Australian Regulator Emphasizes Simplicity & Accountability in Complex Times

Key Takeaways

• ASIC Corporate Plan: Commissioner Simone Constant said the 2025–26 plan sets five strategic priorities, including consumer outcomes, retirement savings, capital markets transparency, and digital resilience.
• Superannuation Oversight: With $4.3 trillion in assets, Constant warned that “bigger has not necessarily meant better,” citing enforcement actions and a need for improved claims handling and retirement services.
• Capital Markets Focus: ASIC is responding to a decline in public listings and rapid private market growth, with a November report to highlight practices, and weaknesses, in the $200 billion private credit sector.
• ASX Inquiry: An unprecedented inquiry into the ASX is underway, reflecting serious concerns over its ability to maintain critical infrastructure; findings are expected before March 2026.
• Compliance Principles: Constant advised firms to keep compliance simple by asking: “Am I being transparent? Am I being accountable? And am I consistently doing what I said I would do?”

Deep Dive

At FINSIA’s The Regulators event in Sydney on 12 September, Australian Securities and Investments Commission (ASIC) Commissioner Simone Constant discussed the importance of simplicity in compliance during uncertain times.

“Any time you talk about the operating landscape, it’s likely to be punctuated with the words: ‘uncertainty’ and ‘risk’,” Constant observed. Having spent her career in financial services and risk management, she acknowledged the “huge weight of responsibility that comes with having to meet continuously rising expectations – including from regulators.”

Her advice to industry was straightforward, “Compliance can come down to three basic principles, even in a changing world: transparency, accountability, and consistency. If you follow those principles, you’re well on your way to meeting the expectations of your stakeholders – including us.”

Superannuation in the Spotlight

Constant dedicated much of her remarks to superannuation, highlighting both its growth and its shortcomings. Australia, she noted, is “on track to soon have the world’s second largest pool of retirement savings” despite being only the 55th largest country by population.

But size alone does not equate to quality.

“Bigger has not necessarily meant better when it comes to the way superannuation trustees treat their members, or customers,” she said. Over the past year, ASIC has pursued enforcement action against funds, issued a report with 34 recommendations on death benefit claims, and commenced civil proceedings against Equity Trustees.

She stressed the importance of data-driven oversight, “Complaints data is a valuable tool to identify and address systemic underperformance – we expect you to use it.” With more than 100,000 Australians retiring each year, she made it clear that “super funds need to do better.”

Capital Markets and the Shifting Landscape

Turning to capital markets, Constant reflected on Australia’s deep investor base. “More than half of us hold investments outside our home and super,” she said, framing the regulator’s role as ensuring confidence and informed participation.

Yet the market is shifting. Public listings have slowed, while private markets have surged, with assets under management growing more than 160% in the past decade. Constant pointed to ASIC’s recent consultation, which drew nearly 100 submissions, as a sign of industry engagement.

One clear message, she said, is that “public and private markets should complement, not cannibalize each other.” ASIC has already taken steps to ease IPO processes and streamline foreign listings. A forthcoming surveillance report on the $200 billion private credit sector, due in November, will “tell us that practices in the private credit funds management sector vary. They’re not consistent. There are some good practices, but some areas for serious improvement.”

Inquiry into ASX

Constant also addressed ASIC’s inquiry into the ASX, initiated in June in response to concerns about its critical market infrastructure. “

Initiating an inquiry was an unprecedented step for ASIC, but one that was entirely commensurate with the serious failures we were seeing,” she said. The inquiry, led by an expert panel, is set to deliver findings before March 2026 and will play a key role in “strengthen[ing] digital and data resilience across our markets.”

While the challenges facing markets and regulators may appear complex, Constant reminded her audience not to overcomplicate compliance, “When you look at your regulatory requirements, I encourage you to ask yourself three simple questions: Am I being transparent? Am I being accountable? And am I consistently doing what I said I would do?”

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