The session, held on Sept. 12, focused on the challenges of compliance, market integrity, and the need for proportional regulation as the industry navigates ongoing uncertainty.
ASIC Commissioner Simone Constant highlighted the importance of returning to fundamental principles in regulatory compliance.
Addressing an audience of industry stakeholders, Constant said that despite the complexity of today’s environment, compliance can be grounded in three core concepts:
“If you follow those principles, you’re well on your way to meeting the expectations of your stakeholders – including us,” she said.
ASIC’s 2025-26 corporate plan – recently released – sets out priorities such as improving consumer outcomes, enhancing market disclosure, supporting retirement outcomes, and strengthening digital and data resilience.
Constant noted that these priorities are designed to adapt to a rapidly changing environment.
Constant addressed the growth of Australia’s superannuation sector, which now manages over $4.3 trillion in assets.
However, she pointed out that increased scale has not always translated into improved member services.
Over the past year, ASIC has taken enforcement action against several superannuation funds for issues related to claims handling and member services.
The regulator has also released a report with 34 recommendations to improve the management of death benefit claims and has initiated civil proceedings against a trustee for alleged failures in due diligence.
ASIC is currently reviewing how trustees use complaints data to identify and address systemic issues.
“Complaints data is a valuable tool to identify and address systemic underperformance – we expect you to use it,” Constant said.
The regulator will also assess progress made by trustees in improving claims handling processes.
The review extends to how trustees assist members in retirement, with recent findings showing that a significant portion of trustees are unable to measure the effectiveness of their retirement support strategies.
ASIC plans to release further thematic reviews and use the findings to inform future regulatory actions.
Constant also discussed trends in Australia’s capital markets, including a decline in public listings and significant growth in private markets.
ASIC has sought industry feedback on whether current market settings support confident participation and has begun work on a report into the private credit sector, which is expected to highlight variations in fund management practices.
In addition, ASIC’s ongoing inquiry into the ASX’s market infrastructure is expected to deliver findings by March 2026. The inquiry was initiated following concerns about the resilience of Australia’s trading systems and aims to inform future steps to strengthen digital and data resilience.
APRA Chair Therese McCarthy Hockey outlined the agency’s focus on prudence, productivity, and proportionality.
She said that prudence remains central to APRA’s mandate, ensuring the stability of the financial system.
At the same time, APRA is working to support productivity by scaling regulatory requirements to the size and complexity of institutions.
Recent initiatives include reducing policy consultations, streamlining reporting, and modernising prudential standards.
Cybersecurity remains a priority, with APRA maintaining binding requirements for all regulated entities.
“Reducing our cyber expectations for smaller banks could contribute to lower costs that would help these banks compete financially with larger rivals. But in a worsening cybersecurity landscape fuelled by geopolitical volatility and artificial intelligence, to do so would create unacceptable prudential risks,” McCarthy Hockey said.
APRA is also simplifying the licensing process for smaller banks and introducing additional tiers to its proportionality framework, provided that appropriate resolution powers are in place.
Both ASIC and APRA leaders stressed the need to balance financial stability with competition and innovation.
McCarthy Hockey concluded that maintaining prudence is essential to protect the safety of bank deposits, insurance policies, and superannuation savings, but that the agencies are committed to supporting productivity and innovation where possible.
Further regulatory updates and reports are expected in the coming months, as both agencies continue to adapt their oversight to meet emerging risks and industry developments.
