GRC Report Staff

ASIC's Report 331 and Consultation Paper 202 examine dark liquidity and high-frequency trading in Australian equity markets, finding no systemic market abuse but identifying areas requiring new rules around dark pool transparency, conflicts of interest, and order size thresholds. Compliance teams at market participants and brokers operating crossing systems must prepare for new disclosure, monitoring, and transparency obligations commencing from May 2013.

Alexander McCulloch, a former project manager at Beacon Minerals, was sentenced to 12 months' imprisonment (released on a $5,000 recognizance) after pleading guilty to insider trading under the Corporations Act 2001. The case underscores ASIC's continued enforcement focus on market abuse by insiders with access to material non-public information and highlights the personal and reputational risks for employees who misuse confidential corporate data.

ASIC's latest misconduct data shows retail investor issues, governance failures, and scams—particularly sophisticated pump-and-dump schemes using fake celebrity endorsements—dominating public reports in H1 2026. With a record AUD $830 Million in civil penalties secured in 2025-26, the data underscores ASIC's growing reliance on public tip-offs to drive enforcement priorities, making robust internal reporting and scam-detection controls critical for regulated entities.

ASIC has issued a AUD $19,800 infringement notice to Tetra Servicing Pty Ltd (formerly Telstra Super) for publishing a misleading time horizon representation about its Property Option investment product. The discrepancy between the website's stated 7-year time horizon and the actual 10-year horizon used internally and disclosed in the Investment Guide constitutes a breach of s12DB(1)(e) of the ASIC Act, highlighting the regulator's continued scrutiny of superannuation trustees' marketing and disclosure accuracy.

ASIC's latest misconduct report data shows 9,807 reports received between January and June 2026, with steady overall volumes but a notable 14% increase in reports held for intelligence purposes and a continued rise in "out of jurisdiction" reports. Compliance teams, particularly those in financial services, corporate governance, and insolvency practice areas, should note the persistent prominence of unlicensed financial services, governance failures, and liquidator-related reporting failures as key themes driving regulatory attention.

ASIC and APRA have jointly opened consultation on proposed amendments to simplify FAR reporting obligations, including removing key functions requirements and direct report disclosures from accountability maps. Compliance teams at banks, superannuation funds, and insurers should review the proposals now, as changes are expected to be finalized by end of 2026 and take effect in early 2027.

ASIC secured a criminal conviction against Kristian Convery, a permanently disqualified SMSF auditor who continued to perform audits and falsified 47 audit reports using another auditor's credentials without consent. The case demonstrates ASIC's willingness to pursue criminal prosecution—not just civil penalties—against individuals who breach disqualification orders, underscoring the importance of robust auditor verification controls for firms engaging SMSF audit services.