Mackay Chapman April ASIC Update

In this month’s ASIC update:

• $35 million penalty highlights focus on market data integrity
• Complaints data dashboard puts firm performance into public view
• Sustainability reporting moves from policy to implementation
• Late lodgements show basic compliance still under scrutiny
• Technical relief updates continue across credit and disclosure
• ASX governance review reinforces focus on system resilience

We break down what matters below.

Market integrity enforcement lands $35 million penalty

ASIC has secured a $35 million penalty against Macquarie Securities following failures in short sale reporting.

The proceedings related to alleged misreporting of tens of millions of short sale transactions over a prolonged period. The Court found that Macquarie failed to correctly report at least 73 million short sales, with ASIC identifying between approximately 298 million and 1.5 billion affected transactions over more than a decade.

Short sale reporting obligations sit within Australia’s market integrity framework under the Corporations Act 2001, particularly the regime governing reporting of short positions and transparency in trading activity. These disclosures are relied on by investors, regulators and market operators to assess market sentiment, liquidity and risk. Inaccurate reporting undermines the reliability of that data and, in turn, confidence in the integrity of the market.

Macquarie was found to have engaged in misleading or deceptive conduct in connection with the misreporting, and to have failed to maintain adequate risk management systems, supervisory policies and procedures, and the organisational and technical resources required to comply with its obligations. It also failed to provide accurate regulatory data to the market operator over an extended period.

ASIC identified deficiencies in systems, controls and oversight processes, which allowed the misreporting to occur and continue undetected despite the scale and duration of the issue.

The size of the penalty, together with the Court’s findings, reinforces that ASIC views the accuracy of market data as fundamental to market integrity. Failures in reporting systems are being treated as substantive breaches where they impact transparency and confidence in financial markets.

ASIC moves toward greater transparency with complaints data

ASIC has launched a new financial complaints data dashboard, providing consolidated and publicly accessible data on complaints received across the financial services sector.

The dashboard captures complaints across banking, credit, insurance and investments, allowing users to filter by firm, product and issue type, as well as track trends over time.

The data sits alongside outcomes from the Australian Financial Complaints Authority, which operates Australia’s external dispute resolution scheme for financial services. Together, these sources provide a clearer picture of both internal complaints handling and escalated disputes.

By making this information more accessible, ASIC is increasing transparency and creating a more visible benchmark for firm performance across the sector.

Sustainability reporting gets a practical rollout push

ASIC has released a series of e-learning modules aimed at supporting organisations preparing for sustainability reporting obligations.

The modules are designed for directors, preparers and advisers, and cover governance, risk management, metrics and targets associated with climate-related disclosures.

They align with global sustainability reporting frameworks such as those issued by the International Sustainability Standards Board, which are forming the basis of Australia’s emerging climate-related disclosure regime.

The rollout of mandatory climate-related financial disclosures in Australia reflects a broader shift toward integrating sustainability into financial reporting. The focus is increasingly on whether organisations can produce disclosures that are accurate, consistent and useful in practice.

Late financial reporting can attract enforcement action

Three large proprietary companies within the MECCA group have paid $594,000 in infringement notices after allegedly failing to lodge financial reports within the required timeframes. Payment of an infringement notice is not an admission of guilt or liability, and the companies are not regarded as having been convicted of the alleged offence.

Under the Corporations Act 2001, companies are required to lodge financial reports within prescribed deadlines, with timeframes depending on the type of entity.

ASIC found that multiple entities allegedly failed to meet these obligations, resulting in enforcement action through infringement notices.

Late lodgement impacts transparency for stakeholders including creditors, investors and regulators who rely on timely financial information. 

The outcome reinforces that even basic compliance obligations continue to attract serious attention from ASIC.

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ASIC updates credit and disclosure settings

ASIC has remade a number of legislative instruments providing technical relief, along with updates to credit disclosure requirements.

These changes relate to obligations under the National Consumer Credit Protection Act 2009  and associated regulations, which govern consumer lending, disclosure and responsible lending obligations.

The updates are intended to ensure that existing relief remains current and aligned with how credit products are structured and disclosed in practice.

In many cases, the remade instruments continue existing relief with minor refinements rather than introducing new obligations. However, they still require review to ensure compliance with updated conditions.

These types of updates form part of ongoing regulatory maintenance and can have practical implications for disclosure and compliance processes.

ASX governance back under scrutiny

ASIC has published the final report of its inquiry panel into the Australian Securities Exchange, examining governance, capability and risk management practices.

The inquiry followed concerns regarding operational incidents and the management of key infrastructure projects, including issues associated with the CHESS replacement program, a critical component of Australia’s market settlement infrastructure.

The panel considered board oversight, executive capability, project governance and the adequacy of risk management frameworks.

While acknowledging areas of progress, the report identifies the need for continued improvement in governance structures, accountability and operational resilience.

Given the ASX’s central role in Australia’s financial system, the findings reflect broader expectations around the governance and reliability of critical market infrastructure.

The contents of this article do not constitute legal advice and it is not intended to be a substitute for legal advice and should not be relied upon as such.  It is designed and intended as general information in summary form, current at the time of publication, for general informational purposes only.  You should seek legal advice or other professional advice in relation to any particular legal matters you or your organisation may have.

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