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The Full Court of the Federal Court has dismissed ASIC’s appeal in the Finder Wallet case relating to a crypto-asset related product Finder Earn.

The ruling upheld the original decision of the Federal Court, which found that the Finder Earn product was not a debenture and therefore Finder Wallet (now Wallet Ventures Pty Ltd) had not breached the Corporations Act, as alleged by ASIC.

This decision highlights the challenges in the current regulatory framework concerning debentures and the application of the existing financial services regime to products involving crypto assets.

ASIC is carefully considering the decision and its implications.

The Australian Prudential Regulation Authority (APRA) has published a speech delivered this morning by Chair John Lonsdale to the 2025 ABA Banking Summit in Sydney.

In “Striking the right balance between regulation and risk”, Mr Lonsdale spoke about how APRA sought to balance the need to maintain a secure and stable financial system with other considerations such as competition, innovation and efficiency.

Keynote address by ASIC Chair Joe Longo at the ABA Banking Conference in Sydney on 23 July 2025.

Key points

• ASIC won’t hold back customer-centric AI innovation, but cutting-edge technology can’t leave your customers bleeding.
• We all have a duty to harness the technological advances we are seeing – and use them for community and customer benefit.
• We are not rushing to more AI regulation but acknowledge more regulation may be needed in future. In the meantime, regulators will need to be bolder and more imaginative with how we use our existing powers.

The Australian Prudential Regulation Authority (APRA) will keep its macroprudential policy settings steady following its latest review of domestic and international financial conditions and risks.

APRA’s macroprudential policy tools are aimed at mitigating financial stability risks at a system-wide level to promote a safe and stable financial system that enables households and businesses to confidently borrow, save and invest for the future.

In deciding to keep its settings on hold, APRA took account of high levels of household debt and above-average total credit growth, which is expected to rise further as interest rates decline. Lower inflation and interest rates have eased financial pressures on borrowers, labour market conditions remain tight, bank lending standards remain sound and non-performing loans remain low. However, the risk of economic shocks from the uncertain geopolitical environment is elevated.

AUSTRAC has cancelled an Enforceable Undertaking (EU) from PayPal Australia Pty Ltd (PayPal) after PayPal completed a two year remediation plan to improve its systems and controls relating to international funds transfer instructions (IFTIs).

In 2020 AUSTRAC ordered an external audit of PayPal’s AML/CTF program, after it identified significant concerns that PayPal’s systems, controls and governance were not appropriate for the size and complexity of PayPal’s business and the money laundering risks to which it was exposed.

AUSTRAC has closed Gold Corporation’s Enforceable Undertaking (EU), which was put in place after a series of AUSTRAC and third party reviews identified non-compliance with the AML/CTF Act.

The EU was accepted in November 2023 after AUSTRAC found failings in Gold Corporation’s (trading as Perth Mint) systems, controls and reporting, including the requirement to have an ongoing customer due diligence program, report suspicious matters, and maintain of enrolment details within required timeframes.

In May 2025, AUSTRAC received the final progress report from the external auditor which specified how the company had successfully completed its remediation in compliance with the EU.

ASIC will launch a review into the debt management and credit repair sector, as part of its continued focus on protecting consumers, particularly those experiencing financial hardship.

ASIC Commissioner Alan Kirkland said: ‘We are concerned some licensees may be failing to engage in credit activities efficiently, honestly and fairly, leaving financially vulnerable consumers worse-off as a result.

ASIC’s surveillance will review how the sector, comprised of around 100 licensees, complies with the law. It will seek to understand the varying debt management and credit repair business models in operation.”

ASIC is suing financial advice business Fortnum Private Wealth Limited alleging it failed to properly manage and mitigate cybersecurity risks.

In proceedings filed in the NSW Supreme Court, ASIC alleges Fortnum did not meet its obligations as an Australian financial services licensee because it failed to have adequate policies, frameworks, systems and controls in place to deal with cybersecurity risks.

As a result, ASIC claims Fortnum exposed the company, its authorised representatives (ARs) and clients of its ARs to an unacceptable level of risk of a cyber-attack or a cybersecurity incident.

While Fortnum introduced a specific cybersecurity policy from April 2021, ASIC contends the policy was not an adequate response to manage cybersecurity risk.

AUSTRAC has released its regulatory priorities for this financial year, outlining new plans to reduce the harms from money laundering, terrorism financing and other serious crime.

AUSTRAC CEO Brendan Thomas said financial crime damages Australia’s financial system and this year’s focus is on preparing to regulate ‘tranche 2’ industries and targeting gaps in high-risk sectors such as cash and digital currencies.

‘Tranche 2’ includes real estate agents, lawyers, conveyancers, accountants, trust and company service providers, dealers in precious metals and stones, and other designated service providers.

“This year marks a regulatory shift – from regulation that primarily checks for compliance to one focussed on substantive risks and harms,” Mr Thomas said.

“AUSTRAC will look at risk and behaviour at an industry and sector level rather than focussing solely on individual entities.”

Banks, insurers and superannuation funds will need to meet higher standards of operational risk management as new requirements from the Australian Prudential Regulation Authority (APRA) come into force.

ASIC alleges thousands of home loan customers suffering financial distress were impacted by the failure of Resimac Limited to ensure it provided appropriate care when responding to hardship applications as required by its credit licence.

Resimac manages non-bank loans provided by Perpetual Trustee Company Limited.

ASIC alleges that Resimac imposed a ‘one size fits all’ approach to hardship applications, and that it typically requested extensive standard information from vulnerable customers without considering whether all of it was relevant and reasonably necessary in light of their individual circumstances and any information they had already provided to Resimac.

Following the first round of consultation that began in late 2024, we are seeking further feedback on new Anti-Money Laundering and Counter-Terrorism Financing Rules (AML/CTF Rules).

Information security, operational resilience, and non-financial risks more broadly also got mentions in APRA Chair John Lonsdale’s opening remarks to the Business Council of Australia boardroom lunch.

With the advent of CPS 230 Operational Risk Management looming, it’s no surprise that operational resilience was a running theme, firstly when APRA Executive Director of Cross-industry Risk Chris Gower spoke at the AFIA Risk Summit 2025.

ASIC Commissioner Alan Kirkland addressed the AFIA Risk Summit, indicating that following surveillances of small amount credit contract providers and car finance sold to vulnerable customers, the role of mortgage brokers in facilitating access to credit was now in its sights.

Key points

• The future direction of our public and private markets affects almost every Australian – and will undoubtedly help shape our economy.
• We have a window of opportunity to design the public markets we want to see – and grease the wheels a bit to get public listings moving.
• At the same time, we are at a turning point that could alter the trajectory of private markets to instil further market integrity and confidence.

ASIC is suing Snaffle (operated by Walker Stores Pty Ltd) alleging it inflated the cost of household goods and electronics such as washing machines, fridges and mobile phones, and applied unlawful interest charges under its credit contracts.

ASIC alleges Snaffle’s pricing structure circumvented a cap on the costs that can be imposed under credit contracts (the Annual Cost Rate), which is designed to protect consumers, allegedly resulting in customers paying hundreds of dollars more in interest payments than they should have.

ASIC has published its financial reporting and audit focus areas for the 2025-26 financial year and highlighted the progress of its ongoing financial reporting and audit surveillance programs.

‘These surveillance programs aim to enhance the integrity and quality of financial reporting and auditing in Australia. We expect all entities to provide reports and audits that are accurate, complete and informative,’ said ASIC Commissioner Kate O’Rourke.

ASIC has issued two infringement notices totalling $37,560 to insurance company Zurich Australia Limited for allegedly making false or misleading statements to two policyholders regarding their entitlement to benefit payments.

In May 2024, Zurich declined two trauma insurance claims advising the policyholders that their particular medical conditions were excluded, and no benefit was payable.

ASIC alleges that these statements were false or misleading as the policy terms applicable to the trauma cover held by the policyholders did not exclude their medical conditions and they were entitled to a benefit payment.

Zurich discovered these errors following a quality assurance review and subsequently remediated the policyholders paying them their benefit entitlements with interest. Zurich also reported the matter to ASIC.

ASIC has cancelled the Australian financial services (AFS) licence of SME Crowdfunder Pty Ltd (SME).

The licence was cancelled because SME had ceased providing financial services and had not provided any financial services since September 2023.

The cancellation took effect on 2 May 2025.

SME may apply to the Administrative Review Tribunal for a review of ASIC’s decision.