Mackay Chapman June 2025 ASIC Update

In this month’s ASIC update:

• Snaffle sued for inflated pricing and unlawful credit charges
• Super trustees are on notice, says ASIC
• Extended relief for deposit and insurance distributors
• ASIC warns consumer lease providers amid compliance gaps post-reforms
• Resimac sued over poor treatment of struggling home loan customers
• Key financial reporting and audit priorities for 2025-26
• ASIC proposes to combine and extend financial advice rules
• New regulatory guidance to support BNPL reforms

Keep reading for more information and key details.

Snaffle sued for inflated pricing and unlawful credit charges

ASIC has launched legal action against Snaffle (operated by Walker Stores Pty Ltd), alleging the company breached credit laws by inflating product prices and charging unlawful interest on over 40,000 consumer contracts. 

According to ASIC, Snaffle's pricing model circumvented the 48% Annual Cost Rate cap by marking up goods such as fridges, washing machines, and mobile phones before applying interest. In three example cases, consumers allegedly paid up to $1,433 more than necessary. 

ASIC also claims Snaffle failed to disclose the actual cost of credit and used flat interest rate calculations not permitted under the National Credit Code. The regulator is seeking penalties, injunctions and adverse publicity orders.

Super trustees are on notice, says ASIC

In a hard-hitting speech, ASIC’s Simone Constant warned the super industry about “cracking trust” and rising regulatory expectations. She flagged issues with transparency, data quality, fee disclosure, and governance, especially in light of record-breaking member complaints. 

Constant noted that some trustees are still underinvesting in core systems and controls, saying poor frameworks “fail members and break the law.” 

ASIC expects boards to go beyond bare compliance, fix systemic issues, and put member outcomes first. 

The full speech can be read here.

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Extended relief for deposit and insurance distributors

ASIC is proposing to remake a legislative instrument that eases regulatory requirements for licensees distributing basic deposit and general insurance products. 

The current relief, which removes the need to appoint distributors as authorised representatives, expires on 1 October 2025. This reduction in red tape lowers compliance costs, making basic banking and insurance products more accessible to consumers. 

ASIC’s review shows the instrument remains effective and necessary, so it plans to extend it for five more years while monitoring feedback and regulatory experience. 

Stakeholders feedback closed on 25 June 2025 ahead of the final decision.

ASIC warns consumer lease providers amid compliance gaps post-reforms

ASIC’s review shows that many consumer lease providers are still falling short on rules meant to protect customers. 

Even though some providers have left the market after recent reforms, nearly 25% of leases are in arrears, showing many people are struggling to keep up with payments. 

Most repayments are made through Centrepay, but planned changes to Centrepay may push more providers out of this market. Some providers are switching to other credit products, which could bring new risks for consumers. 

ASIC found that providers often don’t follow key rules around how much they can charge, checking if the lease suits the customer, and helping customers in financial hardship. 

ASIC is continuing to take action against parties it considers “bad actors”, the recent action against Snaffle / Walker Stores , accused of overcharging customers, a recent example. 

Resimac sued over poor treatment of financially struggling home loan customers

ASIC has launched legal action against Resimac Limited, accusing the home loan manager of failing to support thousands of customers facing financial hardship properly. 

The regulator says Resimac used a ‘one size fits all’ method when assessing hardship requests, demanding a lot of standard information from vulnerable customers, often without considering if it was relevant or already provided. If customers didn’t supply this info, their hardship applications were quickly rejected.

Deputy Chair Sarah Court called this unfair, especially for customers dealing with personal issues like domestic violence, illness, or bereavement. In ASIC’s view, many lenders still put up unnecessary barriers and treat hardship applications with a cookie-cutter approach, causing harm.

ASIC is seeking penalties, public orders, and costs. Resimac was among 10 lenders reviewed by ASIC in 2023 for how they handle financial hardship cases.  The resultant action demonstrates the risks that reviews or surveillance programmes by ASIC pose, with regulatory action and civil penalty litigation a potential outcome.

Key financial reporting and audit priorities for 2025-26

ASIC has announced its main priorities for financial reporting and audits for the 2025-26 year to help improve the accuracy and quality of company reports in Australia. 

The focus will be on areas requiring careful judgment, such as how companies recognise revenue, value assets, and estimate future costs, especially considering recent market changes. 

ASIC plans to review more audit files, targeting those with changes or potential errors, as well as a random selection of audits. 

They are also checking the first audited reports submitted by superannuation funds and will continue reviewing these in 2025-26, paying close attention to investment disclosures and marketing expenses.

Companies that were previously exempt from submitting financial reports now have to comply, and ASIC will follow up with those who fail to lodge their reports. 

New mandatory climate-related sustainability reporting rules start for large companies in 2025, and ASIC encourages them to prepare early and will review reports at the end of the year. 

The regulator is also investigating auditors for conflicts of interest and encourages self-reporting of any problems, with findings expected later this year. 

Lastly, ASIC has updated guidance on tax residency disclosures for public companies, effective from for financial reporting period on and from 1 July 2024.

Find out more at the ASIC release.

ASIC proposes to combine and extend financial advice rules

ASIC is asking for feedback on its plan to combine three existing financial advice rules into one and extend them for another five years. 

These rules are set to expire on 1 October 2025. The rules cover advertising by product issuers, general advice warnings, and financial services guides. ASIC has reviewed these rules and found they work well and are still needed. Only minor changes are planned, and the main content will stay the same.

Under the law, these kinds of rules automatically expire after 10 years unless ASIC takes action to keep them. ASIC wants people to send their feedback by 5pm AEST on 12 June 2025 to the email provided.

More information can be found here. 

New regulatory guidance to support BNPL reforms

ASIC has published a new regulatory guide to help buy now, pay later providers understand their responsibilities. 

Regulatory Guide 281 explains the key rules for low-cost credit contracts, including updated responsible lending requirements. ASIC Commissioner Alan Kirkland said these reforms will better protect Australian consumers using BNPL services.

After releasing a draft guide and consultation paper in February, the body received 16 submissions from providers, industry groups and consumer advocates. ASIC made clarifications and added examples based on this feedback. 

Kirkland urged providers without a credit licence to apply quickly. Those who had not had their applications accepted by 10 June risk operating without a licence, which is illegal.

More information can be found here.

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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.