PFA Regulatory Update November 2025
ASIC to release public and private markets roadmap
Following the release of ASIC report 814 on Private Credit in Australia, ASIC has just released its roadmap for the regulation of public and private markets.
PFA’s Issues & Regulatory Committee will review the report and provide an update in due course.
Review of offshore outsourcing by responsible entities
ASIC has reviewed how responsible entities (REs) engage with offshore service providers (OSPs) and manage associated risks.
ASIC focussed on whether risk management systems were adequate, with appropriate frameworks for the oversight and monitoring of OSPs, particularly regarding cyber security and resilience.
ASIC said:
REs, as Australian financial services (AFS) licensees, retain ultimate responsibility under the Corporations Act 2001 (Corporations Act) for the operation of their funds and should have sufficient skills to independently identify material risks and to assess an OSP’s performance and ongoing suitability.
The quality of the risk management arrangements in relation to the use of OSPs varied across the REs we reviewed, with improvements in different areas required for each of the REs.
ASIC enforcement activity
ASIC has recently taken enforcement action:
ASIC has commenced civil penalty proceedings in the Federal Court against Equity Trustees Superannuation Limited, regarding alleged due diligence failures for the Shield Master Fund.
ASIC has made interim stop orders on the product disclosure statements (PDSs) for two classes of units of the TruePillars Investment (Fund), a registered managed fund promoted by T.P.R.E. Ltd for alleged defective disclosure.
ASIC launched civil proceedings against Fiducian Investment Management Services Limited for alleged misleading and deceptive conduct relating to its ESG fund.
ASIC made interim stop orders on the 12 month terms account and two year account products offered under the La Trobe Australian Credit Fund due to issues with the Target Market Determination for both products. The stop order on these products was subsequently lifted.
ASIC sues Mercer Super for failing to comply with reportable situations regime
ASIC alleges that Mercer Super had inadequate systems to comply with the reportable situations regime, which included a failure to tell ASIC about investigations into serious member services issues, in a proceeding before the Federal Court.
ASIC alleges the systemic failures included inadequate reporting of:
insurance premiums not being refunded correctly after members had died
member accounts not being created with default insurance, and
updates to member information not being processed by the trustee.
ASIC also alleges Mercer Super provided “false or misleading information” in reports, which understated the number of members impacted.
Inadequate management of cybersecurity risks in spotlight as ASIC sues
ASIC is suing financial advice business, Fortnum Private Wealth, with the regulator alleging it failed to “properly manage and mitigate cybersecurity risks”.
The regulator said Fortnum “failed to have adequate policies, frameworks, systems and controls in place to deal with cybersecurity risks”.
While the business had introduced a cybersecurity policy in 2021, ASIC said the policy was an inappropriate response to managing cybersecurity risk.
Fortnum had revised its policy in May 2023, but not before a major breach from a cyber-attack, which saw 9,000 clients have their data published on the dark web.
ASIC alleges Fortnum did not:
require that its ARs undertake a prescribed minimum amount of cybersecurity education or training,
adequately supervise or monitor the cybersecurity risk management framework of its ARs,
have any employees with specialised expertise or experience in cybersecurity or engage a consultant with appropriate expertise to assist with the development of its cybersecurity policy, and
have a risk management system which addressed cybersecurity or policies, frameworks, systems or controls which enabled the identification and evaluation of cybersecurity risks across its ARs.
ASIC concerns over PI insurance
ASIC has said a lack of transparency around professional indemnity (PI) insurance cover for licensees is an area of concern. The regulator mentioned it had conducted a PI market scan in late 2024/early 2025 in a recent financial update.
While there had been significant improvements in the PI market at this time, according to ASIC, several issues and concerns were identified for AFS licensees.
ASIC said: “One consistent theme was a lack of transparency around what cover advice licensees hold and the claims they make. Another concern was the time it takes to finalise claims.”
ASIC is “considering ways in which these issues and concerns may be addressed”.
Change to PDS regulatory guide on the way
ASIC has taken feedback regarding proposed changes to Regulatory Guide 168 Disclosure: Product Disclosure Statements (and other disclosure obligations).
ASIC said: “This is part of our commitment to reducing regulatory complexity, enhancing clarity and improving accessibility for all stakeholders.”
Proposed updates to RG 168 include:
incorporating guidance on PDS disclosure, lodgement and notification obligations from other RGs and information sheets into RG 168
withdrawing information sheets and RGs containing other PDS disclosure, lodgement and notification guidance proposed to be incorporated into the updated RG 168
removing guidance in RG 168 relating to Financial Services Guides and Statements of Advice
reframing the existing guidance on misleading and deceptive conduct in RG 168 to highlight examples of general disclosure concerns with PDSs, and
clarifying the legislative basis for the Good Disclosure Principles in RG 168.
An updated draft of RG 168 is available here.
Any questions for the Issues and Regulatory Committee?
The PFA Issues and Regulatory Committee (IRC) is available to answer any PFA member questions.
The IRC meets with ASIC regularly – please contact the IRC if you have a question or an issue you would like to see raised with the regulator. Please email any IRC correspondence to pfa@propertyfunds.org.au