Regulatory news

ASIC has remade a legislative instrument that allows Australian Financial Services (AFS) licensees to place client money in cash common funds.

The new instrument, ASIC Corporations (Client money – Cash common funds) Instrument 2026/727, continues existing relief arrangements and will remain in force until 1 October 2031.

It replaces ASIC Corporations (Client money – Cash common funds) Instrument 2016/671, which is scheduled to expire on 1 October 2026.

ASIC has remade a legislative instrument which exempts low-volume financial markets from the requirement to hold an Australian market licence, raising the relevant transaction value threshold from $1.5 million to $2.5 million.

The increase in threshold reflects factors including inflation, with ASIC noting the threshold had not changed since 2016.

ASIC Corporations (Low Volume Financial Markets) Instrument 2026/756 (ASIC Instrument 2026/756) continues the relief provided under ASIC Corporations (Low Volume Financial Markets) Instrument 2016/888, with the new instrument scheduled to sunset on 1 October 2031.

ASIC consulted on remaking the instrument, CS 60 Proposed remake of low-volume financial markets instrument, in July and August 2026, and received three submissions.

All submissions supported in-principle the continuation of the relief, however, two submissions raised some concerns about the appropriate eligibility thresholds.

ASIC considers that the thresholds adopted in the instrument strike an appropriate balance between reducing compliance costs for operators of financial markets and managing regulatory risk.

The Australian Prudential Regulation Authority (APRA) has released a package of proposals to strengthen trustee investment governance and better protect members’ retirement savings.

The reforms are the next phase of APRA’s multi-year focus on lifting investment governance standards across the superannuation industry, particularly within the platform trustee segment.

The proposals build on substantial supervisory and enforcement activity and directly address shortcomings identified in APRA’s 2025 review of platform trustee practices.

They would strengthen requirements across eight key areas of risk and build on existing obligations for trustees.

AUSTRAC has begun issuing infringement notices after identifying businesses that failed to enrol with AUSTRAC as required under Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.

The enforcement action follows formal requests for information issued by AUSTRAC in August to businesses that had not enrolled but appeared to be providing designated services.

The infringement notices were issued to businesses in the real estate, accounting and jewellery sectors that AUSTRAC believes failed to enrol within 28 days of providing a designated service.

The notices were issued at $21,840 for corporate entities and $4,368 for individuals but can accrue on a daily basis.

On 10 December 2026, APP entities must include information in their privacy policy where they have arranged for a computer program to make or inform decisions that significantly affect individuals’ rights or interests.

This transparency obligation was introduced by the Privacy and Other Legislation Amendment Act 2024 within APP 1 of the Australian Privacy Principles (APPs) to include information about computer program usage in an APP entities’ privacy policy.

ASIC has issued a new legislative instrument to continue regulatory relief for managed discretionary account (MDA) providers and external MDA custodians. ASIC has also updated its related regulatory guidance.

ASIC Corporations (Managed Discretionary Account Services) Instrument 2026/720 (ASIC Instrument 2026/720) replaces ASIC Corporations (Managed Discretionary Account Services) Instrument 2016/968 (ASIC Instrument 2016/968).

ASIC Instrument 2026/720 does not substantively change the terms of the relief for MDAs. Minor adjustments have been made to reflect related regulatory developments and evolving industry practice, including:

• moving some financial services guide (FSG) content requirements to into the investment program;
• amending the timeframe for notifying ASIC of non-compliance from 10 days to 30 days, along with changing the information required from full details of the non-compliance to its material details; and
• phasing out quarterly reporting with electronic access to account information to better reflect industry practice, giving investors timely access to their investment details.

ASIC undertook a streamlined consultation process on the proposed remake of the relief in CS 47 Proposed remake of relief for managed discretionary account services in April 2026. The submissions broadly supported the continuation of the MDA relief.

ASIC has also updated its guidance in Regulatory Guide 179 Managed discretionary accounts (RG 179) to reflect the new instrument and adjustments made.

The Reporting and audit update covers regulatory developments in reporting and audit, including sustainability and financial reporting matters.