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The Australian Prudential Regulation Authority (APRA) has finalised a new, more accessible pathway for banks to become accredited to use the internal ratings-based (IRB) approach to calculate credit risk-weighted assets.

The new pathway has the potential to boost competition while still supporting financial safety by incentivising banks to invest in advanced risk management capabilities. The IRB approach allows banks to better match capital to their actual risk, which can reduce their capital requirements and enable more competitive pricing.

The IRB method is one of two approaches banks can use to calculate risk-weighted assets, which determines the amount of regulatory capital they need to hold for credit risk. While the vast majority of banks use the standardised approach, APRA has approved six of the largest banks to use the IRB approach.¹

In a letter to industry published today, APRA confirmed its intention to proceed with plans to make IRB accreditation more attainable for medium-sized banks by making the process more flexible and transparent.

The changes deliver on APRA’s commitment to review and streamline the IRB accreditation process in response to Action 2 of the Council of Financial Regulators’ Review of Small and Medium-sized Banks.

The letter, which includes APRA’s response to submissions, is available at: A new pathway to internal ratings-based accreditation | APRA

Footnotes

¹ Banks accredited to use the IRB approach are the four major banks, Macquarie Bank and ING Bank Australia.

ASIC has updated its Internal Dispute Resolution (IDR) data dashboard to include complaints open, received or closed between 1 July and 31 December 2025, reflecting the most recent data reported by financial firms.

The update also introduces a new complainant demographics page, allowing users to explore complaint trends by age group, gender and location. Complainant demographic data is not shown at the firm-level.

In addition, a downloadable data file is now available, enabling users to extract and analyse selected complaint metrics for reporting and research. This allows users to benchmark performance against industry and identify trends across reporting periods, products, issues and outcomes.

These enhancements aim to improve the transparency, accessibility and usability of IDR data, supporting ASIC’s objective to strengthen accountability and drive improved complaint handling across the financial system.

Further information is available from ASIC’s IDR data reporting page.

Interactive dashboard

Internal Dispute Resolution data dashboard

The Australian Prudential Regulation Authority (APRA) has released a letter to Minimum Liquidity Holding authorised deposit-taking institutions on the liquidity treatment of deposits placed with settlement service providers (SSPs).

This letter responds to feedback and finalises the FAQ relating to the treatment of deposits placed with SSPs.

The letter to industry is available on the APRA website at: Finalisation of FAQ on treatment of deposits placed with settlement service providers

The Australian Financial Complaints Authority (AFCA) is opening public consultation on proposed amendments to the rules that govern its work, following changes to genetic testing protections in life insurance.

The consultation, running from 1 June to 26 June, follows a recent legislative change which introduced a ban on life insurers soliciting or using protected genetic information (namely adverse genetic testing results) when offering life insurance.

“These proposed amendments will ensure we can consider complaints about the use of genetic testing in life insurance in line with the new protections for consumers. This will enable AFCA’s Rules to keep pace with changes in the law,” said Michelle Kumarich, Executive General Manager Jurisdiction and Systemic Issues.

AFCA is proposing changes to Rule C.1.4b) and d) to enable it to consider complaints specifically about the use of adverse genetic testing results.

Subject to consultation and regulatory approval, these amendments are expected to take effect from 8 October 2026.

“Engaging with stakeholders through this consultation is essential to ensuring our Rules continue to meet the needs of consumers and financial firms. We encourage all stakeholders, particularly our life insurance members, to have their say during the consultation.”

The Consultation page on the AFCA website provides more information on how to submit a response.

The Australian Prudential Regulation Authority (APRA) has imposed additional licence conditions on HTFS Nominees Pty Limited (HTFS) to address prudential concerns relating to its investment governance and member outcome frameworks and practices, including oversight of platform investment options made available to super fund members.

HTFS acts as trustee for HUB24 Super Fund which has approximately 165,000 member accounts and over $55 billion in funds under management.

The imposition of additional licence conditions follows APRA’s thematic review of the investment governance, strategic planning and member outcomes practices of superannuation trustees that offer platforms (‘Platform Trustees’). Broadly, the review identified deficiencies in HTFS’s onboarding processes and practices for new investment options, investment option monitoring and reporting, management of conflicts of interest and approach to member outcomes.

Specifically, APRA’s review of HTFS identified concerns in relation to:

• lack of sufficiently rigorous, well-defined and consistently applied investment option selection criteria;
• quality of operational and investment due diligence undertaken for new investment options, including insufficient consideration and management of conflicts of interest and poor documentation;
• design and operational effectiveness of investment option monitoring and reporting frameworks in identifying and responding to performance and risk concerns;
• management of potential conflicts of interest, particularly where key decision-makers hold senior leadership positions within the parent or group, and governance arrangements lack an independent trustee voice; and
• assessment and oversight of member outcomes, including the implementation of controls to minimise potential harm to previously advised members.

Under the additional licence conditions, effective 29 May 2026, HTFS is required to:

• appoint an independent expert to undertake separate reviews of its platform investment menus and frameworks governing investment governance, conflicts management, strategic objectives and member outcomes;
• develop and implement an uplift plan to address identified gaps, and provide APRA with assurance that remediation actions are complete and operating effectively to address those gaps; and
• undertake a further review of its investment menu against the enhanced investment governance requirements to determine ongoing suitability of each investment option.

HTFS must also refrain from onboarding certain new high-risk investment options to its platform until an independent expert confirms the option has gone through an adequate onboarding process and an accountable person attests that all reasonable steps were taken to ensure the option is in members’ best financial interests.

APRA notes HUB24 Limited’s ASX announcement dated 21 April 2026 that it has exercised its option to acquire HTFS from EQT Holdings, subject to regulatory approvals. The licence conditions will apply notwithstanding any change of ownership to HUB24 Limited, which may implement new investment governance and oversight practices for HTFS.

APRA Chair John Lonsdale said: “This is the fifth Platform Trustee that APRA has taken enforcement action against and reflects APRA’s sustained focus on addressing prudential weaknesses identified through our review of Platform Trustees.

“Alongside enforcement action, APRA is closely supervising other in-scope Platform Trustees where improvement is necessary. APRA will continue to oversee the delivery of required actions and will hold trustees to account where they fail to make timely and sustainable improvements to investment governance and member outcomes.

“As part of this ongoing focus, we will also consider whether further enhancements to the relevant prudential standards and guidance are necessary.”

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.

APRA has today confirmed that:

• the mortgage serviceability buffer will remain at 3 percentage points;
• the countercyclical capital buffer will remain at 1 per cent of risk-weighted assets; and,
• high debt-to-income (DTI) lending limits remain unchanged, allowing banks to lend up to 20 per cent of new owner-occupied and investment loans at DTI greater than or equal to six times.

In deciding to keep its settings steady, APRA considered the high degree of uncertainty in the operating environment and the impact that the shift in the economic outlook is having on risks to financial stability.

In particular, APRA noted:

• households remain highly indebted. Housing credit growth for the March quarter was strong for investors and around average for owner-occupiers. However, there are signs of moderation in housing price and credit growth. Business credit growth remains above its historical average;
• pressure on household and business cashflows have increased due to higher inflation and interest rates but non-performing loans remain low. Strong buffers mean that most households and businesses are well placed to weather these pressures. The serviceability buffer helps ensure that recent new borrowers can continue to service their loans in the face of higher expenses and interest rates;
• higher risk forms of mortgage lending are contained and lending standards are sound. Based on preliminary March quarter data, high DTI lending remains well below APRA’s DTI limits and so the limits are not restricting overall bank lending. However, this type of riskier lending had been increasing over the past year and – given the uncertainty in the outlook – it is prudent for the limits to remain in place as guardrails for now; and
• the banking system remains well-capitalised and resilient and is well-positioned to absorb shocks should economic conditions deteriorate significantly.

APRA Chair John Lonsdale said that while existing settings remain appropriate for now, the risk landscape is volatile and could evolve rapidly.

“Since APRA’s last update, there has been a shift in the macroeconomic outlook. Interest rates have increased over recent months amid elevated inflation. The conflict in the Middle East is impacting economic and financial conditions in Australia, as higher oil prices add to cost pressures for households and businesses.

“Consumer sentiment and business confidence have weakened and downside risks to economic growth are heightened. Depending on global developments, these impacts could either ease or become more severe in the period ahead.

“At this stage, arrears and non-performing loans remain low and there is no evidence that the banking system is restricting credit supply to preserve capital positions in response to greater anticipated credit losses.

“APRA’s System Risk Outlook, released last week, highlighted that Australia’s financial system is resilient and well-positioned to support our economy in a potential downturn. APRA will remain alert for any early signs of risks materialising that could negatively impact financial stability and will adjust macroprudential settings if needed,” Mr Lonsdale said.

The Australian Prudential Regulation Authority (APRA) has confirmed plans to formally introduce a three-tiered approach to proportionality in its prudential framework for banking.

The measure is one of a number of reforms APRA moved to introduce as part of its response to the Council of Financial Regulators’ Review into Small and Medium-Sized Banks. The CFR review was undertaken in consultation with the Australian Competition and Consumer Commission (ACCC). It also aligns with APRA’s strategic commitment to get the balance right between its primary mandate for financial safety and stability and other considerations such as competition and efficiency.

Following a consultation that closed earlier this year, APRA today wrote to banks confirming it will proceed with the following proposals aimed at embedding additional proportionality and driving competition in the industry:

• Introducing a third tier of Most Significant Financial Institutions (MSFIs) for banks with total assets greater than $300 billion
• Raising the asset value threshold for banks to qualify as a Significant Financial Institution (SFI) from $20 billion to $30 billion; and
• Automatically providing a 12-month transition period when a regulated institution moves to a higher tier.

APRA also commits to providing non-SFIs with additional time to comply with new and revised prudential requirements when it is appropriate to do so.

APRA Executive Board Member, Therese McCarthy Hockey said: “Today’s changes reflect APRA’s ongoing commitment to building further proportionality into the banking framework and our supervision practices.

“This proportionality will only deepen over time as we look for more opportunities for greater differentiation between each of the banking tiers with each new piece of policy development.”

The changes take effect from 1 July 2026.

The letter formally responding to submissions to the consultation is available on the APRA website at: Formalising a three-tiered approach to proportionality in banking prudential framework

ASIC is seeking feedback on its proposal to remake legislative instruments that provide relief around managed investment schemes.

Under the proposal, the instruments, which are due to expire on 1 October 2026, will be extended for five years.

The legislative instruments to be remade are:

• ASIC Corporations (Serviced Apartment and Like Schemes) Instrument 2016/869
• ASIC Corporations (Property Rental Schemes) Instrument 2016/870
• ASIC Corporations (Charitable Investment Fundraising) Instrument 2016/813
• ASIC Corporations (School Enrolment Deposits) Instrument 2016/812
• ASIC Corporations (Horse Schemes) Instrument 2016/790, and
• ASIC Corporations (Attribution Managed Investment Trusts) Instrument 2016/489.

ASIC has assessed that these legislative instruments continue to form a necessary and useful part of the legislative framework.

Aside from minor changes to improve clarity and consistency, the content of the instruments will remain unchanged.

ASIC is also proposing to remove transitional provisions that are no longer necessary. This includes the relief in section 6 of ASIC Corporations (Attribution Managed Investment Trusts) Instrument 2016/489. This was intended to assist responsible entities transitioning to the attribution managed investment trust regime.

Providing feedback

ASIC invites feedback on their proposal and questions relating to ASIC Corporations (Horse Schemes) Instrument 2016/790. Submissions are due by 5pm AEST on 24 June 2026 and should be sent to rri.consultation@asic.gov.au.

Refer to CS 53 Proposed remake of six legislative instruments relating to managed investment schemes

ASIC is warning consumers who have joined ‘share trading’ or ‘stock tips’ messaging app groups that scammers are using these forums to push investments on fake crypto-asset trading platforms.

These fake platforms show profits and trades, but in fact, there is no real trading, and the site contains fake data. Any money deposited into these platforms goes straight to the scammers.

View the full media release.

The Full Federal Court has re-sentenced former investment manager Rodney Forrest to five years and three months’ imprisonment following his appeal for insider trading and procuring others to trade in more than $3 million of Platinum Asset Management shares.

View the full media release.

The Australian Prudential Regulation Authority (APRA) and Australian Securities and Investments Commission (ASIC) have published the public notes from the life insurance CEO roundtable held on 15 April 2026.

The roundtable was hosted by APRA Member Suzanne Smith together with ASIC Commissioner Alan Kirkland. It was attended by 19 life insurance CEOs and other executives, as well as representatives from Treasury and the Council of Australian Life Insurers.

The notes can be found on the APRA website at: APRA and ASIC host life insurance CEO roundtable – April 2026

New research released today by ASIC shows that Australia is well-placed to harness an ongoing surge of financial innovation.

The Innovation in Financial Technology and RegTech research, conducted by the Digital Finance Cooperative Research Centre (DFCRC) for ASIC, lays out how Fintech and Regtech innovations are evolving across the world.

View the full media release.

ASIC has commenced civil penalty proceedings in the Federal Court against Equity Trustees Superannuation Limited (Equity Trustees), alleging failures in care, skill and diligence concerning the decision to allow members to invest in the First Guardian Master Fund (First Guardian).

View the full media release.