AI Governance

The FCA's September 2026 list of non-legal corrections and clarifications updates several Handbook provisions, most notably formalizing detailed record-keeping and notification requirements for the motor finance commission consumer redress schemes (CONRED) and updating DISP compensation limits. While described as having no legal effect or policy change, firms involved in motor finance redress must note the extensive new tabular record-keeping and reporting obligations now embedded in CONRED Sch 1 and Sch 2.

ASIC's Report 571 details the regulator's efforts to assist, engage with, and protect small businesses under its 2017–2020 strategy, including registry modernization, financial capability resources, and enforcement against illegal phoenix activity. For compliance teams at financial institutions, this report signals ASIC's continued regulatory focus on small business lending practices, unfair contract terms, and corporate governance, with implications for how lenders structure small business loan contracts and monitor for phoenix activity.

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 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 has confirmed that its sector-wide no-action position for digital asset businesses expires on 30 September 2026, after which unlicensed firms risk civil and criminal penalties, including fines of up to 10% of annual turnover. Compliance teams at digital asset-related firms must urgently assess licensing status and submit AFS, Australian Market Licence, or CS facility licence applications before the deadline to avoid enforcement action.

ASIC successfully prosecuted CashnGo for embedding unfair contract terms in over 201,000 small amount credit contracts, resulting in a AUD $3.5 Million penalty and multiple contract terms being declared void. The case underscores ASIC's intensified scrutiny of the SACC sector and signals heightened enforcement risk for lenders using automated debt collection practices that strip consumers of control over their finances.

ASIC and APRA have published notes from joint roundtables held with superannuation fund CEOs in June 2026, covering frontier AI adoption, cyber and operational resilience, and crisis preparedness. While non-binding, these notes signal clear supervisory focus areas that superannuation trustees should expect to inform future guidance, surveillance, and enforcement priorities.