ASIC Secures $579 Million in Civil Penalties as Annual Report Details Major Enforcement Cases

Key Takeaways

• Civil Penalties Reached $579 Million: ASIC secured court orders imposing approximately $579 million (A$830 million) in civil penalties during 2025–26 and helped secure more than $405 million (A$580 million) in consumer and investor repayments and refunds.
• Major Cases Accounted for Much of the Total: Combined penalties against ANZ reached approximately $174 million (A$250 million), while Union Standard International Group and two former corporate authorized representatives received a record penalty of approximately $209 million (A$300.2 million).
• Consumer Remediation Produced Substantial Results: Banks committed more than $112 million (A$160 million) in refunds, while approximately 4,000 consumers received around $294 million (A$421 million) following undertakings associated with the Shield and First Guardian collapses.
• Executive Accountability and Market Oversight Remained Priorities: ASIC pursued proceedings against 11 former Star Entertainment executives and directors, examined ASX Group's governance and risk management, and established clearer expectations for private credit funds.
• Cybersecurity and Fraud Drew Regulatory Action: ASIC removed more than 19,400 scam and phishing websites and associated social media advertisements while taking action against market participants with inadequate cybersecurity protections.

Deep Dive

Australia's corporate regulator secured approximately $579 million (A$830 million) in court-ordered civil penalties during the 2025–26 financial year, with major cases involving ANZ and derivatives trading misconduct accounting for much of the total. The Australian Securities and Investments Commission (ASIC) also helped secure more than $405 million (A$580 million) in repayments and refunds for consumers and investors, according to its annual report released October 19.

The regulator commenced 260 formal investigations and 32 civil proceedings involving 65 defendants during the year. It also completed 1,012 surveillances, examining conduct across banking, investment management and financial markets.

ASIC Chair Sarah Court said the results reflected the agency's emphasis on enforcement and obtaining financial redress for consumers.

“Our focus is on addressing misconduct and delivering outcomes for consumers, investors and the market,” Court said. “This year, our work resulted in significant penalties as well as repayments and refunds for consumers and investors.”

Among the largest penalties were combined orders totaling approximately $174 million (A$250 million) against ANZ for widespread misconduct in its retail banking division and separate misconduct involving institutional and markets activities.

ASIC also secured a record court-ordered penalty of approximately $209 million (A$300.2 million) against Union Standard International Group Pty Ltd and two former corporate authorized representatives. The outcome accompanied a broader regulatory effort to address misconduct and secure industry-wide remediation in the contracts for difference sector.

Those two cases accounted for approximately $384 million (A$550.2 million) in penalties, roughly two-thirds of the annual total.

Consumer Refunds and Investment Fund Collapses

ASIC's work on financial hardship and banking fees produced commitments from banks to refund more than $112 million (A$160 million) to customers. More than 810,000 customers also moved to low-fee bank accounts.

The regulator identified improvements in the treatment of customers experiencing financial hardship and those on low incomes as an important part of its consumer protection work. The refund commitments and account transfers provided measurable results beyond penalties imposed through litigation. The collapses of the Shield and First Guardian investment funds were another major focus.

ASIC commenced 15 Federal Court proceedings against 30 defendants in connection with the collapses. Around 4,000 consumers received approximately $294 million (A$421 million) in repayments following court-enforceable undertakings with Macquarie and Netwealth.

The repayments were among the largest consumer outcomes highlighted in the annual report. ASIC did not state in its release that all affected investors had recovered their money, and the reported repayments should not be taken as evidence that the losses associated with the collapses have been fully resolved.

The proceedings also remain distinct from the repayments secured through the undertakings. The regulator's figures describe enforcement activity and consumer redress at different stages, including cases still before the courts.

Directors, Market Infrastructure and Private Credit

ASIC pursued proceedings against 11 former executives and directors of The Star Entertainment Group Ltd as part of its efforts to strengthen accountability among senior corporate officers. The cases placed individual conduct under scrutiny alongside the regulator's enforcement work against financial institutions and other corporate entities.

ASIC also continued examining the governance and operational capabilities of ASX Group through an inquiry into its governance, capability and risk management.

The inquiry concerns an organization responsible for critical Australian financial market infrastructure, where weaknesses in oversight and operational risk management can have consequences for market participants that depend on its services. Private credit received particular attention during the year. ASIC set clearer expectations for funds concerning disclosure, governance, conflicts of interest, valuations, liquidity and credit risk management.

Those areas present substantial oversight challenges for private credit managers, particularly where investments are less liquid and valuations depend on judgments about borrowers and underlying assets. ASIC's work sought to clarify the standards expected of funds operating in the sector.

Cybersecurity and Investment Scams

ASIC reported removing more than 19,400 investment scam and phishing websites, along with associated scam advertisements on social media. The removals were part of the regulator's efforts to disrupt fraudulent investment activity and reduce the exposure of consumers to online scams.

Cybersecurity also featured in its enforcement and supervisory work. ASIC took action against market participants with inadequate cybersecurity protections and called for urgent improvements in risk management as frontier artificial intelligence introduces additional risks.

The regulator's concerns extended to the ability of financial institutions to identify, manage and respond to technological threats. Its annual report placed cybersecurity alongside corporate governance and market infrastructure oversight among the areas requiring continued attention.

The work on AI was described as part of ASIC's response to emerging risks, rather than as a separate enforcement program with its own reported penalty total.

Regulatory Simplification

ASIC also reported changes intended to reduce the administrative burden of dealing with the regulator. The agency removed more than 9,000 pages of legacy website content, updated more than 280 form landing pages and simplified more than 180 pages of regulatory guidance.

More than 97% of forms that previously required paper submission can now be lodged by email. The changes accompanied a year in which ASIC continued to pursue major court proceedings and expand its scrutiny of financial institutions, market operators and investment funds.

Court said the agency intended to maintain that enforcement effort while responding to new risks.

“Our work in protecting consumers, enforcing the law, and ensuring open and transparent financial markets is more important than ever,” she said. “Our results show that we are delivering robust results in protecting Australians and strengthening confidence in the financial system. We intend to build on that momentum, and push for even greater impact, in the year ahead.”

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