On the pulse
ASIC to allow instrument for business introduction and matching services relief to expire – see media release.
ASIC guidance on facilitating offers of CHESS Depository Interests reissued – see guide.
ASIC and RBA act on concerns with ASX – see joint ASIC and RBA letter.
New digital AFS licence portal – see InFocus.
APRA accepts Court Enforceable Undertaking from ANZ and increases capital add-on to $1 billion – see media release.
AUSTRAC CEO: Speech at Regulating the Game 2025 – see speech.
ACCC proposes to authorise Banking Code of Practice provisions on basic accounts and agricultural loan interest – see media release.
G+T Insight – Raising the bar: APRA’s enhanced governance proposals – Silvana Wood and Chris Whittaker (3 April 2025).
G+T Insight – ASIC report on super death benefits – Luke Barrett (1 April 2025).
ASIC
ASIC to allow instrument for business introduction and matching services relief to expire
ASIC allowed ASIC Corporations (Business Introduction Services) Instrument 2022/805 (Instrument 2022/805) to expire on 1 April 2025.
Instrument 2022/805 provided conditional relief from the fundraising, financial product disclosure, hawking and advertising requirements in the Corporations Act that would apply to a person making or calling attention to, offers through a business introduction service, of interests in managed investment schemes. The instrument does not provide relief from the Australian financial services licensing requirement.
Instrument 2022/805 required individuals to lodge a notice of reliance on the relief provided. Since 1 October 2022, there has been minimal reliance on Instrument 2022/805 to raise funds for registered managed investment schemes.
As a result of ASIC's decision to allow Instrument 2022/805 to expire, ASIC Regulatory Guide 129 Business introduction or matching services was withdrawn.
See ASIC media release.
ASIC guidance on facilitating offers of CHESS Depository Interests reissued
On 28 March 2025, ASIC reissued ASIC Regulatory Guide 253 Fundraising: Facilitating offers of CHESS Depository Interests (RG 253) to reflect the latest legislation and regulations.
RG 253 provides guidance for foreign companies listed on Australian financial markets, their advisers and others involved in offers of CHESS Depository Interests (CDIs) over securities of a foreign company. It explains:
How ASIC's relief in ASIC Corporations (Offers of CHESS Depository Interests) Instrument 2025/180 modifies the disclosure provisions in Chapter 6D of the Corporations Act and gives relief from the licensing provisions in Part 7.6 of the Corporations Act to facilitate offers of CDIs over underlying foreign securities.
When ASIC will consider granting individual relief to facilitate offers of CDIs.
How to provide effective disclosure for offers of CDIs.
ASIC and RBA act on concerns with ASX
ASIC and the RBA have taken further steps to address their increasing concern over the management of operational risk at ASX, following the CHESS batch settlement failure incident on 20 December 2024. The regulators have published a joint letter to ASX highlighting their concerns about:
The potential for such an incident to occur.
The management of the incident, including communications to stakeholders and the regulators.
The speed and nature of ASX's remediation actions following the incident.
See ASIC media release.
Additionally:
ASIC has directed ASX to appoint an expert approved by ASIC to undertake a technical review of CHESS. See Written notice of requirement to appoint an expert to provide ASIC with a report (28 March 2025).
The RBA reassessed the compliance of ASX Clear Pty Limited and ASX Settlement Pty Limited with the RBA's Financial Stability Standard for Operational Risk, downgrading its assessment of these entities' compliance with this standard from ‘partly observed’ to ‘not observed’.
ASX has responded to the actions from the regulators. See ASX Limited Market Announcement: ASX responds to actions from RBA and ASIC following CHESS settlement incident (31 March 2025).
New digital AFS licence portal
In May 2025, ASIC will launch the new digital AFS licence portal, allowing users to apply for, maintain and vary AFS licences through a streamlined, secure and user-friendly process. The new portal is designed to make the application process more intuitive and easier to navigate and will reduce processing times. While the existing portal will remain open until the launch, ASIC advises applicants and licensees to hold off on submitting applications or making changes to licences where feasible. ASIC will publish guidance closer to the launch.
ASIC key actions and proceedings
Full Federal Court finds in favour of ASIC in two appeals concerning Sunshine Loans. The Full Federal Court has found in favour of ASIC in relation to two appeals concerning small amount loan lender SunshineLoans Pty Ltd (Sunshine Loans). The first appeal was lodged by Sunshine Loans following the liability decision of Justice Derrington on 12 April 2024 that Sunshine Loans contravened the National Credit Code by entering into small amount credit contracts containing an unlawful fee and charging those fees to customers. The Full Court unanimously dismissed the numerous grounds of appeal relied on by Sunshine Loans.
The second appeal was lodged by ASIC. Sunshine Loans had applied for Justice Derrington (who delivered the liability decision) to recuse himself from further hearing the matter due to apprehended bias. His Honour determined to do so and ASIC successfully appealed that decision.
See ASIC media release.
Scam alert: Consumers warned about scammers impersonating ASIC requesting fund transfers. ASIC has warned consumers about scammers impersonating ASIC and requesting recipients to transfer funds from their bank accounts, which ASIC does not ask people to do. The scam claims to involve an ASIC investigation into the unlawful accessing of recipients’ bank accounts by bank employees and claims the security of recipients’ funds has been compromised. If in doubt, ASIC urges individuals to call ASIC to verify whether the communication they have received is legitimate.
See ASIC media release.
APRA
APRA accepts Court Enforceable Undertaking from ANZ and increases capital add-on to $1 billion
APRA has accepted a Court Enforceable Undertaking (CEU) from Australia and New Zealand Banking Group (ANZ) to address ongoing weaknesses in the bank’s non-financial risk management practices and risk culture. APRA also increased the capital add-on applied to ANZ from $750 million to $1 billion. This follows APRA’s increase of the $500 million operational risk capital add-on last year, applied in 2019 by $250 million.
APRA has long-standing concerns about ANZ’s non-financial risk management practices and risk culture. In August 2024, in response to employee conduct and non-financial risk management issues emerging in ANZ’s Global Markets business, APRA required ANZ to commission an independent review to determine the root causes of these issues. APRA acknowledges the progress of ANZ’s remediation program so far in implementing a group-wide non-financial risk management framework, system and operating model but assesses that the completion of this program alone will not effectively and sustainably address the broader non-financial risk weaknesses across ANZ.
Under the terms of the CEU, ANZ has agreed to (among other things):
Appoint an independent reviewer to complete a group-wide review of root causes and behavioural drivers of the persistent weaknesses in non-financial risk management practices and risk culture and conduct a gap analysis against current or planned remediation work.
Develop a comprehensive remediation plan to address the root causes.
Appoint an independent reviewer to provide assurance over the execution of the remediation plan.
Incorporate delivery accountabilities of the remediation plan into the accountability statements for Accountable Persons required under the Financial Accountability Regime and to reflect this accountability in the remuneration scorecards.
The $1 billion capital add-on will remain in place until ANZ has delivered the required remediation to APRA’s satisfaction.
A copy of the CEU is available here: Enforceable undertakings register.
See APRA media release.
AUSTRAC
AUSTRAC CEO: Speech at Regulating the Game 2025
In his speech at Regulating the Game 2025, AUSTRAC CEO Brendan Thomas highlighted findings from AUSTRAC’s recent enforcement action:
AUSTRAC has observed clear examples of boards and executives turning a blind eye to crime for the benefit of profit. A key failure is when boards take a ‘tick and flick’ approach to their anti-money laundering responsibilities. In these situations, AUSTRAC has observed cultural failures where the important questions go unasked, or the questions that are asked are insufficiently robust.
While reporting entities can outsource the development of their anti-money laundering and counter-terrorism financing programs or use a template, they must ensure it is tailored to their business and reflects their systems and controls. While entities can outsource the work, they cannot outsource their legal liability.
AUSTRAC continues to focus on the gambling sector, particularly because one of the biggest challenges is the growth and diversification, especially in online gambling.
See full speech.
Other regulators
ACCC proposes to authorise Banking Code of Practice provisions on basic accounts and agricultural loan interest
On 28 March 2025, the ACCC issued a draft determination proposing to authorise, with conditions, the Australian Banking Association’s member banks to make agreements relating to basic accounts and default interest charges on agricultural loans under the Banking Code of Practice. The proposed conditions of authorisation broadly require (among other things) member banks to not charge interest on informal overdrafts, or to refund any interest charged on informal overdrafts on basic, low or no fee accounts. The ACCC believes this will benefit farmers during droughts and other natural disasters and ensure low-income customers have access to affordable banking services.
See ACCC media release.
G+T articles
G+T Insight: Raising the bar: APRA’s enhanced governance proposals – discusses APRA's eight proposals to strengthen the governance framework for prudentially regulated institutions, focusing on improving governance practices in financial services to achieve better risk management, efficiency and innovation (with APRA seeking industry feedback on these proposals by June 2025) – Silvana Wood and Chris Whittaker (3 April 2025).
G+T Insight: ASIC report on super death benefits – discusses ASIC's report on the handling of death benefit claims by superannuation funds, highlighting key recommendations for improving service standards, reducing delays and mitigating enforcement risks, while also offering insights into industry performance benchmarks – Luke Barrett (1 April 2025).
Calendar dates
14 April 2025 – Deadline for submissions in relation to ASX consultation on amendments to clearing services rules.
14 April 2025 – Deadline for submissions in relation to ASX consultation on amendments to approved market operator contractual terms.
10 June 2025 – Credit licensing requirements for Buy Now Pay Later providers commence.
31 March 2026 – Amended AML/CTF obligations commence for existing reporting entities.
31 March 2026 – Tranche 2 entities may enrol as reporting entities with AUSTRAC.
1 July 2026 – Mandatory climate-related financial disclosures for Group 2 entities apply in respect of financial years starting on or after this date.
13 July 2026 – Key CDR obligations commence for non-bank lenders.
1 July 2027 – Mandatory climate-related financial disclosures for Group 3 entities apply in respect of financial years starting on or after this date.