The Australian Securities and Investments Commission (ASIC) has released its regulatory focus areas for 2025, highlighting critical issues that impact financial markets, consumer protection, and economic stability.
These priorities reflect ASIC’s ongoing surveillance of the financial system and its mandate to maintain trust, integrity, and resilience across sectors.
ASIC is increasing its focus on the interplay between public and private markets, as private markets continue to grow and raise transparency concerns.
While superannuation funds expose many Australians to private investments, these markets often operate under less stringent disclosure requirements compared to public markets. To address these concerns, ASIC will examine governance, valuation, and liquidity management practices among retail private credit funds as part of its surveillance activities.
With approximately $750 billion in superannuation funds expected to transition from accumulation to retirement phases over the next decade, trustees will face rising demand for tailored services.
ASIC’s data showed that complaints about superannuation fund services doubled between 2021 and 2023, underscoring the need for better support during retirement transitions. The regulator plans to publish findings from its review of member services and take enforcement action where non-compliance is identified.
The sophistication of scams targeting Australian consumers, investors, and small businesses continues to grow. Common fraud schemes include cryptocurrency scams and impersonation frauds featuring fake celebrity endorsements.
Since mid-2023, ASIC has deactivated more than 7,300 phishing and scam websites. In collaboration with the National Anti-Scam Centre, the commission is enhancing data-sharing capabilities to better combat these threats while adding around 20 new entities weekly to its Investor Alert List.
The rising demand for financial advice linked to retirement planning has raised red flags about unsuitable or high-risk recommendations. ASIC has observed concerning practices, such as directing superannuation funds into risky investments, aggressive sales tactics, and leveraging social media algorithms to target consumers.
Current surveillance efforts are focused on self-managed superannuation funds (SMSFs) and advice quality, with enforcement actions planned for cases of misconduct.
As the financial sector becomes increasingly reliant on digital infrastructure, the risks associated with cyberattacks and data breaches continue to grow. ASIC has emphasised the need for boards to strengthen risk management frameworks and ensure robust cybersecurity measures are in place. The regulator will review cyber resilience across financial services and share findings to promote improved protections.
ASIC has flagged persistent deficiencies in how general insurers manage claims following natural disasters. Delays in assessments, inadequate communication, and subpar settlement arrangements have raised concerns, particularly as climate change contributes to an increase in disaster events. The regulator plans to monitor claims handling processes closely in the year ahead.
The replacement of the Australian Securities Exchange’s (ASX) Clearing House Electronic Subregister System (CHESS) remains a key focus.
ASIC, in partnership with the Reserve Bank of Australia, is overseeing the project to ensure the transition proceeds smoothly and safeguards market stability.
With the rollout of new climate disclosure requirements, ASIC has stressed the importance of accurate and consistent reporting on climate-related risks and opportunities.
Misleading claims about sustainability and ethical investments will remain a focus, with ASIC aiming to prevent greenwashing through ongoing guidance and enforcement.
The reliability of financial audits remains central to maintaining confidence in markets. ASIC will focus on auditor independence and conflict-of-interest concerns as part of its efforts to uphold audit standards. The agency plans to scrutinise compliance within the audit sector and address systemic issues.
ASIC has raised concerns about the ability of banks and lenders to adequately support customers facing financial difficulties, particularly during the current period of high living costs. The regulator will monitor improvements among institutions that have committed to enhancing their financial hardship assistance programs.
