ASIC cracking down in 2026

ASIC has outlined its focus areas for 2026, with a spotlight on financial advice and a surge in insider trading enforcement after recent legal actions. According to ASIC chair Joe Longo, pressures are mounting on consumers, markets, and businesses, while artificial intelligence is reshaping financial services.

One of the key priorities for ASIC in 2026 is addressing retail exposure to private market products and the use of aggressive sales tactics. Longo emphasized the importance of these issues in maintaining trust, integrity, and confidence in Australia’s financial system. This focus may have been influenced by ongoing court cases involving Shield and First Guardian, where consumers risk losing their retirement savings to high-risk investments.

Some concerns arise from the marketing strategies and advice models driving consumers towards unsuitable high-risk products like certain managed investment schemes. ASIC is collaborating with government and consumer groups to close legal loopholes, enhance regulations, and educate Australians on identifying risks to their retirement savings. Advertisements and lead-generation tactics have also contributed to the push towards complex investment products that may not be suitable for all consumers.

Another critical area of focus for ASIC is the increased exposure of retail clients to private credit markets. The surveillance conducted by ASIC last year highlighted concerns regarding the role of advisers and research houses in distributing these complex products to retail investors. The expansion of retail access to private credit and other private market offerings, with low investment thresholds, poses risks of mis-selling and inadequate disclosure. Private markets lack transparency, and Australia’s regulatory reporting outside of superannuation is limited, resulting in challenges for supervision and heightened risks for investors.

Additional priorities for ASIC in 2026 include addressing operational failures by superannuation trustees that harm members, consumer risks associated with AI technologies, cyberattacks, data breaches, and substandard financial reporting. These focus areas underscore ASIC’s commitment to protecting consumers, maintaining market integrity, and upholding confidence in Australia’s financial sector.

In conclusion, ASIC’s regulatory priorities for 2026 underscore the evolving landscape of financial services, the challenges faced by consumers, and the need for proactive regulatory measures to safeguard the interests of all stakeholders. As the financial industry continues to transform, ASIC remains vigilant in addressing emerging risks, promoting transparency, and enhancing consumer protection.