MIU - Issue 168 - June 2025
This Market Integrity Update contains the following articles
ASIC launches Inquiry into ASX
On 16 June, ASIC announced an Inquiry into Australian Securities Exchange (ASX) group, focusing on governance, capability and risk management frameworks and practices across the group.
ASX plays a critical role in Australia’s financial markets. ASIC and the Reserve Bank of Australia (RBA) have ongoing concerns about ASX’s ability to maintain stable, secure and resilient critical market infrastructure.
ASIC’s Inquiry will be led by an expert panel who will make recommendations to address any identified shortcomings or deficiencies.
Rob Whitfield has been appointed Chair of the Inquiry panel and Christine Holman and Guy Debelle as panel members.
Together, the panel will examine the frameworks and practices within ASX group and make recommendations to address any identified shortcomings or deficiencies in relation to governance, capability, and risk management.
ASIC will publish a report of the outcome of the Inquiry, which will inform the next steps it may take.
ASIC Chair Joe Longo said, ‘ASX operates Australia’s critical markets infrastructure. Investors and market participants deserve to have absolute confidence that ASX is operating soundly, securely and effectively.’
ASIC will discontinue its investigation of the 20 December 2024 CHESS Batch Settlement failure. Consideration of this incident will form part of the broader Inquiry.
Full details can be found in the Inquiry’s Terms of Reference.
Read the media release announcing the ASX Inquiry.
Read the media release announcing the Inquiry’s appointed panel members.
ASIC’s fast-track IPO trial: What you need to know
Entities listing on the ASX via the fast-track process now have access to a shorter initial public offering (IPO) timetable, reducing deal execution risk as part of a two-year trial announced on 10 June 2025.
During the trial, ASIC will informally review eligible IPO offer documents two weeks prior to public lodgement, which could reduce the IPO timetable by up to a week.
The new approach is the first in a series of regulatory changes ASIC is considering to enhance and improve the attractiveness of Australia’s public markets.
ASIC Chair Joe Longo said the initiatives had been developed in response to the decline in Australian IPOs and public companies, highlighted in ASIC’s recent discussion paper on the evolving dynamics between public and private markets, and form part of the agency’s regulatory simplification focus.
For interested parties, ASX Fast-track is available to Eligible Entities that will have a market capitalisation greater than $100 million upon listing and no ASX imposed escrow.
Eligible Entities can provide a pathfinder prospectus or pathfinder PDS to prelodgement@asic.gov.au on a confidential basis, at least 14 days prior to formal lodgement for review. This pathfinder should be in near final form of the document expected to be lodged.
ASIC will endeavour to complete its review in the 14-day period prior to lodgement.
ASIC will generally not need to extend the 7-day exposure period to 14 days after lodgement unless material new information comes to light or is included in the lodged prospectus or PDS.
The future of Australia’s public and private markets: Industry feedback and next steps
ASIC has released 69 of the 92 submissions it received and the names of 14 respondents who made confidential submissions in response to our discussion paper on the evolving dynamics between public and private markets.
The paper, released in February 2025, examined the health and future of Australia’s markets, including the growth in private markets, the recent decline in public listings, and the growing significance of superannuation funds.
The response to our approach in the discussion paper has been overwhelmingly positive and constructive, and the submissions reflect the views of industry bodies, market operators, superannuation trustees, fund managers, banks and other stakeholders across the finance sector.
ASIC has distilled the feedback into themes, which are shaping further work and thinking, including learning from international experience. These include:
- Structural and cyclical factors are shaping both public and private markets
- Public market adjustments would improve and enhance their attractiveness
- Private markets are here to stay and grow, there is an acknowledgement of the need for any regulatory guidance to be measured, working closely with industry and aligning to international standards
- Private credit is good for the economy and investors, if done well. There may be work to do to ensure it is sustainably done well
- Superannuation is a mature investment force in Australia and a significant and structural influence in markets and investment
- More to do on data collection and transparency of private markets including in dimensioning the market itself and learning from international practices.
ASIC Chair Joe Longo said, ‘We look forward to announcing the adoption of some of the proposed actionable ideas and will share our roadmaps for public and private markets in Q3 and Q4, respectively, this year.’
Listen to the Inside ASIC podcast episode on Public and Private Markets where our guest speakers discuss the changes we are witnessing in private and public markets, why it matters, and what ASIC’s role is in deals done behind closed doors.
EOFY ‘window dressing’: Look out for unusual trading
As we reach the end of financial year (EOFY), we remind market participants to be on the lookout for any unusual trading that may affect the price of shares or other assets and EOFY performance figures. This activity is known as ‘window dressing’.
Window dressing is a form of market manipulation by parties who have a financial incentive to influence the price or shares or other assets around key reporting dates.
These parties include directors, large shareholders and fund managers who periodically report to clients about investment performance.
We encourage you to take active steps to identify possible misconduct through system controls and pre-trade filters, as well as through post-trade reviews of any abnormal trading behaviour.
You must notify ASIC if you suspect or identify window dressing. You can do this through the ASIC Regulatory Portal or by emailing markets@asic.gov.au.
Please see Report suspicious activity for further detail.
ASIC will also continue to monitor unusual price movements that may indicate market manipulation. If we identify any trading that we believe should have been reported to ASIC, but wasn’t, we’ll contact you for an explanation.
For more information about suspicious activity reports, please see:
- Regulatory Guide 265 Guidance on ASIC market integrity rules for participants of securities markets (RG 265), and
- Regulatory Guide 266 Guidance on ASIC market integrity rules for participants of futures markets (RG 266) for more information.
Protect your business and clients against share sale fraud
Following a spike in reports of stolen shares due to identity theft in 2024 and an industry review, ASIC has updated guidance for Australian financial services (AFS) licensees about how they can protect their clients and businesses from share sale fraud.
Share sale fraud refers to the fraudulent activity of a person who is not who they claim to be, selling shares that do not belong to them.
It can have devastating financial and emotional impacts on the lives of people who fall victim.
AFS licensees have a critical role in preventing and detecting share sale fraud, both individually and collectively.
In the last four years, ASIC analysis has identified a seven-fold increase in the number of share sale fraud reports made by market intermediaries.
We’re calling on market intermediaries to step up and protect their customers by strengthening their share sale fraud prevention, detection and response practices.
The updated Information Sheet 237 Protecting against share sale fraud (INFO 237) includes observations on share sale fraud methods by bad actors and good practices to help licensees prevent and detect share sale fraud.
ASIC have also released a fictitious case study which highlights the importance of adequate prevention and detective controls for both businesses and clients.
- ASIC’s Report 761 on scam prevention, detection and response
- ASIC’s Report 790 on Anti-scam practices, and
- the use of digital ID services accredited under the Digital ID Act 2024 to safely and securely verify people’s identity online. For more information, see https://www.digitalidsystem.gov.au/.
Global crack down on unlawful finfluencers
ASIC has issued warning letters to 18 social media ‘finfluencers’ suspected of unlawfully promoting high-risk financial products and providing unlicensed financial advice to Australians as part of a Global Week of Action Against Unlawful Finfluencers in early June.
Together, regulators from the United Kingdom, United Arab Emirates, Italy, Hong Kong and Canada used a combination of regulatory and enforcement powers to put unauthorised finfluencers on notice and warn consumers of the risks of unauthorised or misleading finfluencer content.
This included arrests, warning notices, website takedowns, educational schemes with authorised finfluencers and consumer awareness programs.
Following the issuance of INFO Sheet 269 Discussing financial products and services online (INFO 269) in 2022, ASIC has observed a noticeable drop in social media posts spruiking financial products and services by unauthorised finfluencers.
ASIC’s current concerns lie with finfluencers positioning themselves as so-called trading experts, who are providing unauthorised financial product advice and promoting high-risk, complex investment products, such as contracts for difference (CFDs) and or other derivative products.
Their social media content is often accompanied by misleading or deceptive representations about the prospects of success from the products or trading strategies they promote, sharing images of lavish lifestyles, sportscars and other luxury goods.
Unlicensed activity can be reported to ASIC on our How to report misconduct webpage or by calling 1300 300 630 so that we can consider appropriate regulatory action.
Listen to Series 2 of the Inside ASIC podcast
In Inside ASIC we pull back the curtain on the work ASIC is doing on everything from public and private markets, to scams and financial hardship, insider trading, audit surveillance and regulating AI.
Each episode of the podcast will dive into a different area of our work as told by our people and external guests.
- Episode 1: Not so super asks whether superannuation members are being let down by their fund and trustee.
- Episode 2: Public and Private Markets is all about understanding private and public markets, and why these developments matter.
- Episode 3: Cleaning greenwashing investigates why ASIC is taking greenwashing seriously.
- Episode 4: ASIC for First Nation people explores some of the work being driven by the specialist Indigenous Outreach Program team within ASIC.
- Episode 5: Natural disasters investigates some of the big issues with insurance following devastating natural disasters in Australia.
Listen now on Spotify, Apple Podcasts or via RSS feed.
Alternatively, you can listen-in via the ASIC website.
Recent enforcement actions
In June, we announced the following enforcement outcomes:
ASIC secures guilty pleas in Telegram ‘pump and dump’ action
On 10 June 2025, four people involved in a coordinated scheme to pump up Australian share prices before dumping them at inflated prices pleaded guilty to multiple criminal charges.
Larissa Quinlan, Kurt Stuart, Emma Summer and Syed Yusuf pleaded guilty in the Downing Centre Local Court to conspiracy to commit market rigging and dealing with the proceeds of crime.
Ms Quinlan, Mr Stuart and Ms Summer participated in the conspiracy to commit market rigging between about 28 August 2021 and about 22 September 2021, and Mr Yusuf participated between about 17 September 2021 and about 22 September 2021. They face a maximum penalty for the conspiracy offence of 15 years’ imprisonment and a fine of over $1 million.
ASIC cancels AFS licence of Spectre Financial Group for competency failures
ASIC has cancelled the Australian Financial Services (AFS) licence of Spectre Financial Group Australia Pty Ltd (Spectre), which had been suspended since May 2024.
ASIC cancelled the AFS licence because it found Spectre had failed to maintain the organisational competence to provide the financial services covered by its licence.
This included failure by Spectre to appoint sufficient responsible managers with the appropriate knowledge and skills to provide general financial product advice and deal in derivatives and foreign exchange contracts.