Markets
ASIC invites feedback on pre-hedging guidance
On 15 June 2026, ASIC commenced consultation on a proposed new regulatory guide for pre-hedging, aligning Australia's regulatory approach with international standards developed by the International Organization of Securities Commissions (IOSCO).
Consultation Paper 389 Proposed regulatory guide on pre-hedging (CP 389) provides draft guidance outlining ASIC's expectations for market participants engaging in pre-hedging and how existing legal obligations apply to the practice.
The proposed regulatory guide aligns with IOSCO's Final Report on Pre-Hedging and is intended to supersede the "open letter" previously released in February 2024.
The proposed regulatory guide aims to:
- clarify how existing obligations apply to pre‑hedging activities;
- help market participants assess when pre-hedging is appropriate; and
- highlight practices that help manage conduct risk and maintain market integrity.
The guidance is relevant to market participants, including Australian financial services licensees and other entities that undertake pre-hedging in anticipation of client transactions.
ASIC is seeking industry feedback on the proposals in CP 389, including whether the final regulatory guide should include examples of observed better practices to support implementation.
Feedback is due on 27 July 2026.
See: Media Release, CP 389, IOSCO Final Report on Pre-Hedging, ASIC guidance for market intermediaries on pre-hedging
Insurance
Treasury releases draft regulations ahead of the ban on use of adverse genetic test results in life insurance
On 5 June 2026, Treasury released draft regulations ahead of the upcoming ban on the use of adverse genetic testing results in life insurance, which will commence on 8 October 2026.
The ban stops insurers from requesting or using adverse genetic test results when underwriting life insurance policies. There is an exception to this where both:
- the policyholder (or their authorised agent or medical practitioner) volunteers the test; and
- using it improves the policyholder's or beneficiary's outcomes.
The draft regulations:
- clarify how the ban applies to certain genetic predispositions; and
- make the strict liability offence and civil penalty provisions subject to the infringement notice scheme under the Insurance Contracts Act 1984.
Treasury is seeking feedback on the draft regulations from interested stakeholders, which is due by 26 June 2026.
See: Media Release, Consultation Page, Exposure Draft, Explanatory Statement
Banking
APRA releases update to draft CPS 510 on governing requirements
On 16 June 2026, APRA published a response to industry feedback and an updated draft of CPS 510 on minimum governance requirements for further consultation.
The new CPS 510 is designed to reflect contemporary best practice, establish clear benchmarks and address existing areas of poor practice by:
- strengthening requirements for board governance, conflicts management and the fitness and propriety of directors and executives;
- removing duplicate fit and proper reporting now that the Financial Accountability Regime reporting is in place;
- enabling boards to delegate APRA’s board requirements in other prudential standards, and by aligning governance requirements with other codes and regimes where appropriate; and
- combining five existing prudential standards into one and setting consistent governance minimums for all APRA-regulated entities.
APRA is requesting feedback on the draft CPS 510, the proposed removal of routine fit and proper reporting, and related changes in CPS 001 Defined terms. Consultation is open until 28 August 2026.
See: Media Release, Consultation Page, Consultation Paper, Draft CPS 510, Draft CPS 001 Defined Terms
Licensing
ASIC extends class no-action position to second party opinion providers
On 16 June 2026, ASIC announced it has extended the current class no-action position for a contravention of the requirement to hold an AFSL in relation to providing a second party opinion (SPO) that involves general financial product advice to wholesale clients only.
ASIC’s no-action position is conditional and requires that:
- the SPO is made available in connection with an offer for issue or sale of financial products made available only to wholesale clients;
- there are adequate conflict management arrangements in place; and
- the SPO is accompanied by certain disclosures.
This extension will provide time for consideration on how the phased implementation of mandatory climate reporting requirements under the Corporations Act and upcoming regulatory changes in other jurisdictions will impact these services.
This no-action position applies until the end of 15 June 2028 unless amended or revoked.
See: Media Release, Letter, Regulatory Guide 108
Reporting
ASIC proposes to withdraw financial reporting relief for uncontactable members
On 5 June 2026, ASIC announced it is seeking feedback on its proposal to withdraw financial reporting relief for uncontactable members before it expires on 1 October 2026.
ASIC assessed that ASIC Corporations (Uncontactable Members) Instrument 2016/187 (Instrument 2016/178) is no longer being used, as sections 110JA and 110F(4A) of the Corporations Act 2001 provide similar relief.
Instrument 2016/187 provides relief to companies, registered schemes, disclosing entities and notified foreign passport funds from obligations to provide annual reports to a member if that member was uncontactable.
If ASIC proceeds with this proposal, entities not covered by these requirements may need to apply to ASIC for individual relief aligned with Regulatory Guide 43 Financial reporting and audit relief.
Submissions are due on 17 July 2026.
See: Media Release, Consultation Page, Instrument 2016/178, Regulatory Guide 43
ASIC updates mandatory credit reporting relief
On 10 June 2026, ASIC announced amendments to the mandatory credit reporting relief for credit providers.
ASIC Credit (Amendment) Instrument 2026/64 amends the relief provided under ASIC Credit (Mandatory Credit Reporting) Instrument 2021/541 by introducing an additional category of accounts that is exempted from reporting.
ASIC has assessed that the relief is operating effectively and continues to form a necessary part of the legislative framework. The relief will now sunset on 1 October 2031.
ASIC conducted targeted consultation with credit providers and industry bodies in November and December 2025, revealing stakeholder support for extending the relief for five years and expanding the scope to include additional account categories.
See: Media Release, ASIC Credit (Amendment) Instrument 2026/64
Other
ASIC confirms approach to ban on advertising super funds during employee onboarding
On 9 June 2026, ASIC outlined its transitional approach to the enforcement of a new ban on any advertising of superannuation funds occurring during the employee onboarding process, set to commence on 1 July 2026.
The ban aims to protect employees from being influenced to make uninformed decisions, including opening inappropriate products or unintentionally creating duplicate superannuation accounts.
The ban does not apply to:
- general advertising to the public;
- MySuper products that meet the legislated criteria;
- employer default funds; and
- an employee's stapled fund.
ASIC will be taking a balanced approach to the ban on advertising for a period of 12 months from 1 July 2026, allowing entities time to build the capabilities to meet these new requirements. Any enforcement action is likely to be directed at misconduct that is serious or reckless in nature and not where entities are making honest attempts to comply with the new requirements.
See: Media Release, Treasury Laws Amendment (Supporting Choice in Superannuation and Other Measures) Act 2026
ASIC updates guidance on advertising financial products and services
On 9 June 2026, ASIC announced an update to its guidance on advertising financial products and services to help industry comply with legal obligations and avoid misleading consumers.
Regulatory Guide 234 Advertising financial products and services (including credit) (RG 234) provides guidance to help relevant entities comply with their legal obligations not to make false or misleading representations or engage in misleading or deceptive conduct. Entities include promoters of financial products, financial services, credit products and credit services, and publishers of advertising.
The updates to RG 234 aim to simplify and explain ASIC's regulatory approach to advertising financial products and services, including:
- new guidance reflecting enforcement and regulatory action, relevant to advertising conduct;
- consolidated guidance from Regulatory Guide 53 so that all advertising guidance is in one place (meaning Regulatory Guide 53 has now been withdrawn); and
- simplified and streamlined existing content.
See: Media Release, Regulatory Guide 234, Consultation Page
ASIC and APRA announce Financial Accountability Regime changes to reduce administrative burden
On 16 June 2026, ASIC and APRA announced that they will streamline aspects of the Financial Accountability Regime (FAR).
The proposed changes include:
- removing key functions requirements from the FAR regulator rules;
- raising the materiality threshold for notifying ASIC and APRA of changes in accountability; and
- no longer requiring information on accountable persons' direct reports in accountability maps.
ASIC will streamline responsible manager AFS licensing requirements for FAR entities by reducing requirements to submit evidence of competence from October 2026.
ASIC and APRA will consult on the changes and aim to implement them by the end of 2026.
See: Media Release
Other authors: Julia Ryan, Graduate
