ASIC cracks down on missed financial report filings
Large companies face closer scrutiny after widespread lodgement failures
ASIC cracks down on missed financial report filings
INSURANCE NEWS
By Roxanne Libatique
20 Aug 2025

The Australian Securities and Investments Commission (ASIC) has intensified its focus on large proprietary companies that were previously exempt from financial report lodgement, following findings of widespread non-compliance.

According to ASIC, more than half of these former “grandfathered” companies failed to submit financial reports for the 2023 or 2024 financial years.

Of 1,166 companies reviewed, 755 had not lodged reports. Separate inquiries into 58 companies suspected of being large proprietary entities revealed 32 had missed lodgement.

ASIC Commissioner Kate O’Rourke said that financial reports give shareholders, creditors, and the public critical information to make informed decisions.

“Companies should be lodging their financial reports in a timely manner. Regular and consistent reporting instils confidence and integrity in our financial system,” she said.

While some companies submitted their reports after ASIC intervention, others remain non-compliant. O’Rourke also noted auditors had generally not reported suspected breaches of lodgement obligations.

Grandfathered companies now required to lodge reports

Changes to the law under the Treasury Laws Amendment (2022 Measures No. 1) Act 2022 removed lodgement exemptions for grandfathered companies as of Aug. 10, 2022.

Previously, these large proprietary companies had annual audits but were not required to make their financial reports public.

A proprietary company is classified as large if it meets at least two of the following conditions:

  • Consolidated revenue of $50 million or more
  • Total assets of $25 million or more
  • At least 100 employees

Smaller proprietary companies remain exempt but must provide evidence confirming their status.

ASIC has said it will continue monitoring lodgement practices and will take regulatory action where necessary.

The regulator has also launched a broader surveillance program on large proprietary companies, expected to conclude in early 2026, using its full enforcement and compliance powers.

Additional regulatory activity in August 2025

In the same month, ASIC extended a five-year regulatory relief for insurers and brokers covering incidental retail insurance, allowing wholesale policies with small retail components to avoid certain obligations under the Corporations Act.

ASIC also urged life insurers to review their direct-to-consumer policy practices.

Commissioner Alan Kirkland highlighted issues with product design, sales, cancellations, and complaints handling.

He said firms need to incorporate customer feedback and complaints data to improve their service.

“Life companies need to place the customer at the very heart of their product and service proposition, including by using customer feedback and complaints data to respond to pain points,” Kirkland said.

Related Stories
Free newsletter

We'll keep you up-to-date with the latest breaking news, cutting edge opinion, and expert analysis affecting both your business and the industry as whole.

Free newsletter

Our daily newsletter is FREE and keeps you up - to - date with the world of Insurance. Please complete the form below and click on subscribe for daily newsletters from IB AU.