ASIC puts markets on notice about ASX trading service misuse
On 28 August 2025, ASIC, as part of its Market Integrity Update, released a warning to market participants against the misuse of ASX’s Unintentional Crossing Prevention (UCP) service, upon recent observation of its improper use.
The UCP is an optional ASX trading feature which market participants can use to prevent wash trading on ASX Trade and ASX24 platforms. The UCP is not be relied upon for deliberate trading strategies of placing overlapping orders. ASIC considers such use to be improper and may give rise to breaches of market integrity rules and market manipulation provisions.
ASIC urges that market participants should not solely rely on the UCP as a mechanism to prevent wash trades and must have in place the necessary controls to ensure that trading messages do not interfere with the efficiency and integrity of the market, including:
pre-trade filters for automated order processing that prevent orders which may self-execute from entering the market, post-trade alerts that detect wash trades, and
*qualified and experienced personnel to conduct pre-trade and post-trade reviews to identify unusual activity.
The ASX is currently updating its guidance and information regarding the UCP’s functionality across trading phases. ASIC will continue to monitor markets for misuse of the UCP or other trading services and will take action where appropriate.
ASIC extends hardship withdrawals for frozen schemes
On 27 August 2025, ASIC announced the extension of ASIC Corporations (Hardship Withdrawals Relief) Instrument 2020/778 (Instrument) for a further 18 months. The Instrument was due to sunset on 28 August 2025.
The Instrument permits the facilitation of withdrawals from schemes where a responsible entity has suspended withdrawals and ceased to allow the issue of new interests in the scheme for members facing financial hardship during the COVID-19 pandemic. The Instrument allows responsible entities to grant hardship withdrawals to members if the member meets at least one of the hardship criteria including urgent financial hardship, unemployment, compassionate grounds and permanent incapacity.
The extension is to allow ASIC to further consider and consult with key stakeholders on the effectiveness of the Instrument. As a result, ASIC has decided to extend the relief until 28 February 2027.
APRA consults on minor updates to prudential and reporting framework
On 25 August 2025, APRA launched a consultation regarding proposed minor amendments to its prudential and reporting standards applicable to authorised deposit-taking institutions (ADIs), insurers, and superannuation licensees.
The proposed changes are minor in nature and do not involve any material change to requirements. Key aspects of the proposed updates include:
Feedback is due to APRA by 22 September 2025. The finalised amendments are expected to come into effect from 1 January 2026.
See: Media Release; Consultation Letter
RBA releases discussion paper on AI-powered tool for central bank business liaisons
On 28 August 2025, the RBA released a discussion paper introducing its new AI tool to enable more nuanced analysis of economic conditions. The RBA’s liaison program plays an important role in informing monetary policy decisions. The relevant insights traditionally come from intelligence gathered over an extensive period and complement other statistics and data used to inform the RBA’s assessment of economic conditions.
The AI powered tool can:
The RBA consider these capabilities to be pivotal in assessing economic conditions, significantly improving the performance of nowcasts.
RBA releases Payments System Board Update for August 2025
On 28 August 2025, the RBA released its notes from its recent Payment Systems Board Update. Key issues discussed include:
Government releases issue papers ahead of Economic Reform Roundtable
On 7 August 2025, Treasury published three issues papers in advance of the Economic Reform Roundtable, which took place from 19 to 21 August. The Roundtable was convened to build consensus around key economic reforms, with the issues papers providing a factual basis for discussion.
The papers address the three central themes of the Roundtable: economic resilience, productivity, and budget sustainability and tax reform. Each paper defines the relevant issues, highlights recent trends, and outlines the major challenges and opportunities facing the Australian economy.
The issues papers are intended to facilitate focused discussion at the Roundtable by clearly setting out the problems, allowing participants to concentrate on developing specific reform ideas.
At this stage, Treasury has not yet provided an update on the outcomes of the Roundtable.
See: Media Release; Economic Reform Roundtable – Economic Resilience; Economic Reform Roundtable – Productivity; Economic Reform Roundtable – Budget Sustainability and Tax Reform
AFCA releases updated Financial Difficulty External Dispute Resolution Response Guide
On 14 August 2025, AFCA published an updated Financial Difficulty External Dispute Resolution (EDR) Response Guide (Guide). The revised Guide clarifies expectations for financial firms handling financial hardship complaints, with a focus on clearer documentation, timely and appropriate responses to hardship notices, and stronger demonstration of compliance with the National Credit Code, industry codes, and AFCA’s fairness principles.
The Guide details the types of assistance that can be requested, such as loan term extensions, payment deferrals, or temporary payment reductions. It also explains AFCA’s process for handling complaints, including negotiation, conciliation, and assessment of whether financial firms have responded appropriately and in line with the National Credit Code and industry standards.
In the addition, the updated guidance addresses customer vulnerability and outlines required supporting information to ensure responses are thorough and transparent. These updates aim to support fairer outcomes and more efficient complaint resolution.
On 21 August 2025, APRA released its 2025-26 Corporate Plan, which is focused on safeguarding the stability and security of banks, insurers, superannuation trustees, and the wider financial system. The plan sets out APRA’s strategic direction for the next four years, alongside its policy, supervisory, and data priorities for the forthcoming 12 to 18 months.
The 2025-26 Corporate Plan is structured around four principal strategic objectives: upholding financial and operational resilience; addressing significant and emerging risks; achieving an appropriate regulatory balance; and enhancing APRA’s organisational effectiveness.
Key strategic priorities identified in the plan include:
APRA’s strategic initiatives highlight its commitment to maintaining a robust, transparent and contemporary prudential framework, ensuring the continued stability and resilience of Australia’s financial system.
See: Media Release; APRA Corporate Plan 2025-26
ASIC releases enforcement and regulatory update
On 28 August 2025, ASIC released its enforcement and regulatory update for January to June 2025 (REP 812). Key focuses of REP 812 are as follows:
