Compliance training for payment providers

The New South Wales Supreme Court has ordered Macquarie Securities (Australia) Limited (MSAL) to pay a $35 million penalty for multiple systems-related failures that caused the misreporting of tens of millions of short sales over several years.

The Court also found that MSAL engaged in misleading conduct in relation to its misreporting.

MSAL failed to correctly report at least 73 million short sales between 11 December 2009 and 14 February 2024. It is estimated that between 298 million and 1.5 billion short sales were misreported during that period.

Short sale data plays a critical role in informing investors, regulators and governments about market sentiment and potential investment risks.

Accurate reporting underpins trust and confidence in Australia’s financial markets.

ASIC is urging young Australians to ‘sense check’ the information they see online, as new research shows nearly two thirds of Gen Zs are using social media and about one in five are using AI to make decisions about their financial future.

Moneysmart’s Gen Z study found that while Gen Z has a strong appetite for reputable and trustworthy financial content, many struggle to find it – and their search often leads them to sources designed for engagement rather than accuracy.

High levels of trust in often unreliable sources by some young Australians is contributing to riskier financial decisions such as investment in cryptocurrency based on limited or unproven information.

• 63% of Gen Z respondents (aged 18–28) said they use social media for financial information and guidance, while 30% use YouTube and 18% use AI platforms.
• More than half of Gen Z say they somewhat or completely trust financial information on social media (56%) and from ‘finfluencers’ (52%), while 64% say they trust AI platforms.
• Encouragingly, 60% also reported using formal or professional sources, and half (50%) turn to family and friends. But the survey highlights that social media remains a dominant influence, even when young people recognise its limitations.

Treasury has released for consultation the full package of draft Tranche 1 legislation to reform regulation of Payment Service Providers. The Bill amends and enhances the framework for PSPs to create a more comprehensive and effective regulatory and licensing system that reflects the nature of modern payments, capturing new types of financial products and services. Particular sectors of note include stored value facilities and stablecoins.

Digital assets and distributed ledger technology (DLT) are frequently characterised as disruptive innovations that challenge the foundations of financial regulation. This paper argues that such claims overstate novelty and understate continuity. Financial services have historically evolved through successive technological shifts, while retaining stable economic functions: capital allocation, payments, and risk management.

Drawing on financial history, Australian financial services law, and emerging international standards, this paper argues that digital assets can and should be regulated primarily by reference to economic substance rather than technological form. While certain features of digital assets justify tailored regulatory responses, the core regulatory principles of technology neutrality, functional regulation, and proportionality remain both viable and desirable in the digital economy.

Joint keynote address by ASIC Commissioner Simone Constant at the Conexus Super Chair Forum, Sorrento on 4 February 2026.

Key points

• By 2030, industry projects that Australia’s superannuation pool could be approaching $6 trillion dollars, comparable in size to where the banks are today.
• As super continues to grow, trustees will become stewards of more than Australia’s retirement future – but of our economic future too.
• Right across the superannuation sector there is a need to scale governance, capability, skills, systems, and operations to match this growing role in the system.

The Albanese Government has passed important superannuation reforms to help low income workers and make the super system fairer from top to bottom.

This means more super for workers on low incomes and more sustainable tax breaks for people with the biggest balances.

Today the Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026 passed the Senate without amendment.

We are helping workers earn more, keep more of what they earn and retire with more, while also strengthening Australia’s world‑class superannuation system.

These reforms will mean more super for around 1.3 million Australians, including around 750,000 women and around 550,000 young people under the age of 30.

The Liberals and Nationals opposed this legislation which will deliver a more secure retirement for more than a million Australians, including hundreds of thousands of young people and women.

The new Opposition Leader and his risky and extreme Shadow Treasurer have failed this major test.

They want bigger tax breaks for those with millions in superannuation and oppose a better retirement for low income workers.

This legislation will boost the low income superannuation tax offset (LISTO) and make a number of important changes to maintain tax concessions but better target them for large balances over $3 million.

The workers who stand to benefit from the LISTO change include over 100,000 sales assistants, over 50,000 administrative workers, over 50,000 aged care workers and disability carers, and over 50,000 child care workers.

Workers will receive a boost of up to $810 per year to their superannuation account depending on their income and contributions, with an average increase in the LISTO payment of $410 for affected workers.

Workers could receive a potential benefit at retirement of around $15,000 depending on an individual’s income over their career.

Our policy to better target super concessions for large balances will continue to affect less than 0.5 per cent of all Australians in 2026–27.

Labor built the superannuation system, and this legislation builds on this Government’s reforms, including lifting the Superannuation Guarantee to 12 per cent, paying super on paid parental leave and legislating payday super to start on 1 July this year.

ASIC is consulting on proposals to enhance corporate transparency by increasing investor visibility of who ultimately owns or controls entities listed on Australian financial markets.

The proposals will enable more accurate due diligence for prospective acquisitions, and improved market conditions for investment decisions. They will also increase visibility when someone may be seeking greater influence over a listed company by building positions including through derivative exposures over securities in the company.

The proposals are in response to reforms in Schedule 1 of the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Act 2025 (Strengthening Financial Systems Act). These reforms form part of the government’s commitment to improve corporate transparency, market efficiency and oversight.

Under Schedule 1, transparency of ownership and control of listed entities has been improved by broadening market disclosures to better capture interests arising through equity derivatives. Schedule 1 has also strengthened the existing substantial holding and tracing notice regimes that govern the disclosure of interests in listed entities.

Consultation Paper 387 Enhanced beneficial ownership disclosure–Proposed legislative instrument, form and guidance (CP 387) includes proposals on:

• a new legislative instrument (draft ASIC Corporations (Listed Enhancements Beneficial Ownership Disclosure) Instrument 2026/XX)
• a new ‘Substantial Holding Notice’, and
• amendments to regulatory guides:
  • RG 5 Relevant interests and substantial holding notices (RG 5)
  • RG 9 Takeover bids (RG 9)
  • RG 222 Substantial holding disclosure: Securities lending and prime broking (RG 222).

ASIC also proposes to make consequential updates to other regulatory guidance and existing legislative instruments in response to the Schedule 1 reforms. These updates are considered technical and will not be consulted on.

Chair Joe Longo delivered a keynote address at the Australian Institute of Company Directors Australian Governance Summit on 10 March 2026.

Here are the highlights of Joe’s address:

• Being a company director is not for the fainthearted. It comes with an ever-expanding thicket of risks, liabilities and obligations.
• Given the immense significance of well-run and successful businesses to the community, ASIC has a keen interest in ensuring that organisations have good directors at the table.
• Risk is not a dirty word. Risk helped to build the world around us. But risk is a two-sided coin. It has upsides and it has downsides. And today, being the director of a company means managing more risks for seemingly fewer rewards. The law doesn’t expect directors to be oracles or soothsayers. Rather, directors are expected to take considered risks in the face of considerable uncertainty.

Find out more in the full speech.

ASIC has withdrawn and updated certain regulatory guides as part of its push to make financial regulation simpler, clearer and easier to apply.

ASIC has withdrawn outdated guidance:

• Regulatory Guide 64 Failure to lodge documents (RG 64), and
• Regulatory Guide 40 Good transaction fee disclosure for bank, building society and credit union deposit and payments products (transaction accounts) (RG 40).

ASIC has also updated:

• Regulatory Guide 104 AFS licensing: Meeting the general obligations (RG 104), and
• Regulatory Guide 205 Credit licensing: General conduct obligations (RG 205).

ASIC has made minor and technical updates to RG 104 and RG 205 to maintain accuracy and clarity for industry.

These changes form part of ASIC’s broader program to review, update and simplify our regulatory guidance.

More information

Following on from the withdrawal of RG 64 and RG 40:

• Companies can find information about their obligations to lodge certain company documents on ASIC’s Company annual review webpage
• Consumers seeking information about transaction accounts, credit cards, and other banking products can visit Moneysmart.gov.au, and
• Retail payment and deposit product providers can also refer to ASIC’s regulatory resources on good disclosure practices including:
  • Regulatory Guide 168 Product Disclosure Statements: Disclosure and other obligations (RG 168), and
  • Regulatory Guide 221 Facilitating digital financial services disclosures (RG 221).

Background

RG 64 outlined ASIC’s approach to companies that failed to lodge certain documents and when ASIC would withdraw proceedings against a company secretary.

RG 40 was a reference guide for retail payment and deposit product providers and consumers on transaction fee disclosure. ASIC undertook targeted consultation with industry prior to withdrawing this guidance.

RG 104 and RG 205 set out what ASIC looks for when assessing how Australian financial services licensees and credit licensees meet their general obligations under the law.

RBA Deputy Governor Andrew Hauser’s appearance on The Conversation’s Politics with Michelle Grattan Podcast had market watchers anticipating the central bank may raise interest rates sooner than expected, sending the AUD higher against several major currencies. With inflation “well above target” even before the Middle East conflict, he said failing to act decisively could lead to “toxic” high inflation and be “bad for everyone”.

Opening statement by ASIC Chair Joe Longo at the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into the Oversight of ASIC, the Takeovers Panel and the Corporations Legislation, public hearing on 6 March 2026.

AUSTRAC has published guidance on its new compulsory examination powers, setting clear expectations for businesses and individuals about when and how the powers will be applied.

The new section 172A powers were introduced in 2025 with the passing of the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 (AML/CTF Amendment Act).

Section 172A notices require a person to attend an examination, answer questions and provide documents.

AUSTRAC CEO Brendan Thomas said the guidance reflects the agency’s approach to exercising its powers carefully and responsibly.

“The guidance is designed to ensure the community understands the scope of the power and the approach AUSTRAC will take to its use,” Mr Thomas said.

“This power and the suite of reforms that went with it, give AUSTRAC better tools to understand money laundering risks and how businesses are managing those risks which can ultimately disrupt serious and organised crime.

“The guidance makes it clear that compulsory examinations are not routine or punitive.

“They are used where necessary to understand how businesses handling money laundering risks, clarify information or engage with a reporting entity.”

Australia’s AML/CTF reforms are aimed at making it harder for criminals to launder money through the legitimate economy. The Australian Institute of Criminology estimates serious and organised crime generates around $38 billion each year, all of which must be laundered to be useful.

The Anti‑Money Laundering and Counter‑Terrorism Financing Amendment Act 2024 strengthens AUSTRAC’s ability to detect and disrupt this activity by expanding its information‑gathering powers.

The new guidance explains what information is included in a section 172A notice, what happens during an examination, the role of the examiner, how legal representatives may assist, and how information provided is handled.

In designing our approach we’ve considered witness welfare.

In particular, we’ve made it clear witnesses are entitled to legal representation, and they may speak about the notice with a health professional.

Importantly, receiving a section 172A notice does not necessarily mean AUSTRAC believes a person has broken the law.

“In many cases, an examination is simply a way to understand what has happened.”

“The focus is on gathering accurate information so we can make informed regulatory decisions, identify where risk may lay across the financial landscape and target criminal misuse of the system, not on making assumptions about wrongdoing.

“By being clear about how we use these powers, we support legitimate businesses and individuals while strengthening our ability to stop criminal money flowing through the economy.”

The guidance is available on the AUSTRAC website.

What the guidance is about

The guidance outlines:

• what is in a s172A notice
• what to expect in an examination
• the role of the examiner
• who you can disclose information to about the notice
• what your legal representative can do
• how we use information provided during the examination.

More information about s172A notices

To learn more, visit Section 172A examination powers.

The Federal Court has found that two former senior executives of The Star Entertainment Group Ltd (Star) breached their duties in relation to their handling of the risks associated with money laundering and criminal activity at one of Australia’s major casinos.

The Court found that Star’s former Chief Executive Officer and Managing Director, Matthias Bekier, and former Chief Legal & Risk Officer, Paula Martin, contravened the law by breaching their duties owed to Star under section 180 of the Corporations Act 2001.

The Court dismissed ASIC’s case against the seven former non-executive directors after finding they did not breach their duties.

Today’s judgment comes 12 months after Star’s former Chief Financial Officer, Harry Theodore, and its former Chief Casino Officer, Gregory Hawkins, admitted breaches of their duties as officers of Star before the trial.

At that time, the Court imposed financial penalties against Mr Theodore and Mr Hawkins and disqualified them from managing a public company for 18 months and nine months respectively (25-018MR).

In relation to today’s judgment, Mr Bekier was found to have breached his duties arising from his:

• failure to properly deal with a KPMG report that identified deficiencies in Star’s processes for managing AML/CTF risk
• failure to properly manage the risks arising from the gambling junket Suncity’s operations in Salon 95, an exclusive gaming room provided to Suncity by Star; even after becoming aware of media allegations concerning Crown and Suncity, and
• failure to properly manage and escalate to the board issues concerning the impermissible use of China Union Pay (CUP) cards by Star’s casino customers.

Mr Bekier was found not to have breached his duties arising from his approval of expanding Star’s credit exposure to two of its gambling junket customers, including Suncity, and the management of Star’s business association with Mr Sixin Qin.

Ms Martin was found to have breached her duties in relation to each of the three pleaded contraventions arising from her:

• role in failing to properly inform and advise the Board about the risks arising from Star’s dealings with Suncity, and
• involvement in misleading Star’s banker National Australia Bank in relation to the use of CUP cards by Star customers, and in failing to inform the board of these issues.

The matter will be listed for a further hearing and ASIC will ask the Court to impose a financial penalty on Mr Bekier and Ms Martin and to disqualify them from managing corporations for a period of time.

The Life Insurance Code Compliance Committee (Life CCC) has sanctioned a life insurer for collecting customers’ medical information without obtaining valid medical authority.

Between March 2020 and March 2024, the insurer requested and collected medical information during underwriting without first obtaining consent using the prescribed authority wording.

In total, 2,171 applications were affected, impacting more than 2,000 customers. Chair of the Life CCC, Jan McClelland AM, emphasised the seriousness of the breach.

Tens of thousands of Budget Direct customers lost online insurance discounts they were promised and were overcharged for premiums as part of misconduct that went on for years, ASIC alleges.

In Federal Court proceedings launched against Auto & General Services Pty Ltd, the insurer that arranges Budget Direct insurance products, ASIC alleges that:

• between March 2020 and July 2024, Auto & General advertised significant discounts of up to 30% for Budget Direct customers who purchased car, home or motorbike insurance policies online with the advertisements being viewed by millions of consumers; and
• approximately 39,000 customers lost their online discount after making amendments to their policy during the first year. The average premium discount loss amounted to nearly $100 and across the cohort was worth $3.3 million.

It is ASIC’s case that the advertising was misleading because customers were not told the discounts would be removed following any changes such as a change in address, either at the time they signed up, or at the time that they made the change.

ASIC alleges Auto & General first became aware of the issue as early as 2016 but failed to fix it or inform affected customers for years. ASIC alleges that senior staff were aware of the problem but did not immediately fix it.

ASIC has cancelled the Australian financial services licence (AFS licence) of Private Wealth Pty Ltd (Private Wealth) following two payments by the Compensation Scheme of Last Resort (CSLR).

On 30 June 2025, the Australian Financial Complaints Authority (AFCA) made a determination against Private Wealth, which Private Wealth failed to pay. Subsequently, on 3 December 2025, the CSLR made a payment of $60,317.40 for the AFCA determination and notified ASIC.

On 31 July 2025, AFCA made a determination against Private Wealth, which Private Wealth failed to pay. Subsequently, on 3 December 2025, the CSLR made a payment of $54,963.84 for the AFCA determination and notified ASIC.

As a result, on 12 February 2026, ASIC cancelled Private Wealth’s Australian financial services licence.

ASIC must cancel the AFS licence of a licensee where that licensee fails to pay an AFCA determination and the CSLR subsequently pays compensation.

The cancellation is not subject to discretion or merits review. In making the cancellation order, ASIC has specified that Private Wealth is to maintain its membership with AFCA for a further 12 months, to 5 February 2027. This means that complaints about Private Wealth can be lodged with AFCA until 5 February 2027.

ASIC has secured the highest six-monthly civil penalty total in its history and hundreds of millions of dollars in payments which will flow to Australians in connection with ASIC’s work.

New figures reveal ASIC secured a record $349.8 million in court-ordered civil penalties in the second half of 2025 following successful cases against some of Australia’s largest companies and super trustees including ANZ, NAB, Cbus, RAMS and Australian Unity Funds Management.

ASIC’s work will also see a total of $583 million returned to millions of Australians through refunds from excessive bank fees after its Better and Beyond review and in payments in connection with investigations into the Shield Master Fund and First Guardian Master Fund.

‘ASIC has secured record penalties in response to serious misconduct, and is protecting Australians and safeguarding trust and confidence in Australia’s financial system,’ ASIC Chair Joe Longo said.

‘Today, ASIC is one of the most active law enforcement agencies in the country. We are taking more cases to court, achieving record penalties, and protecting consumers.’

ASIC’s criminal enforcement work has also helped hold those who broke Australia’s financial services laws to account.

While the matter is subject to appeal, the Supreme Court of Western Australia sentenced West Australian fraudster Chris Marco to a 14-year term of imprisonment.

New ASIC data released today shows an increase in reports of misconduct (ROMs), driven largely by corporate governance concerns, including failures to provide company records, insolvency matters and shareholder issues.

Between 1 July and 31 December 2025, ASIC received 9,686 ROMs, raising 13,036 issues. Corporate governance matters accounted for 40% of these issues, with financial services and retail investor issues totalling 44%.

ASIC Deputy Chair Sarah Court said, ‘The figures point to an increase in concerns being raised about corporate governance issues.