ASIC

📣 From major announcements to key enforcement actions – here’s your ASIC News recap for November 📰 ● ASIC and Australian Prudential Regulation Authority (APRA) urge super trustees to accelerate progress on retirement support for members. ● ASIC announces approach to regulation of employee redundancy funds. ● ASIC sues Interprac over alleged Shield and First Guardian licensee failures and SQM Research over allegedly misleading reports relating to Shield. ● Cbus has been ordered by the Federal Court to pay $23.5 million for serious failures in processing members death benefits and insurance claims. ● Two Australian companies in the GFG Alliance group have paid infringement notices totalling $375,600, following their alleged failure to lodge audited financial reports for the year ended 30 June 2024 within the statutory timeframe. ● ASIC suspends AFS licence of Surety Compliance Limited. This follows Surety’s failure to meet minimum financial requirements and hold professional indemnity insurance. ● ASIC Commissioner Kate O'Rourke delivered keynote address at the Women in Payments Gala Evening in Sydney where she addressed balancing consumer protections and consumer demands in the fast-moving world of payments. ● Private credit practices, financial reporting misconduct, insurance complaints and claims handling, and misleading pricing are among a range of new enforcement priorities ASIC has unveiled for 2026. ● ASIC sues suspended WA mineral exploration company AVZ Minerals and directors for disclosure failures. ● Defence systems manufacturer Electro Optic Systems Holdings Limited admits to breaching its continuous disclosure obligations following an ASIC investigation. ● ASIC drives car finance providers to improve consumer outcomes. ● ASIC Commissioner Alan Kirkland delivered keynote address at the Ecstra Foundation Financial Wellbeing Summit in Sydney addressing financial capability and consumer protection. ● ASIC has released its roadmap to promote strong, efficient, and globally competitive capital markets in Australia. ● ASIC review raises fresh concerns over risks to retirement savings from poor SMSF advice. ● Former CEO of AI marketing company Metigy pleads guilty to misleading investors and dishonestly using his position. Tap the link in the comments to read more in ASIC’s Newsroom ⤵

ASIC and Australian Prudential Regulation Authority (APRA) 2025 Retirement Income Covenant Pulse Check reveals a widening gap in how trustees are helping members transitioning to, and in retirement. The report highlights: ● Too many trustees have only made incremental improvements since the introduction of the Retirement Income Covenant (RIC) ● Despite RIC obligations being introduced over three years ago, the gap is widening between trustees actively promoting better retirement outcomes for their members ● Some trustees are leading with innovation and best practice, whilst others are falling behind ASIC Commissioner Simone Constant said the over 1.5 million Australians already in retirement and the wave of 2.5 million entering retirement over the next decade, deserve better from their superannuation trustees.  ‘Retirees entrust nearly $600 billion to super trustees, who must uphold confidence by prioritising retirement strategies that meet customer needs. This will grow in importance as retirements surge, with two in five trustees expected to have over half their members retired by 2045.’ ASIC and APRA are committed to holding superannuation trustees to account for improving the experience of members approaching and in retirement, in line with the objective of the RIC. Tap the link in the comments section to read the full media release.

What’s the biggest opportunity for Australia’s economy over the next five years? We put this question to delegates at this year’s #ASICForum2025. Do you agree that AI, technology, and collaboration are the biggest opportunities for our economy? Share your thoughts in the comments.

Private credit practices, financial reporting misconduct, insurance complaints and claims handling, and misleading pricing are among a range of new enforcement priorities ASIC has unveiled for 2026. Deputy Chair Sarah Court said the new enforcement priorities have been designed to protect consumers from financial harm and uphold the integrity of Australia’s financial markets. Tap the link in the comments to read the full media release.

How can we build trust and confidence in Australia's institutions? During the first plenary session of the #ASICforum2025, ASIC Chair Joe Longo, Australian Statistician Dr David Gruen AO, CEO of the Future Fund Dr Raphael Arndt, and CEO of Soul Patts Jaki Virtue shared fresh insights into the biggest challenges and opportunities our economy currently faces, and into the future. On the topic of institutional trust, ASIC Chair Joe Longo emphasised the erosion of trust, its generational aspect, and ASIC’s role post-Royal Commission. He highlighted the need for ASIC to tackle difficult problems and support innovation, technology, and market growth. “Australia has strong institutions. I don't want the Australian people, business or investors, or consumers to lose confidence in their regulator. ASIC has come a long way to re-establish itself as a strong regulatory and active enforcement agency," said ASIC Chair Joe Longo. “We will be tackling the big problems. It's not just about enforcement, it's also about the work we are doing with private and public markets. ASIC is very interested in innovation in technology, in facilitating the growth of our markets in a safe way for everybody.”

Poor financial advice related to the establishment of self-managed super funds (SMSFs) could be putting some Australians’ retirement savings at risk. ‘People often set up an SMSF because they think it will give them more control over their retirement savings, but they aren’t suitable for everyone,’ said ASIC Commissioner Alan Kirkland. ‘SMSF trustees should be aware of the associated costs, responsibilities and risks. People who move their super from an APRA-regulated fund to an SMSF also lose important protections, including the benefits of prudential regulation and the ability to make a complaint about the fund or its trustees to AFCA. The SMSF sector in Australia is growing, accounting for around $1 trillion, or nearly a quarter, of the $4.3 trillion superannuation sector. In the year to June 2025, 41,980 new funds were established, an increase from 33,032 establishments the previous year. Commissioner Kirkland stressed the importance of maintaining high standards of personal financial advice in the context of this growth in SMSFs. Tap the link in the comments to read the media release.

🚨Consumer Alert🚨 Our latest Moneysmart campaign is helping inform Australians how to reduce the risk of losing their retirement savings. We’re informing people to be wary of investment schemes (in particular those that invest in property) offering unrealistic returns and using high pressure sales tactics, including cold calling, and click bait online advertising, targeting superannuation funds.   We encourage you to share this message with your friends and family. A conversation could make all the difference. Don't risk your future. Protect your Super. Tap the link in the comments to learn how to protect your super.

“Australia must innovate or stagnate. Seize the opportunity or be left behind.” This was the key message from ASIC Chair Joe Longo during his recent address at the National Press Club, where he spoke about Australia’s financial markets. He also highlighted the following: ● Capital markets are evolving and technology will accelerate these changes. ● Australia faces a choice – to innovate or stagnate. ASIC wants to be a backer, not a blocker of innovation and supports public and private collaboration. ● We must act now to put in place the foundations and the guardrails for the markets we want in the future – and this includes regulatory and law change. Tap the link in the comments to read the full transcript and roadmap.

‘This roadmap lays out the choices and future of Australia’s markets. We want our markets – private and public – to grow. That growth means stronger businesses, more jobs and a boost to our economy,’ said ASIC Chair Joe Longo. ASIC’s latest report outlines a roadmap to unlock opportunities and tackle emerging risks in Australia’s public and private markets through embracing new capital flows and technologies, keeping pace with evolving investor needs. ‘At the heart of this roadmap is a clear message, that Australia and ASIC want to be backers, not blockers of investment and capital.’ Here’s some report highlights: ● ASIC acknowledges the increasing role private credit is playing in Australia’s financial system and sets out clear principles, grounded in the law, for the private credit sector and wider private markets to lift practices and promote confident and informed participation by investors and borrowers. ● Superannuation is a driving structural force in these market dynamics and trustees play a key role in retail investors exposure to private markets. ASIC outlines continued supervision of market conduct including superannuation trustees. ● ASIC needs better tools across private markets to confidently supervise funds, including notification of wholesale funds in operation, data collection, and annual audited financial reports for wholesale funds. ● In public markets, ASIC notes the need for market operators to consider further innovation and for government to closely consider director responsibilities, free float requirements and facilitating more foreign listings. Tap the link in the comments to read the full media release in ASIC’s Newsroom.

📒 ASIC has released findings from its financial reporting and audit surveillances for the 12 months to 30 June 2025. 🔍Our review of 254 company financial reports, 22 surveillances and reviewed 10 audit files found: ⚫18 entities made or agreed to changes in 19 areas of concern in their financial reporting, including: ➡️A large proprietary company making a restatement to consolidate a subsidiary where control did exist ➡️An entity impairing its assets by more than US$790 million ⚫Audit and other findings were identified in nine surveillances across eight firms, with both auditors and companies notified to drive improved practices 🚨Enforcement actions included: ⚫Suspension of registered company auditor by 18 months ⚫Court enforceable undertaking by a registered company auditor to surrender registration ⚫Cancellation of registered company auditor registration and admonishment of review auditor ⚫Conditions imposed on a company auditor registration ⚫32 grandfathered companies required to lodge audited reports. 30 have since complied 📅 ASIC will continue to evolve its program in 2025–26 by: ⚫Increasing audit file reviews to 25 and enhancing the way audit files are selected for review ⚫Reviewing 2025 sustainability reports and sharing ASIC’s observations with the market to assist preparers ⚫Using full regulatory tools to enhance audit quality ‘Accurate, accessible and reliable financial information is essential for business and markets to work well,’ said ASIC Commissioner Kate O’Rourke. 🤔 Has this got you thinking more critically about the companies you’re involved with and their financial reporting? 🔗 Tap the link in the comments to read the full media release.