Mackay Chapman August 2025 ASIC Update

In this month’s ASIC update:

• Banks to refund $93 million after ASIC crackdown on excessive fees
• ASIC loses appeal in Finder Wallet crypto case
• ASIC warns Aussies off Bitget’s ‘high-risk’ crypto futures
• ASIC launches probe into debt and credit repair services
• ASIC sues Fortnum over cybersecurity after 9,000 client records leaked
• ACBF fined $3.5 million for misleading Indigenous consumers
• ASIC to renew disclosure relief for foreign securities offers

Keep reading for more information and key details.

Banks to refund $93 million after ASIC crackdown on excessive fees

Following ASIC’s latest review, banks will refund over $93 million to low-income customers who were wrongly charged high fees, often just for holding a basic transaction account.

The report found banks had failed to move vulnerable customers onto low-fee products, with some requiring people to visit a branch in person or show concession cards just to apply.

So far, more than 150,000 customers have already received refunds, and over 770,000 more are set to benefit soon. ASIC expects the changes will save low-income Australians up to $50 million a year in future fees.

While some banks have responded quickly (improving access and upgrading systems) ASIC says more work is needed, especially when these problems should never have happened in the first place.

ASIC will keep monitoring the sector and is encouraging consumers to ask their bank whether they’re in the correct account, and make the switch if they’re not.

ASIC loses appeal in Finder Wallet crypto case

The Federal Court has dismissed ASIC’s appeal against Finder Wallet (now Wallet Ventures) over its crypto product Finder Earn, ruling it was not a debenture, and therefore Finder Wallet was not required to hold an AFSL to offer the product and not in breach of the Corporations Act.

The decision confirms the original 2024 first instance judgment and underscores the regulatory grey area around how existing financial laws apply to crypto products.

While ASIC is reviewing the judgment, the outcome highlights the complexity in applying existing financial services laws to digital asset services. In the meantime, ASIC reminds crypto providers that some offerings can still be classified as financial products — and may trigger licensing obligations.

Product innovators should remain cautious. 

ASIC warns Aussies off Bitget’s ‘high-risk’ crypto futures

ASIC is warning investors not to use the crypto trading platform Bitget, which it says is offering high-risk, high-leverage futures products without an Australian Financial Services (AFS) licence.

Despite being accessible via app stores, Bitget’s products are not regulated in Australia, meaning users miss out on key protections like dispute resolution or client money safeguards.

Bitget is offering crypto futures with leverage up to 125:1 (far beyond ASIC’s 2:1 cap), exposing investors to massive potential losses from even minor market moves.

The warning follows similar action from regulators in France, Japan, Canada, Spain, and others, who’ve flagged Bitget as unlicensed and high risk.

ASIC urges Australians to check if a provider is licensed before investing. If it’s not licensed getting a return of capital or compensation when things go wrong can be near impossible.

ASIC launches probe into debt and credit repair services

ASIC is reviewing the debt management and credit repair sector amid concerns that some firms may be leaving financially vulnerable consumers worse off.

The surveillance will examine how 100 licensed operators are meeting their obligations under the National Consumer Credit Protection Act, focusing on issues like unfulfilled agreements, high fees, poor communication, and questionable advice (including steering people toward bankruptcy without cause).

Commissioner Alan Kirkland said ASIC has received multiple complaints of firms making bold promises and failing to deliver, with some consumers left chasing refunds or dealing with creditor pressure alone.

The findings will be published in 2026 and are part of ASIC’s ongoing push to clean up the sector.

ASIC brings civil penalty action against Fortnum over alleged cybersecurity failures

ASIC has commenced legal action against Fortnum Private Wealth to court, alleging the financial advice firm failed to manage to the required level cybersecurity risks, leading to a significant data breach that led tro client records being exposed on the dark web.

Despite having introduced a cybersecurity policy in 2021, ASIC alleges says the measures were inadequate, and the company failed to:

• Properly train or monitor its authorised reps (ARs),
• Hire or consult cybersecurity experts, or
• Establish a risk management system addressing cyber threats.

ASIC Chair Joe Longo said financial licensees must safeguard sensitive client data, and this lawsuit reflects the regulator’s enforcement focus on cyber resilience. ASIC is seeking penalties and declarations from the NSW Supreme Court.

Cybersecurity and related risk management is a complex risk for financial services businesses.  We expect that, if the matter proceeds to trial, it will provide important judicial consideration of the requirements of financial services laws for licensees in managing cyber risks and what ‘reasonable steps’ means.

ACBF fined $3.5 million for misleading Indigenous consumers

ACBF Funeral Plans has been hit with a further $3.5 million penalty, bringing total fines to $4.7 million, after ASIC won an appeal in the Federal Court.

The latest ruling found ACBF had deliberately misled Indigenous consumers by falsely claiming it was Aboriginal-owned or managed. The court called the conduct “callous and egregious.”

This follows an earlier $1.2 million penalty in 2023 for misleading consumers about funeral benefit payouts. 

Consumers affected by ACBF or Youpla can contact Services Australia for support or call 13 YARN for crisis help.

ASIC to renew disclosure relief for foreign securities offers

ASIC is proposing to remake six legislative instruments that make it easier for Australian investors to access foreign securities and offers, without triggering full local disclosure requirements.

These instruments offer relief where:

• The foreign issuer already complies with similar investor protections, or
• Very few Australian investors are targeted.

The remade rules will remain largely unchanged but aim to improve clarity and reduce ambiguity – for example, simplifying wording and removing outdated definitions.

ASIC is seeking feedback on the draft instruments before 1 October 2025. 

More info: Regulatory Guide 72 (RG 72) and Consultation Statement (CS 25).

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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.