ASIC Key Issues Outlook for 2026

Pressures on consumers, businesses and markets are intensifying globally. In response, ASIC is tracking major shifts across Australia’s financial system. 

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To help focus regulatory and industry attention, ASIC released the Key Issues Outlook for 2026, showing: 

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• Where risks are likely to emerge.
• Areas where ASIC will focus its attention to protect integrity and trust in the financial system. 

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Here are ASIC’s key areas of focus for 2026:

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ASIC Key Issues for 2026

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1. Increased retail client exposure to private credit markets.

As retail access to private credit and other private market products expands and investment platforms enable participation in less transparent products, the risk of mis-selling, incompatible product selection and decision-making with inadequate disclosure is rising. As we approach the midpoint of 2026, we definitely observe that ASIC’s sights are firmly on private credit strategies, and not just private credit funds offered to retail clients. Wholesale-only funds are also in ASIC’s crosshairs.

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2. Consumers losing retirement savings through investments in high-risk products, including as a result of high-pressure sales tactics and inappropriate financial advice.

Tactics like aggressive marketing and stereotyped advice models are driving investors to switch superannuation into complex, high-risk and generally ill-suited investments, pointing to legal and regulatory gaps. As the fallout from Shield and First Guardian continues, we observe ASIC’s heightened enforcement activities in relation to financial advisers that fall short of regulatory expectations. 

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3. Advanced technology harming consumers (including agentic AI).

Automated decisions and AI-fueled interactions and the technological amplification of scams are elevating risks for consumers. 

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4. Operational failures by superannuation fund trustees resulting in member harm.

Member services problems are a key issue, including: 

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• Delays in processing claims.
• Inadequate customer support and services.
• Inadequate IT infrastructure and cyber resilience mechanisms. 
• Escalating fraud and scam risks.

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5. Cyber-attacks, data breaches and/or inadequate operational resilience and crisis management undermine market confidence and harm consumers.

Digitisation, evolving threat actor capabilities, legacy infrastructure and reliance on third parties are contributing to increased cyber risks. 

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6. Regulatory gaps related to emerging financial-sector participants (digital assets, payments, AI users) and others on the regulatory perimeter.

Rapid innovation, particularly in fintechs and digital assets, can lead to the exploitation of unclear regulatory boundaries. 

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7. Poor insurance claims handling, particularly following extreme weather events.

There are emerging concerns over claims-handling failures following concurrent and severe weather events, underscoring the need for sector accountability. 

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8. Failure or significant outage resulting from the implementation of the CHESS replacement or from the ongoing use of the aging infrastructure of the current system.

A phased replacement is underway this year; however, delays or failures pose a serious risk to market stability, operational resilience and investor confidence.

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9. Poor quality financial reporting, sustainability reporting and audit quality.

This includes inconsistent investor disclosures, limited transparency on expenses and inadequate audit evidence on valuations. 

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10. Increased risk appetite in the banking sector in response to competitive pressures that result in consumer harm.

Historic low net margins may drive an uptick in riskier strategies that could lead to unfair investor losses and consumer harm. 

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Stay Ahead of ASIC’s Key Issues in 2026

To ensure your managed funds business stays ahead of the curve amid increasing scrutiny from ASIC, seek comprehensive financial services legal advice from the experts at PMC Legal. 

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