This week saw an unprecedented regulatory crackdown across Australia's financial services sector. ASIC Chair Joe Longo declared he was "reading the riot act" to superannuation trustees while launching a formal inquiry into the ASX's governance failures. The aggressive enforcement stance, spanning from 'finfluencer' warnings to multi-year sanctions for Code breaches, signals a new era of accountability as the industry simultaneously grapples with Division 296 tax confusion and pushes forward with innovation in private markets and retirement solutions.
Financial Advice Highlights
The advice profession faced a wave of enforcement actions. ASIC banned multiple advisers, including a 10-year prohibition for cryptocurrency fraud and cancelling Financial Services Group Australia's AFSL over links to failed schemes. In a significant shift, the FAAA publicly backed AFCA's power to 'name and shame' non-compliant firms, reflecting growing support for accountability measures. However, ASIC provided pragmatic relief on fee consent forms ahead of DBFO reforms. At the same time, research revealed that dissatisfaction among inheritance beneficiaries presents a significant opportunity for advisers willing to engage multiple generations.
[Read the complete Financial Advice Weekly Update →]
Investment Landscape
Private market valuations came under intense scrutiny, with ASIC Commissioner Simone Constant warning that "we should all be asking tough questions" about unlisted asset values and the Future Fund CEO stating they would "pick public every day of the week" for transparency. ASIC launched a formal inquiry into the ASX following governance failures, while simultaneously targeting 18 'finfluencers' in a global crackdown on unlicensed advice. Despite regulatory headwinds, innovation continued with UniSuper backing a new AI-driven long-short strategy and platforms expanding their managed account offerings.
[Read the complete Investment Weekly Update →]
Superannuation Developments
ASIC Chair Joe Longo delivered a forceful intervention, warning trustees about "board-level blind spots" and announcing intensified scrutiny of fund expenditure to ensure direct member benefits. The Division 296 tax debate intensified, with the Treasurer defending it as a "test case for real reform". At the same time, industry bodies urged reconsideration due to the complexity around contribution add-backs, creating confusion. Despite regulatory pressure, funds pushed ahead with global investments, with HESTA backing European property expansion and UniSuper seeding AI-driven strategies.
[Read the complete Superannuation Weekly Update →]
Life Insurance Trends
The Life Code Compliance Committee demonstrated real enforcement power, sanctioning an unnamed insurer with three years of supervision for a decade-long premium overcharging breach, with the financial adviser's persistence credited for uncovering the issue. APRA proposed scrapping the "one-size-fits-all" approach to annuity capital settings, potentially unlocking innovation in retirement income products. Insurers continued enhancing value propositions, with MetLife highlighting the success of its menopause support service and TAL securing new superannuation mandates while partnering to expand affordable insurance access.
[Read the complete Life Insurance Weekly Update →]
Regulatory Focus
APRA proposed significant governance reforms across financial institutions while advancing changes to annuity capital frameworks to encourage retirement product innovation. The regulator imposed a $1 billion capital penalty on ANZ (referenced in earlier context), demonstrating a willingness to use strong enforcement tools. Meanwhile, Treasury opened consultation on 2025-26 APRA levies totalling $243 million, and the FAAA outlined election priorities including CSLR improvements and an ATO portal for advisers.
[Read the complete Regulatory Weekly Update →]
Looking Ahead
The ASX inquiry submissions and hearings will dominate the coming months with potential implications for all market participants. At the same time, the January 2026 adviser qualification deadline looms as a potential trigger for a significant industry exodus. APRA's annuity consultation and the Division 296 draft legislation expected in Parliament will shape retirement planning strategies, as financial institutions must urgently review governance frameworks and valuation practices to meet escalating regulatory expectations across all sectors.
