Compliance Training for Banking and Finance Professionals

Netwealth has agreed to pay over $100 million in compensation to more than 1,000 Australians who invested their superannuation in the First Guardian Master Fund and has admitted it contravened the Corporations Act.

ASIC has commenced proceedings in the Federal Court against Netwealth Superannuation Services Pty Ltd (NSS) and Netwealth Investments Limited (NIL), as trustees of the Netwealth Superannuation Master Fund (NSMF).

NSS and NIL have admitted they failed to obtain and therefore did not assess sufficient information about the First Guardian Master Fund, or make sufficient independent enquiries, to understand or evaluate the investment risk in the First Guardian Diversified Class and Growth Class prior to or while offering them as investment options to NSMF members.

ASIC will seek orders that NSS and NIL failed to do all things necessary to ensure that the financial services covered by their financial services licences were provided efficiently, honestly and fairly.

ASIC has also accepted a court-enforceable undertaking from NSS and NIL to ensure members are compensated 100% of the amounts they invested in First Guardian less any amounts withdrawn. The compensation payments will be made by 30 January 2026.

ASIC has today released a series of updates to improve and simplify its regulatory guidance on complying with technological and operational resilience rules for market participants and market operators.

Resilient market participants and market operators are essential to the integrity of our securities and futures markets and to the efficient functioning of the economy.

The updates are the third stage of ASIC’s work to review and clarify guidance relating to Chapters 8A and 8B of the ASIC Market Integrity Rules (Securities Markets) 2017 and the ASIC Market Integrity Rules (Futures Markets) 2017 (Resilience Rules) set out in:

• Regulatory Guide 265 Guidance on ASIC market integrity rules for participants of securities markets (RG 265)
• Regulatory Guide 266 Guidance on ASIC market integrity rules for participants of futures markets (RG 266), and
• Regulatory Guide 172 Financial markets: Domestic and overseas operators (RG 172).

The updates align with ASIC’s commitment to regulatory simplification and include changes to reduce repetition and the length of guidance, as well as structural improvements. Further, the updates:

• incorporate guidance on arrangements for identifying critical business services previously shared in September 2024 in a letter to participants
• give certainty that critical business services arrangements may leverage existing resilience frameworks, including service provider’s business continuity plans and redundancy arrangements for outsourcing arrangements, where suitable
• confirm that, in some situations, full redundancy arrangements may not be required for all critical business services
• clarify thresholds for identifying and reporting major events to ASIC
• remove referenced to superseded APRA standards and guidance.

The updates also incorporate class waivers ASIC granted in August 2025 to provide relief from some requirements for outsourcing arrangements where supply of energy or communications services were identified as critical business services.

APRA and AUSTRAC have both announced actions to address weaknesses in Bendigo and Adelaide Bank’s (Bendigo Bank) money laundering risk management, non‑financial risk management practices and risk culture.

It follows the findings of an independent review undertaken by Deloitte into suspected money laundering at a Bendigo Bank branch, which the bank reported to AUSTRAC. This independent review found significant deficiencies with Bendigo Bank’s approach to the identification, mitigation and management of money laundering and terrorism financing risk.

APRA is concerned that the weaknesses identified by that investigation may be applicable across the bank’s operations more broadly. AUSTRAC shares APRA’s concerns.

As a result, APRA and AUSTRAC are today announcing the following actions, which are coordinated to ensure Bendigo Bank intensifies its efforts to strengthen its non-financial risk management systems and practices:

• APRA will require Bendigo Bank to undertake a root cause analysis to understand the extent of non-financial risk management issues at the bank, going beyond money laundering and terrorism financing;
• APRA will require Bendigo Bank to hold an operational risk capital add-on of $50 million; and
• AUSTRAC has commenced an enforcement investigation which will focus on whether Bendigo Bank has complied with its obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

The Australian Prudential Regulation Authority (APRA) has imposed additional licence conditions on Equity Trustees Superannuation Limited (ETSL) to address prudential concerns relating to its investment governance frameworks and practices, including oversight of platform investment options made available to members.

ETSL acts as trustee for 11 registrable superannuation entities (RSEs) and has approximately 649,000 member accounts and over $37 billion in funds under management.

The additional licence conditions follow APRA’s recent 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 ETSL’s onboarding processes and practices, including adequacy of investment selection criteria and due diligence, as well as investment option monitoring and reporting frameworks, and management of conflicts of interest.

Specifically, APRA’s review of ETSL identified concerns regarding:

• onboarding of new investment options to ensure they are assessed consistently, are in the best financial interests of members, and appropriately manage conflicts of interest;
• adequate knowledge, operational and investment due diligence undertaken in relation to new investment options;
• identifying key risks, and ensuring independent analysis of information received from investment managers and external research and rating agencies; and
• the adequacy of investment monitoring and reporting to identify and manage higher risk investment options.

Under the additional licence conditions, effective 18 December 2025, ETSL is required to:

• appoint an independent expert to undertake separate reviews of its platforms’ investment menus and investment governance framework;
• develop and implement an uplift plan to address identified gaps, and provide APRA with assurance or attestation that the remediation actions are complete and effective; and
• undertake a further review of its investment menu against the enhanced investment governance requirements to determine ongoing suitability of each investment option.

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

Share your views on the review of the Enhanced Regulatory Sandbox (ERS).

This consultation asks for views on:

• sources of and barriers to financial innovation in Australia
• how effective the ERS is
• how the ERS could better support financial innovation.

Your feedback will inform the review’s final report to government.

The ERS allows individuals or businesses to test innovative financial services or credit activities. They do not need an Australian financial services licence or Australian credit licence to use the ERS.

The ERS was introduced in 2020. The Australian Securities and Investments Commission (ASIC) administers it.

ASIC has today updated its regulatory guidance on managing conflicts of interest for Australian financial services businesses.

The changes align our guidance with developments in law and policy and draw on ASIC’s regulatory experience and insights from its surveillance of private markets.

‘Conflicts of interest aren’t just ethical dilemmas. They pose real threats that erode trust, tarnish reputations, and cause lasting harm to consumers, investors, and the entire financial ecosystem,’ ASIC Commissioner Kate O’Rourke said.

‘Effective conflict management is more than a regulatory checkbox—it’s the cornerstone of trust in financial services.

The updated Regulatory Guide 181 AFS Licensing: Managing Conflicts of Interest (RG 181) sets out clear, principles-based guidance for Australian financial services (AFS) licensees.

It aims to help licensees fulfil their licensing obligation to have robust arrangements and tailored conflict management strategies in place.

Key updates include:

• how the law applies to conflicts of interest, including the scope of the conflicts management obligation and links to other related obligations
• the types of conflicts AFS licensees should identify and manage
• the need for robust, tailored arrangements to manage conflicts
• practical steps for effective conflict management, and
• a non-exhaustive ‘catalogue’ of related legal obligations and information.

The revised RG 181 replaces guidance issued in August 2004 and is part of ASIC’s ongoing regulatory maintenance and simplification agenda—making it easier for businesses to access regulatory information and understand their obligations.

ASIC has banned Sydney-based mortgage broker Ms Thi Hoa Trieu from engaging in credit activities, controlling another person who engages in credit activities, and performing any function involved in the engaging in of credit activities for a period of ten years.

The Australian Prudential Regulation Authority (APRA) has published the Annual Superannuation Bulletin for the year ended 30 June 2025.

The annual superannuation bulletin provides an overview of the superannuation industry, and is published on an annual basis. These statistics contains information on funds and membership profile, key financial performance metrics, financial position, fees and expenses.

The publication is available on APRA’s website at: Annual superannuation bulletin

ASIC has released the first set of educational materials to help smaller companies and report preparers in understanding and applying the foundational concepts behind the new sustainability reporting requirements.

The sustainability reporting requirements are new for Australia and impose new obligations on directors and reporting entities but can also affect small and medium-sized companies that support reporting entities.

ASIC partnered with the Australian Accounting Standards Board (AASB) to develop eight learning modules on the sustainability reporting framework, and the PDF versions of the first three modules were released today.

ASIC has obtained commitments from ASX Group (ASX) on a package of reforms including:• Strengthening the independence and governance of ASX’s Clearing and Settlement Facilities Boards
• A strategic reset of ASX’s transformation program ‘Accelerate’, with clear milestones and accountability for delivery
• The imposition of an additional $150 million capital charge on ASX Limited to ensure ASX maintains robust financial resources until remediation is complete
• A commitment to stronger leadership

In addition, ASIC and the RBA will step up their review to uplift their joint supervisory model.

The package will strengthen confidence in ASX and Australia’s critical market infrastructure, provides certainty about the market operator’s reset, and responds to the Interim Report released today by the panel of the Inquiry into the ASX Group.

The Inquiry, announced in June 2025 and led by an expert panel, has identified shortcomings in ASX’s governance, capability, risk management and culture that required urgent attention and response. Due to the urgency of the reset required, the insights of the Report were shared with ASIC, and ASIC engaged with ASX.

The report finds that, while some progress has been made, more of the same is not an option. The scale of transformation required is significant and cannot be achieved through current tactical, incremental measures or business as usual.

Business lender Green County Pty Ltd and its loan introducer, Max Funding Pty Ltd, have been ordered to pay combined penalties of $515,000 by the Federal Court in relation to four loans provided by Green County to two consumers in breach of consumer credit laws.

Green County was fined $405,000 for engaging in unlicensed credit activity and breaching consumer protection provisions. Max Funding was fined $110,000 for engaging in unlicensed credit activity.

The Court earlier found Green County and Max Funding, neither of which have ever held an Australian credit licence allowing them to engage in consumer lending, failed to make reasonable inquiries or otherwise establish that the loans provided to the two consumers were business loans.

The Australian Prudential Regulation Authority (APRA) has imposed additional licence conditions on H.E.S.T Australia Ltd (HESTA) to address concerns regarding HESTA’s risk management and board governance during its recent transition of outsourced administration providers.

HESTA is one of Australia’s largest superannuation funds with 1.1 million members and approximately $100 billion in funds under management.

The conditions follow the transition of HESTA’s administrative services to a new provider, finalised in June 2025, which resulted in a severe, prolonged disruption to member services and caused direct harm to members.

APRA has identified deficiencies in HESTA’s board governance and management of risks which rendered HESTA inadequately prepared to effectively oversee and manage the transition.

Under the conditions, HESTA is required to conduct separate independent reviews of its risk management framework and board effectiveness. The reviews will be comprehensive in scope and will consider HESTA’s management of the transition.

ASIC has suspended the Australian financial services (AFS) licence of MW Planning Pty Ltd until 8 June 2026.

ASIC suspended MW Planning’s licence for not meeting its organisational competence and human resources obligations when it failed to appoint a new responsible manager following ASIC’s banning of its existing responsible manager, Robert John Tohill, on 25 August 2025.

ASIC also found that MW Planning had failed to:

• lodge required financial statements and an auditor opinion for the 2024 financial year, and
• report its failures to ASIC.

ASIC has specified that MW Planning must remain a member of the Australian Financial Complaints Authority and maintain professional indemnity insurance cover during the suspension period.

MW Planning has the right to apply to the Administrative Review Tribunal for a review of ASIC’s decision.

ASIC has issued infringement notices to 12 large proprietary companies for allegedly failing to lodge their FY24 audited financial reports on time.

The notices were issued as the result of a three-month surveillance following ASIC’s increased focus on non-lodgement of financial reports by large proprietary companies.

All 12 companies, which ASIC issued infringement notices of at least $187,800 each, totalling over $2.2 million, have paid in full.

The following companies have paid an infringement notice:

• Aje Hold Co Pty Ltd
• Bing Lee Electrics Pty Ltd
• Bob Jane Corporation Pty Ltd
• Frank Green Holdings Pty Ltd
• Harris Scarfe Pty Ltd
• Global Retail Brands Pty Ltd
• Grill’d Pty Ltd
• McCain Foods (Aust) Pty Ltd
• MJ Bale Group Pty Ltd*
• Outdoor Supacentre Pty Ltd
• Pearl Corporation of Australia Pty Ltd
• White Fox Boutique Pty Ltd

*MJ Bale Group paid an infringement notice of $198,000, as its alleged contravention occurred after the penalty unit value increased.

Payment of an infringement notice does not constitute an admission of guilt or liability.

AUSTRAC has released preview questions for reporting entities seeking to make an early start on preparing their 2025 compliance reports, due 31 March 2026

Your 2025 compliance report will cover your business activities from 1 January 2025 to 31 December 2025.

The compliance reporting obligation for 2025 only applies to current reporting entities who provided designated services during 2025. To learn more visit AUSTRAC compliance reports.

When your report is due

You must submit your 2025 compliance report to AUSTRAC between 1 January and 31 March 2026. There can be penalties for failing to submit your compliance report. Find out more about the consequences of not complying.

2025 compliance report questions

The questions in the 2025 compliance report are listed below to help you prepare. We’ve made changes to some questions this year to make it easier for you to complete your report.

You can find an explanation of the bolded terms under ‘key terms’. You can also find further information by clicking the linked text.

The Australian Prudential Regulation Authority (APRA) is undertaking a consultation on targeted amendments to CPS 230 Operational Risk Management (CPS 230). These proposed changes aim to better accommodate the needs of regulated entities that maintain material arrangements with non-traditional service providers (NTSPs).

Building on industry engagement throughout the year, and following October’s announcement, APRA is inviting submissions until 30 January 2026. APRA plans to finalise the targeted changes to CPS 230 ahead of the 1 July 2026 compliance date. This is intended to streamline processes for regulated entities, alleviate regulatory burden, and ensure a smooth transition.

The letter is available on APRA’s website at: Consultation on targeted amendments to CPS 230 Operational Risk Management

ASIC has commenced civil penalty proceedings in the Federal Court against Diversa Trustees Limited, alleging failures concerning the First Guardian Master Fund.

Around $300 million was invested into First Guardian from 2020 to 2024 through superannuation funds for which Diversa was trustee.

ASIC alleges Diversa failed to conduct adequate due diligence before allowing its members to invest and failed to conduct adequate ongoing monitoring. Further, ASIC alleges that Diversa failed to enforce a 50% holding limit it imposed for First Guardian and failed to have systems and processes in place to ensure that there was compliance with that holding limit.

ASIC Deputy Chair Sarah Court said, ‘This is another significant action relating to the First Guardian collapse which is an ongoing enforcement priority for 2026.’

‘Superannuation trustees must put their members first by acting with care and skill and by carrying out proper checks on investment options made available on their platforms,’ the Deputy Chair said.

ASIC has released a catalogue summarising key legal obligations and regulatory guidance to help private credit fund operators more easily identify and comply with existing regulatory obligations.

The catalogue provides a practical reference point and applies to operators of retail and wholesale private credit funds in Australia. It is also relevant to the broader funds management sector.

This work was flagged in its roadmap for capital markets released last month. This initiative complements issue of principles issued as a benchmark for firms to urgently assess its current practices, lifting them where necessary. This step will enhance trust and integrity in the private credit fund sector.

ASIC also intends to refresh regulatory guidance in 2026-2027 to consider private credit surveillance findings, reflect current risks and apply clearer guidance for wholesale funds.

Earlier this year, ASIC called on the private credit industry to lift its practices following expert observations of poorer practices, which were supported by ASIC’s surveillance findings. If ‘done well’, private credit complements the banking system and provides further opportunities for innovation, employment and growth.

Importantly, the catalogue does not include all applicable legal and regulatory obligations. It is not intended to be a substitute for legal advice.

Download

• Private credit fund catalogue (PDF 716KB)

ASIC has today announced new measures to further foster innovation and growth in Australia’s digital assets and payment sectors, granting class relief for intermediaries engaging in the secondary distribution of certain stablecoins and wrapped tokens.

This builds on previous stablecoin relief by exempting intermediaries from the requirement to hold separate Australian financial services (AFS), Australian market, or clearing and settlement facility licences when providing services relating to eligible stablecoins or wrapped tokens.

ASIC has also granted relief to allow providers to hold digital assets that are financial products in omnibus accounts, subject to appropriate record-keeping arrangements and reconciliation procedures.

This relief was foreshadowed when ASIC’s updated digital asset guidance (INFO 225) was published in October.

Download

• ASIC Corporations (Stablecoin and Wrapped Token Relief) Instrument 2025/867
• Explanatory Statement for ASIC Instrument (Stablecoin and Wrapped Token Relief)
• ASIC Corporations (Amendment) Instrument 2025/871
• Explanatory Statement for ASIC Corporations (Amendment) Instrument

ASIC has made an interim stop order preventing Stratos Trading Pty Limited (trading as FXCM) from issuing contracts for difference (CFDs) to retail clients because of deficiencies in its target market determination (TMD).

ASIC acted because it was concerned that the TMD inappropriately included investors with a medium risk appetite in the target market for FXCM’s CFDs.

ASIC considers that the risks associated with trading FXCM’s CFDs, including leverage, volatility, liquidity and pricing risk, make them unlikely to be suitable for investors who have a ‘medium risk appetite’, regardless of any other investment criteria noted in the TMD.

The interim stop order prohibits FXCM from issuing CFDs to retail clients and opening trading accounts for new retail clients to trade in those CFDs. It covers CFDs issued by FXCM that reference the following underling asset classes:

• currency pairs and forex baskets
• treasuries and commodities
• stock indices
• stocks and stock baskets, and
• cryptocurrencies.

ASIC made the interim order to prevent FXCM from issuing CFDs to retail clients, where distribution of the products is unlikely to be consistent with the financial objectives, situation or needs of consumers in its target market. The order does not prevent FXCM’s existing clients from varying or closing their CFD positions.

The order is valid for 21 days unless revoked earlier.