The Australian Securities and Investments Commission (ASIC) has opened a consultation on proposed updates to three regulatory guides as it implements the federal government’s financial market infrastructure (FMI) reforms. The consultation covers:
Released on April 20, 2026, the consultation seeks submissions on whether the revised guidance for financial market operators, derivative trade repositories, and benchmark administrators is appropriate in light of recent law changes. The proposals follow commencement of the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024 in September 2024. For insurers, reinsurers, and intermediaries that rely on Australian trading venues, clearing and settlement arrangements, benchmark-linked products, or derivatives for investment and risk management, the consultation indicates how ASIC proposes to apply the new FMI framework across key market infrastructure.
According to ASIC, the draft changes are designed to align existing regulatory guides with the FMI reforms and to update how the regulator explains its expectations of licence holders. The reforms, which implement recommendations of the Council of Financial Regulators (CFR), expand ASIC’s and the Reserve Bank of Australia’s (RBA) licensing, supervisory, and enforcement powers; adjust certain responsibilities between the minister, ASIC, and the RBA; and introduce a crisis management and resolution regime for FMIs.
In its consultation material, ASIC states that the proposed updates to RG 172, RG 249, and RG 268 are intended to:
In a statement issued to Insurance Business, a spokesperson for ASIC said: “The financial market infrastructure (FMI) reforms strengthen the resilience and integrity of Australia’s capital markets, which insurers rely on to raise capital, invest premiums, and manage risk. ASIC’s enhanced licensing, supervisory, and enforcement powers are designed to support well functioning trading, clearing, and settlement systems, bolstering investor confidence and market stability. ASIC’s expanded oversight of foreign financial market infrastructures with a significant Australian nexus ensures that systemically important offshore trading facilities and clearing and settlement providers used by Australian insurers operate to consistent regulatory standards. This promotes operational resilience and transparency, allowing insurers to continue accessing global markets with confidence while protecting Australian investors and policyholders. ASIC’s proposed updates to RG 172, RG 249, and RG 268 are intended to provide clear, practical, and market neutral guidance that reflects the strengthened FMI framework. The updates clarify regulatory expectations while supporting insurers’ continued access to the market infrastructure they rely on for effective investment and risk management.”
ASIC has not issued a stand-alone consultation paper. Instead, it has released draft versions of each guide and a summary of proposed amendments, and invited stakeholders to comment on the clarity and operation of the revised text and to suggest specific changes. The regulator notes that FMIs “are the key entities that enable, facilitate, and support trading in Australia’s capital markets,” including market operators, benchmark administrators, clearing and settlement facilities, and derivative trade repositories. Insurance balance sheets with exposures to listed equities, fixed income instruments, derivatives, or benchmark-linked liabilities may therefore be indirectly affected by changes in how these entities are supervised and licensed.
ASIC has set a five-week consultation period. Submissions on the proposed updates are due by 5pm AEST on May 25, 2026, and are to be lodged via the email address submissions-fmi.reforms@asic.gov.au. Respondents may choose to remain anonymous or use an alias. ASIC notes that anonymous submissions limit its ability to follow up to clarify or test feedback. The regulator also states that submissions will not be treated as confidential unless this is specifically requested and refers stakeholders to its privacy policy for information on how personal information is handled.
The consultation will form part of the process that shapes regulatory settings around markets and benchmarks used for investment, capital, and liquidity management, reinsurance structures, and valuation practices. Internal legal, compliance, and risk teams are likely to assess whether the proposed drafting, including the references to expanded supervisory powers, has implications for access, reporting, or operational arrangements tied to FMIs.
