Mackay Chapman October 2025 ASIC Update
In this month’s ASIC update:
- Macquarie to Refund Shield investors after ASIC action
- ANZ faces $240 million penalty
- ASIC reduces complaints reporting frequency for small banks
- Action against RACQ over misleading renewal comparisons
- Sustainability report audit requirements clarified
- ASIC review finds super fund financial reports need improvement
- ASIC urges financial advisers to act before qualification deadline
Keep reading for more information and key details.
Macquarie to refund Shield investors after ASIC action
Macquarie Investment Management Limited (MIML) has admitted breaching the Corporations Act 2001 (Cth) in relation to Shield Master Fund and will repay affected super members.
ASIC commenced proceedings in the Federal Court against MIML following admissions that it did not act ‘efficiently, honestly and fairly, and failed to properly monitor Shield appropriately by failing to place it on a watchlist for heightened monitoring.
MIML has entered into a court-enforceable undertaking, under which it will return 100% of invested amounts, less withdrawals, aiming to restore the retirement savings of around 3,000 members who invested $321 million between 2022 and 2023.
ASIC has decided not to seek imposition of civil penalties, but only declarations of contravention, alongside the EU.
ASIC Deputy Chair Sarah Court stressed that trustees on choice platforms must actively safeguard member funds. She noted that many believed their funds were safe despite Shield having no track record.
‘Many members thought their funds were safe when they used Macquarie’s super platform to invest in Shield, which had no track record.
‘ASIC’s investigation will see Macquarie return these members to the position they were in before their retirement savings were eroded.’
This case highlights the role of superannuation trustees as gatekeepers and the importance of transparency and oversight in investors’ retirement savings. It also emphasises ASIC’s expectations and willingness to pursue enforcement outcomes against platform providers.
ASIC has also commenced proceedings against Equity Trustees in relation to Shield. In addition, a number of trustees/platform providers were involved in First Guardian investments.
ANZ Faces $240 Million Penalty
ANZ has admitted to serious misconduct across its institutional and retail operations, including unconscionable conduct in a $14 billion government bond deal, misreporting bond trading data, failing to respond to hardship requests, incorrect bonus interest payments, and not refunding fees for deceased customers.
Around 65,000 customers were affected.
ASIC and ANZ will ask the Federal Court to impose penalties totalling $240 million ($125 million for institutional matters, including a record $80 million for unconscionable conduct, and $115 million for retail issues).
This marks the eleventh civil penalty proceeding against ANZ since 2016, with total penalties exceeding $310 million.
ASIC Reduces Complaints Reporting Frequency for Small Banks
ASIC has granted small banks a temporary no-action position to reduce the frequency of internal dispute resolution (IDR) reporting from every six months to once per year.
This change follows recommendations from the Council of Financial Regulators (CFR) in its Review of Small and Medium-sized Banks, aiming to reduce regulatory costs and improve the competitiveness of smaller banks against larger institutions.
Under the no-action position, small banks are exempt from submitting IDR data in the January-February 2026 and January-February 2027 reporting windows.
ASIC has implemented this measure ahead of formalising the technical and system changes, which are expected in 2027.
ASIC Takes Action Against RACQ Over Misleading Renewal Comparisons
ASIC has commenced Federal Court proceedings against RACQ Insurance Limited (RACQ), alleging the insurer sent over 570,000 renewal documents between September 2019 and December 2024 containing false or misleading comparison pricing.
Customers were shown inflated “last period premiums,” giving the impression their insurance costs had risen far more than they actually had.
ASIC Deputy Chair Sarah Court said the conduct misled thousands of customers, making it harder to compare policies and potentially causing them to overpay.
In one example, a customer’s renewal showed a 1.5% increase, when their actual premium had been 40% lower than stated.
ASIC alleges RACQ was aware of complaints soon after introducing the practice but failed to act for more than five years.
The misleading figures appeared across multiple types of insurance, including home, car, caravan, boat, and pet policies.
ASIC Clarifies Sustainability Report Audit Requirements
ASIC has published FAQs to help companies and auditors understand their obligations under the Corporations Act for sustainability reports.
The guidance explains what auditors must include in their reports, how liability settings apply, and who can conduct a review or audit.
It also helps companies preparing sustainability reports navigate auditor appointments, removals, and the extent of required review or audit.
The regulator said it will take a pragmatic, proportionate approach to supervision while the new requirements are phased in. Enforcement action is likely only in cases of serious or reckless misconduct.
More information can be found here.
Melbourne Man Sentenced for Kidman Resources Insider Trading
Duncan Stewart of Armadale, Victoria, has been sentenced to 18 months imprisonment for insider trading in relation to Kidman Resources and a Wesfarmers takeover bid.
He will be released immediately after entering a $10,000 recognisance to be of good behaviour for two years, alongside a financial penalty of $64,975.48.
Stewart pleaded guilty to buying $130,635.87 worth of Kidman shares in April 2019 while in possession of confidential takeover information, before it became public.
He sold the shares after Kidman’s announcement, making a profit of nearly $65,000. The court also noted his involvement in a second confidential takeover bid from Chilean miner Sociedad Química y Minera de Chile, which influenced a family member’s share purchases.
More information can be found here.
ASIC Review Finds Super Fund Financial Reports Need Improvement
ASIC’s first review of superannuation fund financial reporting and audits has found inconsistent investment disclosures, limited reporting of sponsorship and advertising expenses, and insufficient audit evidence for some investment valuations.
The review examined financial reports from 60 registrable superannuation entities (RSEs) and five audit files for the year ended 30 June 2024.
ASIC noted that inconsistent valuation methods and inadequate audit procedures could undermine members’ confidence in the accuracy of financial information.
The report signals ASIC’s commitment to improving audit quality and financial reporting in super funds, with further reports on auditor independence and overall audit quality to follow in 2025.
ASIC Urges Financial Advisers to Act Before Qualification Deadline
ASIC has warned financial advisers to urgently review their details on the Financial Advisers Register ahead of 1 January 2026, the deadline to meet qualifications standards for providing personal advice to retail clients.
ASIC data shows at least 3,459 relevant providers may not meet the standard, while 1,143 must complete required commercial law and taxation courses to provide tax (financial) advice.
Advisers cannot update the register themselves and must contact their AFS licensee.
ASIC highlighted common errors in reporting and will monitor compliance closely, considering further regulatory action if advisers or licensees fail to update records.
More information here.
The contents of this update and its 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.
