MIU - Issue 171 - September 2025
Issue 171 of the Market Integrity Update covers regulatory developments and issues affecting markets in September 2025.
ASIC signals opportunity for uplift in private credit standards
As part of ASIC's latest update on private and public markets, the agency is calling on industry bodies to lift their standards across Australia’s private credit sector following expert observations on better and poorer practices (REP 814).
In response to the rapid growth of private credit, ASIC commissioned a paper: Private Credit in Australia, authored by infrastructure investment executive Richard Timbs and former banker and chief risk officer Nigel Williams.
REP 814 provides foundational insights on the current size and nature of Australia’s private credit sector. It highlights examples of better and poorer practices and identifies areas requiring industry and regulator attention.
REP 814 and industry feedback has underscored that if ‘done well’, private credit complements the banking system and provides further opportunities for innovation, employment and growth.
REP 814 has also identified positive private credit practices and called out concerning ones that require address.
The identified private credit issues of concern include:
- Opaque remuneration and fee structures
- Related party transactions and governance arrangements
- Valuation practices, and
- Inconsistent use of terms for effective disclosure.
These insights align to early findings from ASIC’s retail and wholesale surveillance work, which recently led to design and distribution stop orders against RELI Capital Mortgage Fund (25-208MR) and La Trobe’s US Private Credit Fund (25-205MR) and Australian Credit Fund (25-206MR).
ASIC Chair Joe Longo said the report showed the importance of adhering to existing regulation and highly regarded global standards to ensure confidence in Australia’s rapidly expanding $200 billion private credit sector.
Read Advancing Australia’s public and private markets: progress update.
Supporting responsible innovation through exemptions for Australian stablecoin distributors
This month, ASIC granted class relief for intermediaries engaging in the secondary distribution of a stablecoin issued by an Australian financial services (AFS) licensed issuer.
This is an important step in facilitating growth and responsible innovation in the digital assets and payments sectors.
The first-of-its-kind relief exempts intermediaries from the requirement to hold separate AFS, Australian market, or clearing and settlement facility licences when providing services related to stablecoins issued by an AFS licensee.
Intermediaries benefiting from this relief must make the exempt stablecoin’s product disclosure statement available to their clients (where an issuer has prepared a Product Disclosure Statement).
Proposing extending stablecoin exemption
The agency is now seeking feedback on a proposal to extend the same relief to intermediaries distributing a second stablecoin.
ASIC welcomes feedback from industry on the draft instrument by 5pm on Thursday 2 October 2025 AEST. Submissions should be sent to fintech@asic.gov.au.
Contribute to ASIC’s regulatory simplification work
ASIC is seeking feedback and calling for further ideas for regulatory simplification, following a new report sharing the agency has already culled more than 9,240 pages of regulation since January this year.
The report, Regulatory Simplification (REP 813), marks the first milestone in ASIC’s simplification work and seeks input on a range of initiatives aimed at making regulation clearer, more accessible and easier to navigate—while maintaining strong consumer protections.
The report outlines ASIC’s initiatives in the following key areas:
- Improving access to regulatory information, including a redesigned ASIC website, and regulatory roadmap pilots for small-company directors and providers of financial advice
- Reducing complexity in regulatory instruments, with pilots to consolidate and simplify 23 legislative instruments by at least 65 pages
- Making it easier to interact with ASIC, including transitioning more ‘paper-only’ documents to email lodgement and enabling electronic signatures on all forms by 1 October this year.
The paper also highlights areas of law reform which we heard from stakeholders would simplify regulation and ASIC is working closely with Treasury to explore broader opportunities for reform.
Submissions can be made anonymously or via email to simplificationconsultativegroup@asic.gov.au by 15 October 2025.
Stay vigilant: Act to protect client accounts from fraudulent share sale fraud activity
ASIC is aware of fraudulent client account activity occurring in Australia, and we call on all brokers to increase vigilance and act swiftly where such activity is identified. This follows recent overseas criminal activity in Japan and East Asia.
Share sale fraud may occur by way of account takeovers or the creation of new accounts using stolen client credentials.
We encourage brokers to have appropriate pre-trade controls to identify and stop anomalies such as unverified changes in client details or unusual trading patterns and suspicious orders.
Appropriate pre-trade controls include:
- Removing Direct Market Access (DMA) access where appropriate,
- Conducting timely post-trade reviews of abnormal trading activity, and
- Immediately suspending and/or closing any accounts of concern.
Following a spike in reports of stolen shares due to identity theft in 2024 and an industry review, ASIC updated guidance to help brokers protect their clients and businesses from share sale fraud.
What to do if you identify suspicious client account activity
We expect brokers to act quickly when suspicious activity is identified.
You should notify ASIC in a timely manner through the ASIC Regulatory Portal or by emailing markets@asic.gov.au.
By reporting suspicious activity, brokers can help ASIC identify market misconduct and take action. We also encourage brokers to report suspicious trading activity with AUSTRAC.
A collaborative approach is essential to combatting fraud. It also supports the safety and security of your clients and Australia’s financial markets.
Client resources
There are also resources available to for affected clients.
The Office of the Australian Information Commissioner (OAIC) provides guidance to victims of identity theft.
Moneysmart also has practical guidance steps for clients who suspect identity theft, and tips to help prevent it.
Appointment of new Chairs and members to the Markets Disciplinary Panel
ASIC has appointed a new Chair, Deputy Chair, and three new members to the Markets Disciplinary Panel (MDP), and thanks five retiring members for their valued contribution.
The MDP is a peer review panel that determines, on ASIC’s behalf, whether infringement notices should be issued for alleged breaches of the market integrity rules by market participants.
Victoria Weekes has been appointed Chair of the MDP following the retirement of Simon Gray from the MDP after fifteen years of service, including nine as Chair.
Anthony Brittain, Executive Director and Chief Operating and Financial Officer of Euroz Hartleys, has been appointed Deputy Chair.
ASIC welcomes the following new members to the MDP:
- Annette Spencer (General Counsel, Barrenjoey Capital Partners)
- Sebastien Bonvalet-Nicolle (former Head of Listed Derivatives and Clearing for Asia Pacific, Deutsche Bank), and
- Andrew Couper (Head of Markets Compliance, Regal Partners; former Head of Compliance, Credit Suisse).
ASIC thanks retiring MDP members Simon Gray, Anne Brown, Ian Chambers, Geoff Louw, and Dan Ritchie for their dedicated service. ASIC is especially grateful to Simon Gray for his dedicated leadership and governance as Chair of the MDP over the last nine years.
The MDP plays a vital role in ensuring fair and effective financial markets for all Australians. The considerable depth and breadth of expertise of the panel will ensure continued success in upholding market integrity.
Recent enforcement outcomes and actions
In September, we announced the following enforcement actions and outcomes: