ASIC issues stop orders against two private credit funds, AFCA logs a record year of complaints and ASIC consults on the new digital asset laws 8 min read
October brought interim stop orders against two private credit funds, a record tally of almost 120,000 annual complaints to AFCA, and ASIC's proposed rules for the digital asset regime starting in April. Several consultations close in November, including Treasury's proposals to tackle fraud and financial abuse.
Change of law and guidance
ASIC makes instrument to increase net tangible assets requirement for responsible entities
Who is this relevant for? Funds / Asset management
ASIC has made ASIC Corporations (Amendment) Instrument 2026/708, which amends ASIC Corporations (Financial Requirements for Responsible Entities, IDPS Operators and Corporate Directors of Retail CCIVs) Instrument 2023/647 to increase the net tangible assets (NTA) requirements for responsible entities of registered managed investment schemes from 1 July 2027. The minimum NTA thresholds will increase to reflect inflation and be adjusted annually.
ASIC has also updated Regulatory Guide 166 AFS licensing: Financial requirements to reflect the upcoming changes.
Enforcement action and decisions
ASIC issues DDO stop order against Fidante Partners
Who is this relevant for? Private credit
ASIC has issued an interim stop order preventing Fidante Partners from issuing Class A units in the Ares Global Credit Income Fund, due to concerns that its target market determination (TMD) is not appropriate, and does not comply with its design and distribution obligations.
The action forms part of ASIC’s ongoing scrutiny of private credit funds, and highlights the need for issuers to ensure TMDs appropriately reflect the objectives, financial situation and needs of retail investors.
ASIC halts offers in Murdoch Clarke mortgage scheme
Who is this relevant for? Funds / Asset management
ASIC has made an interim stop order on the PDS issued by Murdoch Clarke Mortgage Management for interests in the Murdoch Clarke Mortgage Fund, preventing further offers, issues, sales or transfers of interests in the fund.
ASIC identified concerns with disclosures pertaining to related party transactions, fees and costs, investment risks and withdrawals, as part of its broader surveillance of private credit funds. The action reinforces ASIC’s focus on clear and adequate disclosure to retail investors.
Regulatory guidance, commentary and consultation
APRA and RBNZ complete trans-Tasman bank stress test
Who is this relevant for? Banks
APRA and RBNZ have announced the completion of the 2026 Trans-Tasman Stress Test, their first joint stress testing exercise since 2017.
The results indicated that the Australian and New Zealand banking systems would remain resilient through a severe economic downturn, despite significant pressure on capital and liquidity. APRA and RBNZ will use the findings to inform future supervision, risk assessments, crisis management and stress testing, with APRA to publish detailed findings for Australian banks later this year.
ASIC consults on implementation of new digital asset laws
Who is this relevant for? Digital assets
ASIC is consulting on proposed guidance and standards to implement the new regulatory framework for digital asset platforms and tokenised custody platforms commencing on 8 April 2027.
The proposals set out how the new regime will operate in practice, including requirements for affected businesses to obtain or vary an AFS licence, and comply with new disclosure, asset-holding, trading and settlement and financial requirements. ASIC is also proposing streamlined licensing arrangements for certain existing AFS licensees and applicants transitioning to the new regime.
Submissions close on 27 November 2026.
ASIC proposes to remake IDR data reporting instrument
Who is this relevant for? All
ASIC is consulting on its proposal to remake for a further five years the ASIC Corporations (Internal Dispute Resolution Data Reporting) Instrument 2022/205, which specifies the internal dispute resolution (IDR) information financial firms must report to ASIC.
The only substantive change proposed is to allow small banks to report IDR data annually rather than every six months. ASIC is also seeking feedback on whether the reduction in reporting frequency proposed for small banks should be extended to all reporting firms.
Submissions close on 13 November 2026.
Treasury consultation—Crypto asset tax transparency draft legislation
Who is this relevant for? Digital assets / Crypto
Treasury is consulting on draft legislation to improve tax transparency for crypto assets. The draft legislation would introduce the OECD Crypto-Asset Reporting Framework into Australian law, establish a domestic reporting regime for crypto asset transactions involving Australian residents and update the existing Common Reporting Standard.
Submissions closed on 28 October 2026.
APRA 2025–26 Annual Report
Who is this relevant for? All
APRA has published its 2025–26 Annual Report, setting out how it has worked to maintain the safety and stability of APRA-regulated financial institutions.
Key developments include:
- total supervised assets surpassing $10 trillion for the first time;
- publication of APRA's first System Risk Outlook and inaugural System Risk Stress Test;
- the commencement of Prudential Standard CPS 230 Operational Risk Management; and
- continued progress on nine initiatives to reduce unnecessary regulatory burden, including proposed reforms to bank capital, governance and the Financial Accountability Regime.
For regulated entities, this signals continued supervisory emphasis on cyber, operational and AI-related risk management, new mortgage lending limits in banking, and heightened scrutiny (including enforcement) of superannuation trustee governance, particularly around platforms, with further consultations expected on capital, governance and tiered-framework reforms.
ASIC 2025–26 Annual Report
Who is this relevant for? All
ASIC has published its 2025–26 Annual Report.
Key developments include:
- ASIC commenced 260 formal investigations, 32 civil proceedings and completed 1,012 surveillances; and
- ASIC's media release highlighted the finding that ASIC secured court orders for civil penalties of $830 million, and helped secure $580 million in repayments and refunds for customers, which ASIC Chair Sarah Court said reflected ASIC's focus on 'addressing misconduct and delivering outcomes for consumers, investors and the market'.
Ms Court said ASIC intends to build on this momentum and 'push for even greater impact' in the next financial year.
ASIC calls for stronger scrutiny of super fund valuations
Who is this relevant for? Superannuation
ASIC has published Report 841 Accounting for your super: Super fund financial reporting and audit 2025–26, finding that further improvement is needed in how some superannuation funds and auditors assess and scrutinise valuations of unlisted investments.
ASIC identified ongoing concerns with trustees’ oversight of valuations and the adequacy of audit scrutiny, and emphasised that trustees remain responsible for ensuring valuations are accurate and reliable where external fund managers are used.
In 2026–27, ASIC will continue its RSE surveillance program, expand it to managed investment schemes, and consider regulatory or enforcement action where significant breaches of the Corporations Act 2001 (Cth) are identified.
Treasury consultation—tackling fraud and financial abuse
Who is this relevant for? Superannuation
Treasury is consulting on measures to strengthen protections against fraud and financial abuse involving Australia’s tax, superannuation and other payment systems. The consultation seeks feedback on:
new ATO powers to issue garnishee notices over jointly held bank accounts to recover tax debts, alongside broader mechanisms to strengthen the ATO’s and Tax Practitioners Board’s ability to prevent, detect and respond to fraud against the taxation and superannuation systems; and
potential policy options to address perpetrators of financial abuse who use the tax, superannuation, social security, family payment and child support systems to create debts as a form of coercive control.
Submissions close on 27 November 2026.
Consultation on the Banking Regulations 2026
Who is this relevant for? Banks
Treasury is consulting on the draft Banking Regulations 2026 (Cth), which would remake the Banking Regulation 2016 (Cth) before it expires on 1 April 2027.
The draft regulations are largely unchanged from the Banking Regulation, but would increase the covered bond issuance limit for ADIs from 8% to 12% of assets, and make minor technical updates.
Submissions closed on 30 October 2026.
Consultation on confidentiality of data collected under SRS 604.0
Who is this relevant for? Superannuation
APRA is consulting on whether specified data collected under SRS 604.0 RSE Licensee Profile should be determined to be non-confidential under s57 of the Australian Prudential Regulation Authority Act 1998 (Cth).
The proposed determination would allow APRA to continue publishing the data in its existing superannuation statistical publications, without changing the scope or format of the data currently published. Affected RSE licensees may wish to consider whether disclosure could adversely affect their commercial interests.
Submissions close on 6 November 2026.
Consultation on implementing parts of the better regulation measures
Who is this relevant for? Banks
The proposed changes would increase the relevant withdrawal limit from $15,000 to $30,000, and allow withdrawals to pay court filing fees for probate and letters of administration applications. They would also raise the enhanced FAR notification threshold for banks from $20 billion to $30 billion in assets, reducing additional FAR reporting obligations for banks below the new threshold.
Submissions close on 20 November 2026.
Financial Innovation Committee EOIs
Who is this relevant for? All
The Federal Government is seeking EOIs from financial sector leaders and experts to join the new Financial Innovation Committee, which will bring together government, regulators and industry to identify opportunities to support financial innovation and improve regulatory coordination.
The deadline for EOIs is 27 November 2026.
ASIC identifies gaps in mortgage brokers’ best interests duty practices
Who is this relevant for? Consumer credit
ASIC’s review of mortgage brokers’ best interests duty and complaints handling practices found that, while practices generally aligned with its guidance, the industry should strengthen how it demonstrates that home loan recommendations are in customers’ best interests. ASIC identified scope to improve loan recommendation practices, supervision and complaints handling, particularly where a lower-cost loan is available. ASIC expects mortgage broker licensees to consider the findings and address gaps in their practices.
AFCA Annual Review 2025–26 reports record complaints
Who is this relevant for? All
AFCA has released its Annual Review for the 2025–26 financial year, reporting the highest number of complaints in its history, with almost 120,000 lodged by consumers and small businesses. AFCA said the record number of complaints indicates ongoing financial pressures and called for firms to resolve issues early where they can. Key findings were:
Complaints increased across every industry, but banking and finance disputes made up more than half of all complaints, with 66,971 lodged. Scams and unauthorised transactions were the top two issues in banking and finance, with 6,580 scam complaints and 6,038 unauthorised transactions complaints.
For general insurance, 36,022 complaints were lodged, marking a fifth year of growth for the industry. The most complained-about product was motor vehicle insurance, with 14,430 complaints lodged.
While complaints about life insurance remained broadly stable at 1,561, complaints about funeral insurance had a spike and continue to be an area of concern.
Superannuation complaints rose 42% to 8,755, while complaints about funds refusing to pay claims rose 80%.
Large-scale investment collapses were the main driver of investments and advice complaints, which rose to 6,542, largely in relation to the Shield and First Guardian Master Funds.
Financial difficulty complaints rose 17% to 5,566, with financial firms failing to respond to requests for assistance remaining the top issue.
The Australian Scams Ombudsman, operated by AFCA, will begin accepting complaints about banks, telcos and digital platforms from 31 March 2027.
ASIC updates guidance on AFCA oversight for the Scams Prevention Framework
Who is this relevant for? Banks
ASIC is consulting on proposed updated guidance for its oversight of AFCA ahead of the incoming Scams Prevention Framework.
ASIC has proposed updates to RG 267 Oversight of the Australian Financial Complaints Authority, which it says simplify the guidance, and ensure it remains clear and current. For example, the proposed updates remove certain content now covered by AFCA's ASIC-approved scheme rules for complaints resolution.
Feedback can be provided on the proposed changes until 24 November 2026.