Mackay Chapman November 2025 ASIC Update

In this month’s ASIC update:

• Markets roadmap unveiled at National Press Club
• ASIC updates digital asset guidance to clarify licensing obligations
• RAMS fined $20 million for systemic home-loan compliance failures
• ASIC seeks feedback on extending relief for litigation funding
• Credit priorities with a focus on hardship, brokers and debt management
• Major gaps flagged in super fund retirement communications
• ASIC flags widespread failures in auditor independence compliance

Keep reading for the key details.

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ASIC unveils public and private capital markets roadmap at National Press Club

ASIC Chair Joe Longo addressed the National Press Club on 5 November 2025 releasing ASIC’s roadmap for building stronger, more efficient and globally competitive capital markets.

His speech, ‘Open for opportunity: Taking charge of the future of our financial markets’ outlined regulatory settings aimed at attracting capital, supporting innovation, and reducing systemic risks.

The ‘roadmap’ report, Advancing Australia’s evolving capital markets: Discussion paper response (REP 823), outlines ASIC’s roadmap to unlock opportunities and tackle emerging risks in Australia’s public and private markets.  It focuses on ‘embracing new capital flows and technologies, keeping pace with evolving investor needs, and making it easier for business and growth capital’.

The roadmap brings together:

• Key findings from ASIC’s surveillance into the private credit sector (REP 820). 
• Private credit expert insights from the Private Credit Report released in September (REP 814)
• Industry and expert insight from submissions received from around 100 sources in response to ASIC’s discussion paper
• Expert insights from Dr Carole Comerton-Forde on the forces shaping the future of Australia’s capital markets (REP 822) and 
• Insights from EY Parthenon on international approaches to private markets reporting (REP 821).

The roadmap states “ASIC strongly backs the modernisation of public markets to fuel growth and encourage participation, including support for new listing frameworks and robust trading platforms”.  It details work to streamline IPOs and disclosure requirements, and the need for market operators and government to consider director responsibilities, free float requirements and facilitate foreign listings.

In private markets, the report outlines states ASIC require better regulatory tools for effective supervision of funds, including notification of wholesale funds in operation, data collection, and independent audited financial reports for wholesale funds.

The report underscores the growing role private credit is playing in Australia’s financial system and outlines clear principles for private markets to lift practices to promote confident and informed participation by investors and borrowers.

For private credit, ASIC will also:

• issue a catalogue summarising fund managers’ legal obligations and related ASIC regulatory guidance
• refresh funds management regulatory guidance 
• engage with industry while working to enhance industry standards.

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ASIC updates digital asset guidance to clarify licensing obligations

ASIC has updated its digital asset guidance, confirming that products like stablecoins, wrapped tokens, tokenised securities, and digital asset wallets are considered financial products under existing law. 

This means many providers will need an AFS licence, with ASIC emphasising that licensing brings core consumer protections and more transparent oversight.

To help the industry transition, ASIC has issued a sector-wide no-action position until 30 June 2026 and proposed targeted relief for distributors of certain stablecoins and wrapped tokens, as well as custodians. Feedback on the draft instruments closed on 12 November 2025.

The update follows consultation on INFO 225 and includes new examples and clarifications requested by industry. 

ASIC says it will consider the no-action position when reviewing past conduct, but will continue to act where there is significant consumer harm.

The refreshed guidance aligns with the Government’s proposed digital asset reforms and builds on relief granted this year for projects involving tokenised assets and licensed stablecoin issuers.

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RAMS fined $20 million for systemic home-loan compliance failures

The Federal Court has ordered RAMS to pay a $20 million penalty after admitting to widespread breaches in the way it arranged home loans between 2019 and 2023. 

The failures included using unlicensed referrers, poor conflict-of-interest controls, inadequate supervision of franchise representatives, and not having the systems needed to ensure credit activities were carried out efficiently, honestly and fairly.

ASIC highlighted serious misconduct uncovered within the franchise network, including false pay slips and altered customer financial details to push loans through.

RAMS admitted the conduct and has remediated affected customers. Westpac has since wound down the business, though existing RAMS-branded loan customers continue to be supported.

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ASIC seeks feedback on extending relief for litigation funding and conditional costs schemes

ASIC is consulting on a proposal to extend two legislative instruments (ASIC Credit (Litigation Funding-Exclusion) Instrument 2020/37 and ASIC Corporations (Conditional Costs Schemes) Instrument 2020/38), covering litigation funding and conditional costs schemes until 31 March 2030. 

The current instruments, which exempt specific arrangements from credit and financial services requirements, are due to expire on 31 January 2026.

The extension aims to give funders, lawyers and scheme members regulatory certainty while the Government reviews its broader policy settings. Submissions closed on 14 November 2025.

For more information, head to the ASIC newsroom. 

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Credit priorities with a focus on hardship, brokers and debt management

In his keynote speech at Credit Law 2025, ASIC Commissioner Alan Kirkland set out ASIC’s key priorities across the consumer credit landscape. 

He emphasised that credit protections must be applied consistently, and that ASIC will continue to target misconduct wherever it appears.

ASIC’s current areas of focus include mortgage brokers, motor vehicle finance, financial hardship practices, debt management and credit repair, and debt collection. New surveillances are underway, alongside ongoing enforcement action. 

Kirkland highlighted recent cases involving inappropriate car finance, failures to handle hardship applications properly, misleading debt management practices, and business models structured to avoid consumer credit laws.

ASIC has also sharpened its scrutiny of brokers’ best-interests duty compliance, the conduct of motor vehicle lenders, and debt management businesses following repeated consumer complaints.

Kirkland reinforced ASIC’s broader message: no matter the product or business model, if conduct harms consumers or their financial futures, ASIC will intervene.

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Major gaps flagged in super fund retirement communications

ASIC has warned that many super trustees aren’t giving members the clear, tailored information they need to make confident retirement decisions. 

A review found widespread reliance on generic, pre-retirement messaging, with limited support for members already in retirement (despite the growing number of Australians entering this phase).

The regulator also found little tailoring for First Nations members, culturally and linguistically diverse groups, or vulnerable customers, and noted that a third of trustees lacked formal processes for gathering member feedback.

ASIC says trustees with strong governance and data capabilities are delivering better outcomes and is urging funds to lift standards by focusing on practical retirement information, tailoring messaging to diverse member needs, improving accessibility, and strengthening oversight of external providers. 

A joint ASIC/APRA retirement ‘pulse check’ will be released later this year.

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ASIC flags widespread failures in auditor independence compliance

ASIC’s latest review has found many auditors unable to show they were complying with basic independence and conflict-of-interest requirements. 

Fifteen auditors were identified as likely breaching mandatory rotation rules, prohibited relationships or bans on non-audit services, with none self-reporting their breaches despite ASIC reminders.

ASIC also found that some auditors failed to critically assess threats to their independence, instead relying on a tick-the-box approach. Enforcement action has already followed, including cancellation of a registration, a $78,250 infringement notice to Nexia Perth, and enforceable undertakings with auditors linked to Hall Chadwick.

ASIC says independence is fundamental to audit quality and warns further inquiries are underway. It is urging auditors to review REP 817 and address compliance gaps.

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

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