ASIC has released its enforcement priorities for 2026, signalling a stronger regulatory posture across the financial services sector. The focus for the year ahead centres on consumer protection, market integrity, and lifting governance standards in both public and private markets. Key issues include misleading pricing practices affecting cost-of-living pressures, poor private credit practices, and failures in financial reporting. ASIC will also target misconduct affecting vulnerable consumers, insurance claims and complaints handling failures, and unlawful practices used to evade small business creditors. For AFSL and ACL holders, the message is clear: the regulator expects higher standards of transparency, accuracy, and accountability.
In 2026, ASIC’s new enforcement priorities are:
- Misleading pricing practices impacting cost of living for Australians
- Poor private credit practices
- Financial reporting misconduct including failure to lodge financial reports
- Claims and complaint handling failures by insurers
- Continuing our work to hold those responsible to account for the collapse of the Shield and First Guardian Master Funds
Continuing enforcement priorities are:
- Strengthening investigation and prosecution of insider trading conduct
- Misconduct exploiting consumers facing financial difficulty including predatory credit practices
- Unlawful practices seeking to evade small business creditors
- Holding super trustees to account for member services failures
- Auditor misconduct
These priorities sit against the backdrop of ASIC’s broader capital markets roadmap, outlined in Report REP 823 – Advancing Australia’s evolving capital markets. This report, together with REP 820 (private credit surveillance), highlights significant shortcomings in governance, reporting and transparency across the sector. ASIC notes that many licensees continue to struggle with consistent valuation practices, adequate liquidity frameworks, and clear fee and remuneration disclosure. In one review, ASIC found widespread reliance on infrequent internal valuations, opaque fee structures, and inconsistent use of credit terminology such as “senior” or “secured” without recognised standards. These insights directly inform ASIC’s enforcement stance for 2026, particularly as private credit markets expand and retail investor exposure increases.
For licensees, preparing for the year ahead requires more than incremental improvement. REP 823 sets out practical expectations that ASIC will enforce. Firms should ensure independent and quarterly loan‑level valuations; strengthen liquidity stress‑testing so redemption and asset‑tenor profiles are aligned; and improve data quality, reporting accuracy and timeliness.
Boards are expected to demonstrate active oversight of governance, valuation, liquidity and conflicts management, supported by contemporaneous minutes and transparent documentation. ASIC will also expect clear disclosure of all forms of remuneration, including borrower‑paid fees, and consistent use of product terminology to ensure investors are properly informed.
Proactively lifting compliance in these areas not only reduces enforcement risk but also positions firms to operate with greater stability and credibility. Well‑executed governance frameworks contribute to strengthened investor confidence and support healthy capital markets. For organisations that embed the recommendations from REP 823, the reward is a stronger, more resilient compliance posture and a reduced likelihood of regulatory intervention.
However, the consequences of failing to act are significant. ASIC has doubled the number of investigations and matters filed in court over the past year and has signalled its intent to continue escalating enforcement activity. Firms that fall short can expect stop orders, public enforcement actions, civil penalties, and reputational damage, particularly in areas that directly affect consumers. The regulator has made it clear that poor governance, inadequate reporting, and opaque market practices will not be tolerated.
Call to Action:
If your organisation hasn’t yet reviewed its 2026 readiness, now is the time. Contact AICS for a comprehensive compliance health check and tailored action plan to align your frameworks with ASIC’s updated expectations. We can help you identify vulnerabilities, strengthen your governance systems, and prepare your business for a more intensive regulatory environment.
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