The Australian financial services landscape faces a period of potential regulatory recalibration following Labor's decisive victory in the federal election held over the weekend. With Treasurer Jim Chalmers identifying global economic uncertainty as a key priority, industry stakeholders are recalibrating expectations around key reforms, particularly the Delivering Better Financial Outcomes (DBFO) package. The election outcome has seemingly paused the "super wars" that have dominated policy discussions. However, questions remain about implementation timelines for previously announced reforms and the direction of retirement income policy under the returned government.
ASIC has launched a new user-friendly portal for Australian Financial Services Licensees, streamlining AFSL applications and administrative processes as part of its broader efficiency initiatives. The regulator continues its enforcement actions, cancelling the licence of Brite Advisors Pty Ltd and banning an unlicensed Western Australian adviser for serious compliance failures. In a significant move affecting institutional players, ASIC has imposed additional licence conditions on Macquarie Bank following repeated derivatives compliance failures, requiring enhanced governance and risk management frameworks to address systemic issues identified during recent surveillance activities.
Treasurer Jim Chalmers has signalled that addressing global economic uncertainty remains the government's primary focus as Australia navigates volatile international markets and inflationary pressures. Meanwhile, industry analysis has revealed that APRA levy costs to superannuation funds have increased by 147% over the past decade, raising concerns about regulatory cost burdens ultimately being passed on to members. This comes as market infrastructure provider ASX acknowledges that its CHESS replacement project team is stretched, potentially impacting the delivery timeframe for this critical financial market infrastructure upgrade.
Labor's election victory has temporarily calmed the contentious "super wars" that have characterised Australian retirement policy debates, though industry participants note that superannuation preservation is increasingly becoming a "populist pariah" in political discourse. The path forward for the Delivering Better Financial Outcomes (DBFO) reforms remains uncertain despite the Labor landslide, with The Advisers Association (TAA) asserting that Tranche 2 of the package "falls well short" of addressing industry concerns. Multiple industry bodies have called for the returned government to prioritise growing adviser numbers and push through stalled advice reforms.
The Financial Advice Association Australia (FAAA) has taken a strong stance on several regulatory fronts, urging a reversal of ASIC's approach on intrafund advice and pushing back on intrafund advice expansion proposals within the DBFO framework. The association has also joined with the Stockbrokers and Investment Advisers Association (SIAA) to call for further review of advice documentation requirements. Meanwhile, the life insurance sector faces ongoing challenges with industry voices describing it as a "burning platform" requiring urgent government attention. In a significant consumer outcome, the Australian Financial Complaints Authority (AFCA) has ordered Zurich to pay a previously rejected TPD claim.
Based on recent developments, financial services stakeholders should consider the following action items:
Key developments to monitor in the coming weeks include: