The Australian Securities and Investments Commission (ASIC) has reported a marked rise in enforcement actions and investigations in its latest annual report, attributing the increase to ongoing enhancements in its operational infrastructure.
Investments in digital tools, cyber security, and data analysis have supported these efforts, according to ASIC chair Joe Longo.
Longo stated that these improvements have resulted in a 50% growth in the number of investigations, nearly a 20% increase in new civil enforcement cases, and the completion of 829 targeted surveillances.
ASIC’s report highlighted a broad range of regulatory initiatives intended to address complexity and reinforce the integrity of Australia’s financial markets.
Among the key activities were the release of a discussion paper examining the dynamics of public and private markets, the formation of the Regulatory Simplification Consultative Group, and the commencement of an inquiry into the ASX’s governance and risk management practices following repeated operational failures.
The regulator also identified and responded to failures in the superannuation sector, particularly regarding death benefit payments, resulting in enforcement actions against Cbus and AustralianSuper.
Other significant actions included a review of artificial intelligence use by financial and credit licensees, the removal of more than 6,900 fraudulent investment and phishing websites, and the recovery of $104.1 million in civil penalties and $16.8 million in criminal fines through court proceedings.
Longo said that ASIC is actively adjusting its strategies to confront new developments in the financial landscape.
“We are taking impactful enforcement action and a leading approach to solving regulatory problems to protect consumers and support the integrity of our markets,” he said.
In May 2025, ASIC published its annual plan for financial reporting and audit surveillance for the 2025-26 period.
The roadmap maintains oversight of high-risk areas in financial reporting, expands the scope of audit file reviews, and introduces new requirements for sustainability disclosures. These measures are designed to promote transparency and reliability in Australia’s financial system.
ASIC has indicated that financial statement preparers should apply increased scrutiny in areas where professional judgement is critical, such as revenue recognition, asset valuation, and liability estimation. These areas remain under close observation due to their potential impact on the financial standing of entities.
“These surveillance programs aim to enhance the integrity and quality of financial reporting and auditing in Australia," said ASIC commissioner Kate O’Rourke. "We expect all entities to provide reports and audits that are accurate, complete, and informative.”
The regulator also noted that ongoing market volatility and changing economic conditions have added complexity to financial decision-making and reporting.
