Australia's financial services sector entered a new era of regulatory intensity this week as APRA's landmark operational risk standard CPS 230 officially came into force on July 1. This pivotal compliance milestone coincided with ASIC launching major investigations into private credit and the role of platforms in product failures, while strong end-of-financial-year investment returns masked deeper structural challenges in retirement income solutions and advice accessibility.
Financial Advice Highlights
The advice profession faces mounting pressure, with Kaplan estimating 1,700 advisers remain at risk of missing the January 2026 education deadline, prompting the launch of accelerated qualification programs. Private equity firm TA Associates made a landmark investment in Viridian Financial Group, signalling confidence in scaled advice models despite overall adviser numbers dropping sharply at EOFY. John Trowbridge reignited debate over Life Insurance Framework commission structures, proposing modifications to improve advice viability for middle-market clients.
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Investment Landscape
Platform efficiency emerged as the critical differentiator for advisers, with research warning that peripheral platforms face exit threats if they fail to invest in technology and integration capabilities. ASIC announced investigations into both the booming private credit sector's retail offerings and the role of platforms and research houses in recent product failures. Digital assets gained mainstream traction with VanEck's Bitcoin ETF reaching $290 million in assets, while major corporate moves included CC Capital Partners progressing toward a potential takeover of Insignia Financial.
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Superannuation Developments
Super funds celebrated strong FY25 returns with many posting double-digit gains, yet APRA's first-ever publication of retirement product performance data exposed the industry's limited progress on decumulation solutions three years after the Retirement Income Covenant. The implementation of CPS 230 brings heightened operational risk requirements, with cybersecurity now ranked as funds' top concern. On the policy front, successful lobbying by Treasurer Jim Chalmers helped avert a US tax measure that threatened billions in losses for Australian funds investing overseas.
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Life Insurance Trends
Life insurers confronted the dual challenge of implementing CPS 230's stringent operational requirements while addressing fundamental questions about advice viability, with John Trowbridge proposing reforms to commission structures to better serve middle-market clients. Leadership changes swept the sector with appointments at ClearView, Bombora Advice, and Acenda Group signalling strategic repositioning. Product innovation continued with ClearView announcing trauma and underwriting updates, while the industry manages legacy issues, including a CommInsure class action heading to mediation.
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Regulatory Focus
APRA's CPS 230 operational risk standard officially commenced, imposing comprehensive requirements for managing operational risks, business continuity, and third-party providers, with the regulator warning against any "cutting corners." ASIC escalated enforcement activities, cancelling Ballast Financial Management's license and launching probes into private credit retail offerings and platform due diligence processes. The regulator also provided transitional relief for certain reportable situations while extending deadlines for managed investment scheme updates.
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Looking Ahead
The immediate focus across all sectors will be demonstrating robust CPS 230 compliance to APRA, particularly around cyber resilience and third-party risk management. The outcomes of ASIC's investigations into private credit and platform practices could reshape product distribution standards. At the same time, the January 2026 adviser education deadline looms as a potential catalyst for further consolidation in the advice sector.
