Mackay Chapman July 2025 ASIC Update
In this month’s ASIC update:
- ASIC takes legal action against GFG Alliance companies for failing to lodge financial reports
- Misconduct and looming compliance deadlines in financial advice
- Inquiry into ASX governance and risk management
- ASIC doubles down on credit misconduct, hardship failures and dodgy debt firms
- Sharp rise in share sale fraud
- Court rules against ASIC in unfair contract term appeal
- ASIC sues RAMS over systemic misconduct in home lending
- Former adviser banned for 10 years over crypto investment scam
Keep reading for more information and key details.
ASIC takes legal action against GFG Alliance companies for failing to lodge financial reports
ASIC has filed proceedings in the NSW Supreme Court against Liberty Primary Metals Australia, Tahmoor Coal and Liberty Bell Bay (three large proprietary companies in the GFG Alliance Group) for failing to lodge annual financial reports.
Liberty Primary Metals Australia and Tahmoor Coal missed their 2024 reporting deadlines. Liberty Bell Bay has not lodged reports for four consecutive years (2021–2024).
The reports in question include financial, directors’ and auditors’ reports.
ASIC’s position is that timely financial reporting is critical for creditors and stakeholders assessing large entities, and this case demonstrates its willingness to take action to enforce the law in this area.
Misconduct and looming compliance deadlines in financial advice
In a keynote speech at the Professional Planner Licensee Summit, ASIC Commissioner Alan Kirkland warned of rising risks in the financial advice sector, particularly high-pressure sales tactics and looming qualification deadlines.
Kirkland called out aggressive marketing tactics that lure Australians into unsuitable superannuation switches and high-risk investments, often through telemarketing or misleading “super health checks.” ASIC is prioritising enforcement in this space and has multiple investigations underway.
He also urged licensees to prepare for the 1 January 2026 deadline requiring all financial advisers to hold approved qualifications or be formally recognised under the experienced provider pathway. A recent spot check found that over 4,600 advisers may not yet be qualified.
ASIC is also reviewing offshore outsourcing practices in advice and funds management. While agnostic on outsourcing itself, Kirkland stressed that licensees remain fully responsible for meeting regulatory obligations regardless of where services are delivered.
Inquiry into ASX governance and risk management
ASIC has announced an Inquiry into the Australian Securities Exchange (ASX), targeting its governance, capability, and risk management frameworks. The move follows ongoing concerns from both ASIC and the RBA about ASX’s ability to maintain a secure and stable infrastructure.
An expert panel will lead the Inquiry, with findings to be published in a formal report. ASIC Chair Joe Longo said repeated and serious failings (such as the CHESS batch settlement outage) have shaken confidence in ASX’s operations.
The CHESS incident will now be examined as part of the broader Inquiry, and the original investigation into that event has been discontinued.
ASIC expects ASX to cooperate fully and continue prioritising safe operations and delivery of CHESS replacement Release 1, due mid-2026.
ASIC doubles down on credit misconduct, hardship failures and dodgy debt firms
ASIC Commissioner Alan Kirkland used his address at the 2025 AFIA Risk Summit to reaffirm ASIC’s focus on protecting vulnerable credit users, especially amid ongoing cost-of-living pressures.
He warned lenders and brokers that ASIC will continue targeting predatory lending, inadequate hardship responses, and unfair debt management practices.
Key enforcement areas include:
- Car loans to vulnerable and First Nations consumers
- Unlicensed or misleading lending disguised as leases
- Brokers failing to meet credit law standards
- Systemic hardship failures, like those found at NAB, Westpac and Resimac
- Debt management and credit repair firms acting against consumer interests
ASIC also flagged a deeper look into mortgage broker conduct, with 75% of new loans now broker-led, and a review of AI and cybersecurity risks in credit operations.
Commissioner Kirkland made ASIC’s position clear: ASIC will keep using every regulatory tool available to enforce long-standing credit protections.
Sharp rise in share sale fraud
ASIC has issued a strong warning to AFS licensees and investors following a surge in share sale fraud linked to identity theft.
Updated guidance in INFO 237 urges licensees to tighten onboarding and monitoring practices, following a sevenfold increase in fraud reports over four years. Investors have lost entire portfolios and millions of dollars through unauthorised share sales.
ASIC calls on licensees to step up fraud prevention, including verifying new client documents, flagging suspicious trading, and checking for mismatched personal information.
Commissioner Simone Constant stressed the emotional and financial harm caused by these scams and urged investors to use multi-factor authentication, strong passphrases, and regularly check trading activity.
The updated INFO 237 adds to ASIC’s broader scam prevention work across banking and superannuation.
Court rules against ASIC in unfair contract term appeal
The Full Federal Court has dismissed ASIC’s appeal against Auto & General Insurance over an alleged unfair term in its home and contents insurance policies.
ASIC had argued the clause, requiring customers to notify the insurer if "anything" changed, was vague, misleading, and gave the insurer excessive discretion to deny or reduce claims.
The Court disagreed, upholding the original decision that the clause was not unfair under the Insurance Contracts Act.
ASIC is reviewing the outcome. Auto & General updated the relevant policy wording in 2023 across brands, including Budget Direct, ING, and Qantas Insurance.
ASIC sues RAMS over systemic misconduct in home lending
ASIC has launched civil proceedings against RAMS Financial Group for widespread misconduct and governance failures across its franchise network between 2019 and 2023.
RAMS, a Westpac subsidiary, admitted to dealing with unlicensed referrers, failing to supervise staff appropriately, and allowing franchisees to submit falsified documents, including fake payslips and manufactured home sale contracts.
ASIC Deputy Chair Sarah Court called it a “systemic organisational failure” that created risks for borrowers and boosted commissions for franchisees.
The regulator is seeking penalties and declarations under the National Consumer Credit Protection Act. RAMS has admitted liability and provided remediation to affected customers.
Former adviser banned for 10 years over crypto investment scam
ASIC has banned former Wollongong and Sutherland Shire adviser Glenda Rogan from providing financial services for 10 years after she misled clients into investing $14.8 million in a cryptocurrency scam.
Rogan, a former authorised representative of Private Wealth Pty Ltd and accountant at Fincare, told clients they were investing in a high-yield fixed interest product. In reality, she transferred funds to an unlicensed platform, “The Financial Centre” (listed on ASIC’s Investor Alert List), and converted them to cryptocurrency.
ASIC found Rogan was not a fit or proper person to work in financial services and was likely to break the law again. The ban also prevents her from controlling any financial services business.
Investigations are ongoing. Affected individuals can complain to AFCA or seek independent legal advice from a specialist lawyer.
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.
