ASIC tightens rules on AI-driven trading, APRA imposes licence conditions on ING and the RBA finds ASX still falls short 9 min read
September brought tighter rules for algorithmic and AI-enabled trading, licence conditions on ING Bank Australia over liquidity miscalculations, and another finding from the RBA that ASX's risk controls fall short. Several consultations close in October and November, including Treasury's proposals on funding a $170.3 million CSLR shortfall.
Change of laws and guidance
ASIC strengthens AI trading safeguards and streamlines market integrity rules
Who is this relevant for? All financial insitutions
The Australian Securities and Investments Commission (ASIC) has strengthened safeguards for automated and AI-enabled trading and streamlined regulatory requirements for securities and futures market participants through amendments to its Market Integrity Rules.
The reforms modernise trading system obligations, strengthen requirements for testing, monitoring and governance of trading algorithms, align Australia’s framework more closely with international standards and clarify obligations relating to false or misleading market conduct. The changes will take effect in 2028 following an 18‑month transition period and are intended to support market integrity while reducing regulatory complexity for market participants.
ASIC is also consulting on proposed updates to RG 265 and RG 266 to reflect the amended Market Integrity Rules, consolidate existing guidance and simplify compliance requirements. Submissions close on 5 November 2026.
ASIC remakes legislative instruments about managed investment schemes
Who is this relevant for? Funds
On 28 September 2026, ASIC remade several legislative instruments relating to managed investment schemes that were due to expire on 1 October 2026, continuing existing regulatory relief in a range of areas. The instruments are:
- ASIC Corporations (Serviced Apartment and Property Rental Schemes) Instrument 2026/192;
- ASIC Corporations (Charitable Investment Fundraising) Instrument 2026/730;
- ASIC Corporations (School Enrolment Deposits) Instrument 2026/709;
- ASIC Corporations (Horse Schemes) Instrument 2026/723; and
- ASIC Corporations (Attribution Managed Investment Trusts) Instrument 2026/726.
Consultation materials, stakeholder submissions and ASIC's response are available here.
ASIC remakes dollar disclosure and exempt documents relief
Who is this relevant for? All financial insitutions
On 25 September 2026, ASIC remade two legislative instruments providing relief from certain dollar disclosure and Australian financial services licensing requirements, replacing instruments due to expire on 1 October 2026. The instruments are:
ASIC Corporations (Disclosure in Dollars) Instrument 2026/719, which also extends dollar disclosure relief to certain risk products offered by discretionary mutual funds; and
ASIC Corporations (Financial Product Advice – Exempt Documents) Instrument 2026/718.
Consultation materials and ASIC's response are available here.
ASIC extends market relief for exchange-traded derivatives and securities for five years
Who is this relevant for? Financial markets
Following consultation, ASIC remade three legislative instruments with minor updates and extended a fourth, with the existing relief remaining unchanged. The relief simplifies disclosure requirements and facilitates trans-Tasman securities settlement, foreign securities transfers and securities lending.
Enforcement action and decisions
ASIC issues infringement notices to three super funds for misleading investment disclosures
Who is this relevant for? Superannuation
On 8 September 2026, ASIC announced that it had issued six infringement notices totalling $118,800 to trustees of three superannuation funds after identifying alleged false or misleading representations about their superannuation investment options during a review of disclosures on trustees' websites. Australian Retirement Trust, Telstra Super (now Telstra Servicing) and Australian Meat Industry Superannuation (trustee of Australian Food Super) each received two notices totalling $39,600.
ASIC alleged that the trustees' websites contained inaccurate representations about asset allocation, investment strategy time horizons or the composition of certain investment options. Payment of an infringement notice is not an admission of guilt or liability. This enforcement action forms part of ASIC's ongoing focus on holding superannuation trustees to account for disclosure failures.
APRA imposes licence conditions on ING Bank Australia to address material liquidity breaches
Who is this relevant for? Banks
On 3 September 2026, the Australian Prudential Regulation Authority (APRA) imposed licence conditions on ING Bank Australia, requiring it to hold additional capital and liquidity after identifying that the bank had materially breached its minimum liquidity requirements through long-term miscalculations.
The bank must undertake independent reviews, implement remediation measures and maintain a $50 million operational risk capital add-on and higher liquidity requirements, highlighting APRA’s focus on robust risk management, governance and prudential reporting across the banking sector.
Federal Court declares Netwealth contravened the Corporations Act in relation to First Guardian
Who is this relevant for? Superannuation
On 20 August 2026, the Federal Court declared that Netwealth contravened the Corporations Act 2001 (Cth) in relation to the First Guardian Master Fund after failing to undertake adequate due diligence, assess investment risks and disclose potential illiquidity risks to members.
The outcome follows Netwealth's agreement to pay more than $100 million to compensate over 1,000 affected investors. The decision underscores superannuation trustees' responsibility to conduct rigorous oversight of investment options and proactively manage risks to protect members' retirement savings.
The judgment is available here.
Regulatory guidance, commentary and consultation
ASFA receives ACCC authorisation for superannuation information-sharing regime to counter cybersecurity risk
Who is this relevant for? Superannuation
On 17 September 2026, the Australian Competition and Consumer Commission (ACCC) granted the Association of Superannuation Funds of Australia (ASFA) and participating superannuation funds and service providers authorisation for five years to exchange information through industry platforms to identify and respond to cyber and financial crime threats.
The authorisation also permits participants to collectively negotiate with third parties to establish the information-sharing platforms. It is subject to a condition requiring ASFA to provide the ACCC with ongoing access to the platforms.
Compensation Scheme of Last Resort 2026–27 special levy
Who is this relevant for? All financial insitutions
Treasury is consulting on the proposed allocation of the 2026-27 Compensation Scheme of Last Resort (CSLR) special levy after the revised levy estimate for the personal financial advice sub-sector exceeded the $20 million levy cap, creating a projected shortfall of $170.3 million.
The consultation proposes how the shortfall should be allocated under the CSLR waterfall framework and may affect levy obligations across financial services sub-sectors.
Submissions close on 7 October 2026.
Enhanced data collection for managed investment schemes
Who is this relevant for? Managed investment schemes
From 23 September 2026, Treasury is consulting on proposals to improve regulatory visibility of managed investment schemes (MISs). The proposals would expand data collected for registered MISs, introduce recurring reporting requirements and potentially require notification and targeted reporting by unregistered MISs to improve regulators' ability to identify emerging risks and respond to potential consumer harm.
The reforms would increase reporting obligations for MIS operators.
Submissions close on 23 October 2026.
RBA assesses ASX clearing and settlement facilities
Who is this relevant for? Markets
On 23 September 2026, the Reserve Bank of Australia (RBA) released its 2026 assessment of ASX’s clearing and settlement facilities against the Financial Stability Standards. The assessment period was 1 July 2025 to 30 June 2026.
While many standards were rated as ‘observed’ or ‘broadly observed’, ASX was still not meeting the RBA’s expectations in several areas, including governance, risk management, credit risk and operational risk.
The RBA noted that shortcomings persist in the implementation and control of ASX’s risk models and data.
AFCA consults on Scam Rules ahead of Scams Prevention Framework launch
Who is this relevant for? All financial insitutions
From 31 August to 28 September 2026, the Australian Financial Complaints Authority (AFCA) consulted on proposed changes to its Rules that would establish a new jurisdiction for complaints under the Scams Prevention Framework (SPF), which the Australian Government has authorised AFCA to administer as the single external dispute resolution scheme from 31 March 2027.
The proposed Scam Rules cover the regulated banking, digital platform and telecommunications sectors, extend AFCA's jurisdiction to suspected scam activity, and set out a new multi-party complaint framework. AFCA will review submissions and put updated Rules to ASIC for approval by November 2026, with the finalised Rules expected in early 2027.
APRA releases 2026 superannuation performance test and product insights
Who is this relevant for? Superannuation
On 28 August 2026, APRA released the results of the 2026 superannuation performance test. Twelve of 547 products failed the test, including one MySuper product and 11 platform trustee-directed products.
APRA’s product performance data shows administration fees continue to fall, but platform trustee-directed products remain more expensive and are likelier to underperform.
APRA also noted that the Government is considering reforms to strengthen the performance test.
APRA's insights paper is available here.
APRA's methodology paper is available here.
Retirement Reporting Framework: Response to consultation and final consultation on the revised draft reporting standards
Who is this relevant for? Superannuation
On 10 September 2026, APRA responded to feedback received during its March 2026 consultation on data collection for the Government’s Retirement Reporting Framework by releasing revised draft reporting standards for final consultation.
The revisions streamline reporting requirements and refine key metrics, definitions and the treatment of retirement products, member cohorts and advice arrangements. RSE licensees must submit any material implementation, data or confidentiality issues by 9 October 2026.
Financial Innovation Strategy (September 2026)
Who is this relevant for? All financial insitutions
The Financial Innovation Strategy is the Australian Government’s roadmap for ensuring Australia’s financial system remains innovative, competitive, trusted and resilient by supporting the responsible adoption of technologies such as AI, digital assets, data sharing and modern payments infrastructure.
APRA and ASIC commence consultation on FAR streamlining
Who is this relevant for? All financial insitutions
On 31 August 2026, APRA and ASIC commenced consultation on proposed changes to streamline aspects of the Financial Accountability Regime (FAR), including removing key functions requirements and reducing accountability map reporting obligations.
The changes are intended to reduce compliance burden for accountable entities and accountable persons while maintaining existing accountability standards, with final reforms expected by the end of 2026 and commencement in early 2027.
Consultation closed on 2 October 2026.
Payments System Board update: August 2026 meeting
Who is this relevant for? All financial insitutions
At its meeting on 27 August 2026, the Payments System Board discussed a range of issues, including:
ASX clearing and settlement facilities assessment: The Board endorsed the RBA's annual assessment of ASX. While progress has been made on CHESS resilience, ASX still needs to strengthen its governance, culture and risk management.
Future of A2A payments: The Board welcomed progress on a roadmap to modernise account-to-account (A2A) payments. Industry participants need to agree on key issues, including the future of the Bulk Electronic Clearing System, resilience and contingency arrangements, bulk and pull payment capabilities that meet end users’ needs, account reach gaps and priorities for standardisation. They also need to work together to deliver improvements.
RITS and a tokenised financial system: The Board supported consultation on how the Reserve Bank Information and Transfer System (RITS) can support tokenised wholesale asset markets and tokenised money in Australia. The aim is to ensure Australia has the infrastructure for safe and scalable tokenised finance.
Cash distribution regulatory framework: The Board welcomed the commencement of the Cash Distribution Framework Act 2026 (Cth). The framework supports reliable access to cash while allowing the RBA to step in if serious risks to the cash system arise.
Insights from the APRA-ASIC Industry Roundtables
Who is this relevant for? All financial insitutions
APRA and ASIC have warned that frontier AI poses a growing risk to Australia’s financial system by increasing the speed, scale and sophistication of cyber and operational threats. Following industry roundtables, the regulators have reinforced expectations that entities strengthen governance, cyber resilience, incident response and third-party risk management.
Financial institutions are expected to strengthen preparedness and demonstrate they can respond effectively to AI-driven threats, with regulators signalling ongoing supervisory focus in this area.
APRA publishes 2026-27 Corporate Plan
Who is this relevant for? All financial insitutions
On 20 August 2026, APRA published its latest Corporate Plan with a focus on ensuring the risk management practices of banks, insurers and superannuation trustees keep pace with a rapidly moving threat environment.
APRA’s supervision priorities for 2026-27 include:
- ensuring regulated entities are strengthening their resilience to AI-enabled cyber threats and stepping up APRA’s focus on quantum computing risks;
- assessing how entities identify, assess and manage risks associated with industry’s concentrated reliance on common technology platforms and material service providers;
- reinforcing minimum expectations for managing geopolitical risk and more intensively supervising entities to ensure gaps are addressed promptly;
- undertaking targeted reviews of banks’ lending practices to ensure standards remain prudent amid economic uncertainty;
- starting work on a new system-risk stress test to further strengthen APRA’s understanding of risks from linkages between sectors and the overall impact on financial stability; and
- requiring selected large superannuation trustees to undertake independent reviews of valuation governance.
Key policy priorities include:
- consulting on superannuation reforms, including a risk sensitive capital framework to support the proposed new member compensation scheme;
- finalising new requirements that will strengthen governance practices of banks, insurers and superannuation funds, expected to commence in 2028;
- finalising changes to the bank capital framework and consulting on updates to bank liquidity standards;
- jointly consulting with ASIC on proposed changes to the FAR to reduce administrative burden without undermining accountability standards; and
- developing a new prudential framework for large stored value facility providers and working with ASIC on joint guidance to support implementation.