draft Banking Regulations 2026 (Cth), which would remake the Banking Regulations 2016 (Cth) before they expire on 1 April 2027. The draft regulations are largely unchanged, but would increase the covered bond issuance limit for authorised deposit-taking institutions (ADIs) from 8% to 12% of an ADI’s assets, implementing a recommendation from the Council of Financial Regulators’ Review into Small and Medium-sized Banks. The draft regulations would also make minor technical amendments to remove outdated references and keep the regulatory framework current. The consultation closed on 30 October 2026.
SUPERANNUATION
ASIC calls for stronger scrutiny of super fund valuations
ASIC has released a report following its review of 42 registrable superannuation entity (RSE) financial reports and six audits, finding that further improvement is needed in the valuation of unlisted investments. ASIC identified concerns including trustees relying heavily on external fund managers for fair value information, delays in adjusting member liabilities following significant investment write-downs, and limited disclosure about valuation techniques and assumptions.
ASIC’s audit review also found instances where auditors did not adequately test prices, valuation methodologies and assumptions for externally managed investments or obtain sufficient evidence for internally managed investments. In 2026–27, ASIC will continue its surveillance of RSE financial reporting and audits and expand the program to managed investment schemes, with regulatory or enforcement action to be considered where significant breaches are identified.
TAXATION
Government introduces next tranche of tax reform legislation
The Federal Government has introduced the Treasury Laws Amendment (Tax Reform No. 3) Bill 2026 and Income Tax Rates Amendment (Minimum Tax on Discretionary Trusts) Bill 2026. The legislation would introduce a minimum tax on discretionary trusts from 1 July 2028, including a new definition of fixed trusts and expanded options to reduce restructuring costs. Exemptions would apply to specified trusts and income, including fixed, charitable and special disability trusts, superannuation funds, deceased estates, genuine testamentary trusts and certain primary production income. Eligible discretionary trusts could also elect to make distributions to pre-nominated beneficiaries to remain exempt from the minimum tax.
The Bills also implement the next tranche of reforms to negative gearing and capital gains tax, including exemptions for specified housing such as affordable and public housing, specialist disability accommodation, retirement villages, residential aged care and build-to-rent developments. The legislation also provides transitional relief for excess contributions in the first year of Payday Super.
ATO to continue accepting credit cards until 30 June 2027
The Federal Government has announced that the ATO will continue accepting direct credit card payments until 30 June 2027, providing a longer transition period before these payments are phased out. The Federal Government will provide transitional funding to allow the ATO to continue accepting credit cards during this period, while the ATO engages with small businesses and other taxpayers on alternative payment arrangements. The ATO will also consult on support for taxpayers experiencing financial hardship and those unable to pay using other methods. From 1 July 2027, taxpayers will still be able to make credit card payments through third-party providers, as well as using free or low-fee options such as debit cards and bank transfers.
DISPUTES AND ENFORCEMENT
ASIC releases 2025–26 Annual Report
ASIC has released its 2025–26 Annual Report, reporting that it secured court orders for $830 million in civil penalties and helped secure more than $580 million in repayments and refunds for consumers and investors. During the year, ASIC commenced 260 formal investigations and 32 civil proceedings involving 65 defendants and completed 1,012 surveillances. Its regulatory and enforcement activity included banking remediation, action relating to the Shield and First Guardian collapses, executive accountability proceedings and removal of more than 19,400 investment scam and phishing websites and associated social media advertisements.
ASIC also reported work across financial markets and emerging risks, including its inquiry into ASX Group’s governance, capability and risk management, enforcement in relation to cybersecurity failures, increased scrutiny of private credit funds and industry-wide remediation in the contracts for difference sector. ASIC also progressed regulatory simplification by removing more than 9,000 pages of legacy web content, updating more than 280 form landing pages and simplifying more than 180 pages of regulatory guidance.
ASIC consults on updated guidance for AFCA oversight
ASIC is consulting on proposed updates to Regulatory Guide 267 Oversight of the Australian Financial Complaints Authority to reflect the expanded jurisdiction of the Australian Financial Complaints Authority (AFCA) under the Scams Prevention Framework (SPF) from 31 March 2027. Under the SPF, AFCA will consider scam-related complaints involving the initial designated sectors of banking, telecommunications and digital platforms.
The proposed changes would simplify the guidance, remove material now covered by AFCA’s scheme rules and more clearly distinguish between legislative requirements, AFCA’s scheme rules and ASIC’s oversight expectations. ASIC may make further changes once AFCA’s final scheme rules for scam-related complaints and other SPF settings are settled. Submissions close on 24 November 2026.
AFCA introduces the Australian Scams Ombudsman
AFCA has announced that the Australian Scams Ombudsman will be the consumer-facing name of the single external dispute resolution service for scam complaints operated by AFCA under the SPF. Consumers and small businesses will be able to bring eligible scam complaints to the Australian Scams Ombudsman from 31 March 2027 for matters occurring on or after that date.
AFCA will operate the Australian Scams Ombudsman and has confirmed that the introduction of the new name will not affect existing AFCA memberships. References to the Australian Scams Ombudsman will progressively appear in AFCA’s consumer-facing communications ahead of commencement.
AFCA publishes latest systemic issues insights report
AFCA has published Edition 9 of its Systemic Issues Insights Report, covering systemic issues identified during the second half of 2025–26 financial year. The report identifies common themes from AFCA’s systemic issues work, including the importance of maintaining information across the customer journey and using complaints as an early warning signal for potential systemic issues.
AFCA reported that more than 390,000 consumers and small businesses benefited from its systemic issues work during the period, with $1.2 million in financial remediation secured. Other outcomes included corrections to credit files, strengthened oversight of external providers, and new exception reporting, reconciliation, transaction monitoring and post-implementation testing controls.
AFCA updates Rules to cover genetic testing complaints
AFCA has amended its Rules following legislative changes concerning genetic testing protections in life insurance. The amendments to Rules C.1.4b) and d) enable AFCA to consider complaints relating to the solicitation or use of adverse genetic testing results in life insurance. The updated Rules and Operational Guidelines took effect on 8 October 2026.
AFCA introduces call transcription and AI-enabled summaries
AFCA has introduced automatic call transcription across its case management and customer service teams. Calls with case workers, ombudsmen, adjudicators and other specified AFCA teams are recorded and automatically transcribed. AFCA has also introduced AI-enabled call summaries to support complaint management and record keeping. Call participants can opt out of recording and transcription at the beginning of a call and may request access to their recording or transcript in accordance with AFCA’s privacy procedures.
AFCA reports record complaints in 2025–26
AFCA received almost 120,000 complaints in 2025–26 financial year, the highest annual number in its history, with complaints increasing across every industry. Banking and finance accounted for more than half, with 66,971 complaints, including 6,580 scam complaints and 6,038 complaints about unauthorised transactions. General insurance complaints increased to 36,022, with motor vehicle insurance the most complained-about product.
Superannuation complaints increased by 42% to 8,755, including an 80% increase in complaints about funds refusing to pay claims. Investment and advice complaints were significantly affected by the Shield and First Guardian collapses, while financial difficulty complaints increased by 17% to 5,566, with failures by financial firms to respond to requests for assistance remaining the leading issue.
New rules expand access to AFCA for digital asset users
More consumers using digital assets can now access the Australian Financial Complaints Authority (AFCA) for external dispute resolution following ASIC’s clarification of when digital assets constitute financial products. Where a business provides services involving financial products, it will generally need to hold an AFS licence and be an AFCA member. The requirements are set out in ASIC’s Information Sheet 225. Consumers dealing with AFCA-member digital asset providers can bring unresolved disputes to AFCA, including in relation to products such as cryptocurrencies, wrapped tokens, stablecoins, tokenised securities and digital asset wallets. AFCA has received more than 1,000 complaints relating to digital assets over the past six years.
The Star ordered to pay $260 million for AML/CTF breaches
The Federal Court has ordered The Star Entertainment Group (The Star) to pay a $260 million penalty for breaches of Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws. The Court found that The Star failed to maintain a compliant AML/CTF program and adequately monitor high-risk customers, including failures relating to customer verification, source of funds, due diligence and transaction monitoring. More than 1,200 customers were able to gamble through channels identified as carrying heightened money laundering and terrorism financing risks.
The Court found that The Star’s non-compliance undermined the ability of the Australian Transaction Reports and Analysis Centre law enforcement agencies to trace funds, disrupt unlawful activity and recover proceeds of crime. The $260 million penalty follows other significant penalties and regulatory action against The Star arising from related regulatory failures identified through state casino inquiries.
Full Federal Court finds consumer arbitration clause unfair and void
The Full Federal Court has upheld a finding that an arbitration clause in the standard form consumer contract of Plus500AU Pty Ltd (Plus500AU) was an unfair contract term and therefore void under the Australian Securities and Investments Commission Act 2001 (Cth). The Court found that the clause lacked transparency and created a significant imbalance in the parties’ rights and obligations, including because it did not clearly explain that customers would be unable to pursue court proceedings or participate in a class action.
The Court also found that Plus500AU had not established that mandatory arbitration was reasonably necessary to protect its legitimate interests. While recognising the legislative policy supporting arbitration, the Court confirmed that arbitration clauses in standard form consumer contracts remain subject to the unfair contract terms regime.
ASIC halts offers in Australian Secure Capital Fund mortgage schemes
ASIC made an interim stop order preventing Australian Secure Capital Fund Limited (ASCF) from offering interests in three registered managed investment schemes after identifying concerns with the product disclosure statement (PDS). ASIC was concerned that the PDS inadequately disclosed information about the funds’ loan portfolios and diversification, may have contained misleading information or omitted information about early withdrawal costs, and did not adequately explain the investor reserve account used to cover impairments and capital losses. On 19 October 2026, ASIC revoked the interim stop order after ASCF amended the PDS. The revised PDS contains improved disclosures concerning the funds’ loan portfolios, the investor reserve account and early withdrawal fees.
Hollard fined $2 million over insurance claim handling failures
The Federal Court has ordered Hollard Insurance Partners Limited (Hollard) to pay a $2 million penalty after Hollard admitted breaching its duty of utmost good faith in handling a home insurance claim. Following storm damage in October 2021, Hollard initially accepted the roof damage claim but took 15 months before reversing its position and rejecting it. The claim was affected by significant delays, periods of inaction and poor communication, while the home deteriorated and ultimately became uninhabitable.
Hollard ultimately paid $1.55 million, including payments reflecting the total loss of the home, but took more than three years from lodgement of the claim to finalise the payments. ASIC said the $2 million penalty is the first civil penalty imposed on an insurer for breaching the duty of utmost good faith and forms part of its broader focus on insurance claims and complaints handling.
ASIC issues interim stop order against Fidante
ASIC made an interim stop order preventing Fidante Partners Limited (Fidante) from issuing Class A units in the Ares Global Credit Income Fund due to concerns that its target market determination (TMD) was inappropriate and did not meet the design and distribution obligation. ASIC’s concerns included that the TMD described the product as suitable for investors seeking capital preservation and with a medium-to-high risk profile, permitted allocations of up to 50% of investable assets and specified an inappropriate timeframe for accessing capital. On 21 October 2026, ASIC revoked the interim stop order after Fidante amended the TMD to address ASIC’s concerns.
ASIC halts offers in Murdoch Clarke Mortgage Fund
ASIC made an interim stop order preventing Murdoch Clarke Mortgage Management Ltd (Murdoch Clarke) from offering interests in the Murdoch Clarke Mortgage Fund due to concerns with its PDS. ASIC identified deficiencies relating to disclosure of related-party transactions, fees and costs, investment risks and withdrawal arrangements, and was concerned that aspects of the PDS were not presented in a clear, concise and effective manner. On 2 November 2026, ASIC revoked the interim stop order after Murdoch Clarke issued a revised PDS addressing ASIC’s concerns.
Fortnum Private Wealth penalised $1.35 million for cybersecurity failures
The Supreme Court of NSW has ordered Fortnum Private Wealth Ltd (Fortnum) to pay a $1.35 million penalty after it admitted failing to adequately manage cybersecurity risks across its financial advice network. Between April 2021 and May 2023, Fortnum failed to implement an adequate cybersecurity policy, maintain appropriate oversight and monitoring of its authorised representatives’ cyber resilience, maintain sufficient specialist cybersecurity expertise and maintain adequate cybersecurity risk management systems.
The failures exposed Fortnum’s authorised representatives and around 55,000 retail clients to the risk of cyber attacks and cybercrime, including risks to sensitive personal and financial information. The Court also ordered Fortnum to pay $250,000 towards ASIC’s costs. ASIC noted that Fortnum has since strengthened its cybersecurity framework, including through mandatory cyber controls, annual reviews, enhanced training and specialist expertise.
ASIC cancels Walker Stores’ credit licence
ASIC has cancelled the Australian credit licence of Walker Stores Pty Ltd (in liquidation) (Walker Stores) following payments by the CLSR in respect of two unpaid determinations made by AFCA. The Compensation Scheme of Last Resort (CSLR) paid $4,106 and $18,310 to the respective complainants after Walker Stores failed to pay the AFCA determinations. ASIC cancelled the licence on 12 October 2026, as required where a licensee fails to pay an AFCA determination and the CSLR subsequently pays compensation.
ASIC has required Walker Stores to maintain its AFCA membership until 12 October 2027 so that complaints can continue to be lodged against it. The cancellation follows earlier enforcement action in which the Federal Court ordered Walker Stores to pay a $33.5 million penalty for unlawfully overcharging consumers under credit contracts.
ASIC sues former Falcon Capital directors over First Guardian
ASIC has commenced civil penalty proceedings against former Falcon Capital Limited (Falcon Capital) managing director and CEO David Anderson and former executive Chair and Chief Investment Officer Simon Selimaj, alleging serious failures in their management and oversight of the First Guardian. ASIC alleges that more than 6,000 Australians invested over $600 million in First Guardian, largely from superannuation, and that Falcon Capital invested around $270 million through controlled unregistered underlying funds, including investments involving inadequate documentation, security and due diligence and unmanaged conflicts of interest.
ASIC alleges that Mr Anderson controlled investment decisions without meaningful oversight, failed to disclose conflicts and failed to act in members’ best interests, while Mr Selimaj inadequately monitored Falcon Capital’s activities. ASIC is also seeking leave to commence proceedings against Falcon Capital, which is in liquidation, and is seeking declarations, civil penalties and disqualification orders.