Financial Markets
ASIC seeks feedback on remaking low-volume financial market relief
On 23 July 2026, ASIC announced that it is inviting industry feedback on its proposal to remake a legislative instrument which exempts low-volume financial markets from the requirement to hold an Australian market licence.
The current relief, under the ASIC Corporations (Low Volume Financial Markets) Instrument 2016/888 is scheduled to sunset on 1 October 2026.
ASIC proposes to remake the legislative instrument to increase the transaction value threshold for low-volume financial markets from $1.5 million to $2.5 million. All other proposed amendments are minor and do not materially change the operation of the instrument.
Feedback on the proposal should be provided by 20 August 2026.
See: Media Release, Instrument 2016/888, Proposed draft instrument
ASIC simplifies compliance with reforms to beneficial ownership reporting
On 30 July 2026, ASIC announced that it has simplified compliance with beneficial ownership reforms designed to improve transparency about who ultimately owns, controls or has significant economic exposure to listed entities in Australia.
Following Consultation Paper 387 Enhanced beneficial ownership disclosure: Proposed legislative instrument, form and guidance, ASIC has:
- introduced a new consolidated Substantial Holding Notice (SHN) form for notifying persons about a substantial holding in a listed entity;
- replaced Forms 603, 604 and 605 with Transitional Forms 603, 604, and 605;
- simplified the calculation for determining deemed economic interest and offsetting short positions in listed securities; and
- implemented an index-based format of registers for relevant interests.
ASIC has also updated Regulatory Guide 5 Relevant interests and deemed economic interest (RG 5), Regulatory Guide 9 Takeover Bids (RG 9) and Regulatory Guide 222 Substantial holding disclosure and tracing requirements (RG 222) in respect of the above changes.
There will be a transition period from 4 December 2026 to 4 June 2027, during which the SHN form or the Transitional Forms may be used. The SHN form will need to be used by all entities listed on Australian financial markets from 4 June 2027.
See: Media Release, CP 387, RG 5, RG 9, RG 222, Substantial Holding Notice form
ASIC proposes to amend regulatory guidance to support capital raising activity
On 23 July 2026, ASIC announced it is seeking feedback on its proposal to amend Regulatory Guide 264 Sell-Side Research (RG 264) under a new principles-based approach designed to facilitate greater investment in the local market.
The proposal follows feedback from ASIC's discussion paper on public and private markets, which indicated industry demand for clearer, less prescriptive guidance to encourage research supporting capital raising activity.
The proposed changes would replace RG 264 with a shorter, principles-based guide.
Feedback on the proposal should be provided by 21 August 2026.
See: Media Release, RG 264, Proposed changes to RG 264, ASIC discussion paper
Banking
APRA is finalising exemptions to the restriction of certain words and expressions under the Banking Act
On 23 July 2026, APRA released a legislative instrument containing exemptions to section 66 of the Banking Act, which restricts the use of certain words and expressions. APRA has expanded the existing exemption to include a broader set of foreign entities than initially proposed.
Following consultation in June 2025 and an APRA response in September of the same year, APRA has broadened the exemption to cover:
- foreign banks;
- foreign bank holding companies;
- foreign bank treasury companies;
- multilateral development banks; and
- foreign subsidiaries of Australian banking groups.
Exempt entities (or their parents or groups) must be prudentially regulated in their home country (except multilateral development banks). Foreign subsidiaries of Australian banking groups must have an APRA-regulated Australian parent.
APRA did not expand the exemption to cover other activities beyond the issuance of wholesale debt securities.
Other foreign entities seeking to use restricted terms without an ADI licence must continue to apply to APRA for consent on a case-by-case basis.
See: Media Release
Funds Management
ASIC announces changes to net tangible assets requirements for responsible entities
On 30 July 2026, ASIC announced its approach to increasing the net tangible assets requirement for responsible entities of registered managed investment schemes. The decision follows 18 submissions received in response to Consultation Paper 388 Net tangible assets requirement for responsible entities (CP 388). ASIC adopted Option 1 (increase financial thresholds in line with inflation), which received the most support.
The changes will:
- increase minimum financial thresholds in the net tangible assets requirement to reflect inflation between June 2013 (when they were last updated) and March 2026;
- introduce annual indexation to ensure thresholds remain current; and
- apply to responsible entities, IDPS operators and corporate directors of retail corporate collective investment vehicles.
The changes will commence on 1 July 2027, with the thresholds applying from that date to include the first annual indexation adjustment. ASIC will amend ASIC Corporations (Financial Requirements for Responsible Entities, IDPS Operators and Corporate Directors of Retail CCIVs) Instrument 2023/647 (ASIC Instrument 2023/647) and update Regulatory Guide 166 AFS Licensing: Financial requirements (RG 166) to reflect the changes.
See: Media Release, CP 388, ASIC Instrument 2023/647, RG 166
Fintech
ASIC releases key themes and areas of focus from its Financial Markets and Innovation roundtable
On 30 June 2026, ASIC held a Financial Markets and Innovation Roundtable with industry, academic and government participants, coinciding with the publication of Report 835 Innovation in Financial Markets and Financial Market Infrastructure (Report 385). The discussion focused on keeping Australia’s capital markets efficient, resilient and globally competitive while supporting innovation with appropriate investor protections.
Four key themes emerged from the Roundtable:
- Preparing Australia for a more global market with innovation driven by distributed ledger technology, AI and market infrastructure enhancements (including plans to tokenise Austraclear and extend post-trade processing windows by 2027);
- Getting the foundations right for growth by modernising market infrastructure before pursuing transformational reforms, including priorities around fixed income infrastructure, clearing and settlement systems, and regulatory settings that support innovation;
- Prioritising innovation to fix problems and boost productivity. Over the counter settlement and fixed income markets were identified as areas ripe for innovation, while tokenisation was seen as inevitable with mixed views on its near-term benefits; and
- Maintaining trust and investor protection, with clear rules and oversight for tokenised products, AI-enabled services and new market models.
ASIC will hold targeted industry workshops and engage with regulatory peers before reconvening Roundtable participants to assess progress.
See: Media Release, Report 835
Other
APRA releases response to consultation on remaking Level 3 conglomerate prudential standards
On 27 July 2026, APRA released its response to submissions on the consultation to remake three Level 3 conglomerate prudential standards ahead of their scheduled sunset on 1 October 2026.
Following the consultation, APRA will remake the following Prudential Standards with administrative updates:
- 3PS 221 Aggregate Risk Exposures;
- 3PS 222 Intra-group Transactions and Exposure; and
- 3PS 310 Audit and Related Matters.
APRA has indicated that the updates do not introduce new requirements for conglomerate groups, as contemplated in the consultation.
See: Media Release, Response Letter
AFCA published guidance on process for raising jurisdictional objections
On 28 July 2026, AFCA issued guidance to members on when and how to raise a jurisdictional review through the member portal.
If a member believes AFCA cannot consider a complaint because it falls outside AFCA’s jurisdiction, the member should submit a Jurisdiction Review request through the member portal during the Referral stage.
AFCA identified cases where members raised jurisdictional issues in their final response instead of submitting a Jurisdiction Review request through the portal. In these cases, complaints progress to the wrong team, which can cause unnecessary delays if the complaint later needs to be referred back to the Rules team for assessment.
See: Media Release, Guidance
Authors: Jonathan Gordon, Partner; Corey McHattan, Partner; Samantha Carroll, Partner; Hong-Viet Nguyen, Partner; Deuchar Allen, Lawyer and Charlotte Ekins, Graduate.
