The Australian Securities and Investments Commission (ASIC) has announced a strategic shift toward implementing reforms aimed at enhancing the functionality and appeal of both public and private capital markets.
Speaking at ASIC’s 2025 Symposium on Australia’s Public and Private Markets, chair Joe Longo (pictured) confirmed that the regulator is moving from consultation to concrete action.
Longo said the regulator is prioritising initiatives that will reduce friction in capital raising and improve investor confidence.
“We’re now looking at which ones we can bring to the front burner to fuel growth and activity in our markets. We’re moving from listening to action,” he said, pointing to recent changes to streamline the initial public offering (IPO) process as an example of early progress.
The changes are intended to reduce execution risk and facilitate new listings. ASIC reported receiving interest from market participants shortly after announcing the reforms.
While ASIC has clarified it is not seeking to regulate private markets hastily, Longo signalled increasing attention to these markets due to the scale of superannuation and insurance capital involved.
“The intent of this work has always been to sharpen our understanding of private markets. The very significant capital in this part of the system is made up of Australians’ superannuation and insurance monies, so quite frankly it is in the public interest that ASIC take a closer look and lead the debate,” he said.
Feedback to ASIC’s recent discussion paper highlighted broad support for stronger supervisory practices, particularly regarding valuations, fee transparency and the management of conflicts of interest.
However, Longo maintained that any regulatory steps must be grounded in a clear understanding of underlying issues.
Following Longo’s address, a panel discussion with leaders from the investment, academic, and regulatory sectors explored the forces reshaping Australia's capital markets.
Professor Carole Comerton-Forde from the University of Melbourne noted a significant decline in public market listings since 2022.
While regulation was cited by some as a constraint, Comerton-Forde pointed to an increase in the availability of private capital as the key factor influencing company decisions to stay private.
Guy Fowler, executive chair at Barrenjoey Capital Partners, also challenged the idea that regulatory complexity was the primary issue. He noted that the availability of private funding is creating a fundamental shift in capital markets. The challenge now is maintaining a level playing field.
ASIC highlighted the growing role of private credit, noting early-stage surveillance activities are already underway in that sector.
Longo said data quality and transparency remain concerns, particularly in relation to valuation practices and investor disclosures.
On a separate front, ASIC has flagged concerns about the insurance sector's handling of property claims following major weather events.
A follow-up to its 2023 report on home insurance claims practices found inconsistent oversight of third-party professionals and inadequate customer communication.
While improvements were noted in monitoring builders and repairers, oversight of other specialists – such as hydrologists and engineers – was found lacking. In many cases, frontline claims staff were relied upon to assess the quality of technical reports, despite not having the expertise to do so.
ASIC Commissioner Alan Kirkland said insurers must improve how they explain cash settlement options to policyholders.
Some insurers were reported to have introduced post-settlement follow-up calls to assist customers, but such practices were not widespread.
The regulator’s focus for the remainder of 2025 includes developing reforms to:
Longo said actionable proposals from market participants will remain a central element of ASIC’s forward agenda.
