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2025 regulatory enforcement trends and what they mean for the year ahead
2025 regulatory enforcement trends and what they mean for the year ahead

Transparency and integrity of markets

What have been the key regulatory and enforcement developments in Australia in 2025?

Key developments and enforcement action for 2025 included:

  • ASIC brought proceedings against ANZ in relation to inaccurate reporting of certain secondary market bond trading data and the manner in which ANZ provided hedging services during a 2023 Government bond issuance (as well as ANZ's related obligations as a financial services licensee). The Federal Court approved a settlement of the matter in December 2025.1 (APRA also accepted an EU from ANZ to address weaknesses in the bank’s non-financial risk management practices and risk culture.)2 There were, too, proceedings against Macquarie Securities for allegedly engaging in misleading conduct regarding its reporting of short sales for a 14-year period3; and several prosecutions of individuals for insider trading, which aligns with the regulator's recent establishment of a dedicated team to target the practice.4
  • There was an ASIC independent inquiry into the ASX after an interim report identified shortcomings in its governance, capability, risk management and culture.5 ASIC also imposed a capital charge of $150 million on ASX (historically, capital charges have been imposed by APRA).
  • In November 2025, the International Organization of Securities Commissions published a final report on pre-hedging.6 ASIC has indicated it is considering how to supplement its guidance for market intermediaries on pre-hedging practices.7
  • There was a significant focus by ASIC on the transparency and integrity of private markets and private capital. Following the release in February 2025 of a discussion paper on Australia’s evolving capital markets, and the dynamics between public and private markets,8 ASIC has released a series of reports in relation to the private credit sector and private capital market reporting.9 In these, it has identified concerns relating to governance, confidential information, disclosure of information to investors and valuation practices.10 ASIC has also already commenced some enforcement action in this space. In particular, it:
    • made interim stop orders regarding certain products offered under the La Trobe Australian Credit Fund, TruePillars Investment Fund and RELI Capital Mortgage Fund, having identified issues with the target market determinations or product disclosure statements for those products in the course of its retail private credit surveillance; and11
    • commenced a number of proceedings in relation to the collapse of the Shield Master Fund and First Guardian Master Fund—including against superannuation trustees, research houses, advisers and adviser groups12 (which, in some cases, are proposed to be resolved through EUs).
  • APRA has, additionally, issued a number of prudential standards relating to financial resilience,13 conducted a thematic review of the governance of superannuation platform products,14 accepted an EU from Netwealth,15 and imposed additional licence conditions on other platform operators.16

What are the likely regulatory and enforcement developments in Australia in 2026?

  • Market misconduct and systemic compliance failures remain at the forefront of ASIC's enforcement priorities for the coming year.17
  • The operation of the ASX is likely to remain a continued focus, with the expert panel due to provide its final report to ASIC by 31 March 2026.18
  • Private capital is also likely to remain a key focus. ASIC's private and public roadmap of activity for the next 12-18 months indicates that the regulator will, among other things:
    • conduct further surveillance of the funds management sector (including, in particular, private credit funds with real estate lending strategies) and of the audited financial reports of private companies;
    • issue a regulatory catalogue summarising fund managers' legal obligations and regulatory guidance; and
    • take enforcement action for breaches of the law and to deter future misconduct.19
  • ASIC has identified a series of compliance issues informing the actions it will take in relation to private credit funds,20 summarised principles that it considers the industry should use as a benchmark to assess its current practices,21 and now also issued its catalogue of key legal obligations for private credit funds.22 We can expect to see further investigations commenced and (potentially) enforcement action taken as a result of the surveillance. ASIC is likely to focus on breaches of the compliance issues and/or principles identified in its reports.
  • APRA has signalled that its focus will be on strengthening crisis readiness for the Australian financial system (consistent with the prudential standards referred to earlier),23 and that strengthening of superannuation funds' governance and operational risk management practices is an area of ongoing regulatory focus, given the growth of the sector and its interconnectedness with other parts of the financial system.24

Who are the key regulators in relation to this area?

ASIC, APRA.

What are the key sectors of focus?

Financial services, superannuation.

Footnotes

  1. ANZ admits widespread misconduct and agrees to pay $240 million in penalties (link).  

  2. APRA accepts Court Enforceable Undertaking from ANZ and increases capital add-on to $1 billion | APRA  

  3. ASIC sues Macquarie Securities for repeated and systemic misleading conduct (link).

     

  4. ASIC announces new enforcement priorities with a focus on cost of living pressures (link); Darryl Mapleson pleads guilty in Beacon Minerals insider trading case (link); Antonio Stella indicted on insider trading charges (link); ASIC secures guilty pleas in Telegram ‘pump and dump’ action (link); ASIC sues Delta Power & Energy (Vales Point) Pty Ltd for alleged futures market and financial benchmark manipulation (link); Melbourne man sentenced in Kidman Resources insider trading case (link); Charges laid in Platinum Asset Management insider trading case (link).  

  5. ASIC announces transformational package to safeguard Australia’s financial markets in response to ASX Inquiry interim report (link).  

  6. Market Integrity Update – Issue 173 - November 2025 (link).  

  7. ASIC’s guidance for market intermediaries on pre-hedging (link).  

  8. See Regulatory scrutiny of private capital increases: link. 

  9. REP 814 - 22 September 2025 (link); REP 820 - 5 November 2025 (link); REP 821 - 5 November 2025 (link); REP 822 - 5 November 2025 (link); and REP 823 - 5 November 2025 (link).  

  10. See Regulatory scrutiny of private capital increases (link); ASIC’s private markets push: what industry should prepare for (link) and ASIC's evolving capital markets report: what it means for industry (link).  

  11. ASIC issues DDO stop orders against La Trobe Australian Credit Fund (link); ASIC issues DDO stop order against RELI Capital Mortgage (link); ASIC halts offers of TruePillars Investment Trust (link).

  12. Macquarie admits to Shield contraventions and commits to pay affected members (link); ASIC sues Equity Trustees alleging due diligence failures relating to Shield (link); ASIC sues Diversa Trustees alleging failures relating to First Guardian (link); Netwealth admits to First Guardian failures and agrees to compensate affected members $100 million (link); ASIC sues SQM Research alleging misleading reports related to Shield (link); ASIC takes further action against Ferras Merhi over First Guardian and Shield superannuation advice (link); ASIC sues Interprac over alleged Shield and First Guardian licensee failures (link).  

  13. See APS 110 – Capital Adequacy (link), APS 111 – Capital Adequacy: Measurement of Capital (link), APS 112 – Capital Adequacy: Standardised Approach to Credit Risk (link), APS 116 – Capital Adequacy: Market Risk (link), APS 117 – Interest Rate Risk in the Banking Book (link), APS 210 – Liquidity (link).  

  14. APRA calls for stronger action by platform trustees (link).  

  15. APRA accepts court enforceable undertaking from Netwealth (link).  

  16. APRA imposes additional licence conditions on Equity Trustees Superannuation Limited (link); APRA imposes additional licence conditions on Diversa Trustees Limited (link).  

  17. See ASIC enforcement priorities 2026 (link).  

  18. Inquiry into the ASX (link).  

  19. Advancing Australia’s capital markets:ASIC's roadmap for the next 12-18 months Link.  

  20. Link. These are: transparency (investment information and reporting), marketing and distribution practices, treatment of fees, management of conflicts of interest, governance (including independent or active trustees and audit), valuation practices, liquidity risk management practices and credit risk management practices (including arrears, defaults and impairment losses).  

  21. Link. These are: stewards of other people’s money, organisational capability, transparency, design and distribution, fees and costs, conflicts of interest, governance, valuations, liquidity and credit risk.  

  22. ASIC issues catalogue of key legal obligations for private credit funds Link.  

  23. APRA - System Risk Outlook (link).  

  24. APRA - System Risk Outlook (link).