The Australian Securities and Investments Commission has detailed its strategic priorities under a new Statement of Expectations, alongside ongoing investigations into major audit firms, consumer remediation reviews and record enforcement penalties.
Government Mandate and Corporate Priorities
The Australian Government has issued ASIC with a new Statement of Expectations requiring the regulator to support economic growth while maintaining protections for consumers and market integrity. The mandate highlights the necessity of considering regulatory impacts on small businesses and new market entrants.
In response, ASIC noted that effective regulation and economic growth remain complementary goals. Clear rules provide confidence for consumers and encourage businesses to invest, compete and innovate.
ASIC has also released its Corporate Plan 2026 to 2027. The plan sets out five key priorities: improving outcomes for consumers and small businesses, strengthening professional conduct, supporting retirement outcomes and superannuation services, building resilient operations, and maintaining confidence across financial markets.
Audit Sector Oversight and Whistleblower Investigations
ASIC is conducting active investigations into KPMG concerning allegations of confidential client information misuse, whistleblower victimisation concerns, and auditor transparency reporting.
Furthermore, the regulator is executing a broader surveillance into audit conduct and potential whistleblower complaints across four major firms: KPMG, Deloitte, EY and PwC. An update on these surveillance activities is expected before the end of the year.
Consumer Protection in Banking and Insurance
A recent ASIC review into eight banks identified management and monitoring weaknesses in mortgage offset accounts. Following the findings, banks reported paying more than 55 million Australian dollars in compensation to affected customers, with additional remediation anticipated.
Separately, a review of motor vehicle insurance practices revealed that insurers failed to clearly explain the drivers behind premium increases. Additionally, policyholders were not consistently informed that paying premiums annually rather than by instalments could yield savings of up to 20 per cent.
Private Credit Risks and Transparency Calls
ASIC has highlighted transparency concerns within the wholesale private credit sector, referencing recent developments such as the collapse of Bathla. The regulator noted that available data on Australian private credit funds remains significantly lower than levels in the United States or the United Kingdom.
Over the past 18 months, ASIC has intensified its focus on private markets, publishing a discussion paper and releasing 10 principles of private credit in November 2025. While acknowledging the role of private credit in funding infrastructure and commercial enterprise, ASIC emphasized that effective governance, valuation practices and oversight remain critical.
Record Enforcement Penalties and Returns
In the preceding financial year, ASIC recorded its highest enforcement outcomes. Civil penalty orders totalled 830 million Australian dollars, and 644 million Australian dollars was returned to Australians in connection with regulatory intervention.
Among the key enforcement cases, the Federal Court imposed record penalties exceeding 300 million Australian dollars against Union Standard International Group and two former authorised representatives. The case involved systemic unconscionable conduct relating to high-risk contracts for difference, which resulted in customer losses exceeding 83 million Australian dollars.
Frequently Asked Questions
What are the core priorities in ASIC's Corporate Plan 2026-27?
ASIC's Corporate Plan outlines five priorities: improving consumer and small business outcomes, strengthening professional conduct, supporting retirement outcomes and superannuation, supporting resilient operations, and driving market integrity.
How much compensation was paid regarding mortgage offset accounts?
Banks have reported paying over 55 million Australian dollars in compensation following an ASIC review into weaknesses in mortgage offset account setup and management.
What enforcement penalties did ASIC secure in the recent financial year?
ASIC secured civil penalty orders totalling 830 million Australian dollars, with 644 million Australian dollars paid back to Australians in connection with its work.
