Risk Radar: ASIC‘s Top 10 Key Issues for 2025
ASIC has outlined its most significant issues for 2025. They cover all sectors regulated by ASIC but could impact the financial system in particular.
Public vs Private Markets: Major shifts in market dynamics toward private markets (such as private credit) are prompting ASIC to reassess regulatory frameworks. ASIC will be reviewing governance processes and practices of retail private credit funds.
Superannuation Member Services: Superannuation member complaints about service have doubled between 2021-2023, signalling a need for improved trustee services. ASIC will publish the findings of its review of member services and take enforcement action if necessary.
Technology-Driven Financial Crime: Scammers are becoming increasingly sophisticated, particularly in cryptocurrency and celebrity impersonation schemes. ASIC has already taken down more than 7,300 phishing sites. It will continue to support the National Anti-Scam Centre and share scam intelligence.
Unsuitable Superannuation Advice: A surge in high-risk investment flows through super platforms has been observed by ASIC, driven by aggressive sales tactics and social media targeting of retirees. ASIC will take enforcement action where it sees misconduct exploiting superannuation savings. It is also conducting surveillance to assess the quality of advice to set up SMSFs.
Cybersecurity: With financial sector digitalisation accelerating, robust cyber resilience is crucial. ASIC is actively investigating breaches. In 2025 it plans to provide more details on how it will enforce the law against persons who have failed in their risk management duties.
Natural Disaster Insurance Responses: ASIC has called for better claims handling services following natural disasters. ASIC will focus on delays in assessment, decisions and repairs, poor communication with affected customers and settlement arrangements falling short of customer and community needs.
ASX CHESS Replacement: The transition to a new clearing and settlement system for the ASX is fundamental for market confidence and the financial system. ASIC and the RBA will continue their focus on ASX resilience, reliability and integrity throughout this critical infrastructure upgrade.
Climate-Related Financial Reporting: New obligations require entities to provide transparent, high-quality disclosures about climate risks and opportunities. ASIC will provide guidance and continue to monitor greenwashing.
Audit Quality Standards: ASIC is concerned about auditor independence and conflicts of interest and will be looking at compliance with legislative requirements.
Financial Hardship Support: ASIC has found that financial hardship practices of lenders are deficient and it will be monitoring them for improvements.
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