ASIC actively scopes and monitors the shifting regulatory environment in which it operates. This informs ASIC’s ability to identify and assess the issues facing Australia’s financial system.
Drawing from these observations, ASIC has identified the most significant current, ongoing and emerging issues within its regulatory remit in 2025. ASIC has a broad remit and the issues outlined here cannot convey the full scope of work and surveillance underway at the agency, however identifying the key issues for 2025 is intended to provide insights for Australian businesses and consumers.
These issues impact a broad range of sectors ASIC regulates, but most importantly they have the potential to impact the safety, integrity and trust of Australia’s financial system.
ASIC will continue to adapt and be a proactive regulator that promotes a safe environment for Australian businesses and markets and that protects consumers.
Increased market volatility, geopolitical changes, the global accumulation of debt to drive growth, perceived and real inequality of wealth, shifts in the way capital is invested, and advances in artificial intelligence, data and cyber risk, are all key factors influencing the way ASIC views the issues facing Australia’s financial system.
The issues outlined are not ranked.
Changing dynamics between public and private markets
ASIC will be leading discussion on issues key to the ongoing and future success of Australia’s capital markets and seeking feedback on whether our regulatory settings and supervision approach needs to adapt in light of changing market dynamics.
Domestic and international regulators and policy makers are taking steps to review and respond to issues arising from these changes and to consider potential vulnerabilities and harms that may emerge with growth in private markets.
Both public and private markets are important to our economy and play a role in generating wealth. Through superannuation investments, many Australians have indirect exposure to private assets. Private markets operate differently than public markets and are inherently less transparent.
We are also increasing our focus on private markets through our surveillance work: as part of this work ASIC will review the governance processes and practices of a sample of responsible entities of retail private credit funds, including their asset valuation and liquidity management practices.
Superannuation members being let down by their fund and trustee
Around three million Australians will become eligible to draw from their superannuation in the next 10 years with at least $750 billion of funds shifting from the accumulation phase to the retirement phase.
As more members enter the retirement phase, they will have more frequent, and more complex, interactions with their superannuation funds so trustees will need to ensure they can meet members’ changing needs. Between 2021 and 2023, complaints to the Australian Financial Complaints Authority about superannuation funds’ service provision (complaints in the ‘service’ issue category) doubled.
ASIC will publish findings from a review of member services and will not hesitate to take enforcement action where appropriate.
Consumer losses through fraud and scams, driven by increasing sophistication and the use of technology
Evolving types of financial frauds and scam continue to threaten consumers, investors, and small businesses, as people are deceived out of their money and/or into divulging sensitive personal information.
Cryptocurrency and celebrity endorsement impersonations are amongst the prevalent scam activities.
ASIC has taken down over 7,300 phishing and investment scam websites since the service was launched in July 2023. ASIC also maintains an Investor Alert List currently adding on average 20 companies, businesses or websites per week to warn Australians.
ASIC will continue to support the ACCC’s National Anti-Scam Centre including by sharing scam intelligence through the automated data sharing capability.
Unsuitable superannuation advice resulting in adverse consumer outcomes
As more Australians approach retirement, there is higher demand for good quality retirement-related financial advice, including around managing longevity risk and ensuring a sustainable income stream.
In recent work, ASIC has observed considerable volumes of superannuation fund inflows into high-risk investments, including property investments, via superannuation platforms and significant payments of superannuation monies to lead generation businesses. High pressure sales tactics and the use of social media algorithms to target receptive audiences, has enabled rapid growth in these types of business models.
ASIC will continue to warn Australians about this conduct and will take enforcement action where we see misconduct exploiting superannuation savings. ASIC also has a current surveillance underway assessing the quality of financial advice to establish SMSFs.
Cyber-attacks, data breaches, and internal system failures undermining market confidence and causing financial loss
The continuing risk in this area is driven by the ongoing digitalisation of the financial sector, reliance on controls of third-party service providers, and legacy systems, which are vulnerable to cyber attacks and data breaches.
ASIC expects directors to ensure their organisation’s risk management framework adequately addresses cyber security threats and that controls are in place to protect assets and information and enhance cyber resilience.
ASIC will be reviewing cyber and operational resilience in various sectors and sharing its findings with companies and entities based on its findings.
ASIC has active investigations underway in the cyber security space and will provide more information through 2025 on how we are bringing the full force of the law against those found to have failed in their duties.
Poor household outcomes following natural disasters due to deficient claims handling by general insurers
Recent reviews have found persistent issues in the delivery of claims handling services following natural disasters (including multiple disasters at the same time), which are expected to increase in frequency and severity as the effects of climate change are felt.
Unreasonable delays in assessments, decision-making and repairs, poor communications throughout the life of a claim, and settlement arrangements that do not meet customer and community needs are particular areas ASIC will be monitoring in 2025.
Impact of ASX’s CHESS replacement on Australian markets
The sound and seamless implementation of the replacement of the Clearing House Electronic Subregister System (CHESS) is fundamental to maintaining investor confidence and the orderly and efficient operation of Australia’s financial markets.
ASIC, in partnership with the RBA, will continue to focus on ASX maintaining resilience, reliability and integrity of its clearing and settlement operations as the replacement project progresses, and that it appropriately manages associated risks.
Poor quality climate-related financial disclosures leading to misinformed investment decisions
High quality, consistent and comparable information about reporting entities’ climate-related risks and opportunities facilitates confident and informed decision making by investors.
As new climate related financial reporting obligations are rolled out, reporting entities will need to ensure they have appropriate governance and reporting processes in place to provide greater transparency to Australians and investors about their climate-related risks and opportunities. ASIC will provide support through guidance.
ASIC will also continue to scrutinise disclosures where entities mispresent financial products or investment strategies as environmentally friendly, sustainable or ethical when they are not.
Poor audit quality resulting in declining market confidence and misinformed investment decisions
There are around 29,000 entities that require audits in Australia, including approximately 2,000 listed entities. The reliability and quality of audit reports is vital to market integrity and confidence.
In 2025, ASIC has particular concern about auditor independence and conflicts of interest and will be scrutinising firms’ compliance with the relevant legislative requirements.
Banks and lenders exacerbating consumer financial hardship
Banks and lenders’ financial hardship practices have been clearly shown to be wanting, with many Australians finding it hard to get help, even amidst current cost of living pressures.
ASIC is monitoring to ensure that banks and lenders, particularly those who have agreed improvement plans with us, improve the way they support customers experiencing financial hardship.
For more information about ASIC’s work, see the ASIC Corporate Plan 2024-25.