Thank you, Chair, and members of the Committee, for the opportunity to appear today.

I am joined today by Commissioners Alan Kirkland and Simone Constant, CEO Scott Gregson and Executive Director for Enforcement and Compliance, Chris Savundra. Commissioner Kate O’Rourke is currently on leave.

I note we have a new Committee member in Senator Dolega – it was good to meet with you recently and we look forward to engaging with you further through the work of the Committee.

You will have our written submission, and there are some matters I would like to update the Committee on.

Statement of intent and corporate plan

First, the Government recently issued ASIC with a new Statement of Expectations. It gives us a clear mandate to support strong and sustainable economic growth, while maintaining important consumer and market integrity protections. It asks us to consider carefully the regulatory impact of our work, particularly on small businesses and new market entrants.

We recognise that important responsibility. In our view strong regulation and economic growth are not opposing objectives. A well-regulated financial system gives consumers and investors confidence that the system is fair. And when the rules of the game are clear, it also gives responsible businesses confidence to invest, compete and innovate.

ASIC's Corporate Plan 2026–27, released last week, outlines five priorities: improving consumer and small business outcomes; strengthening professional conduct and reliable information; supporting better retirement outcomes and superannuation services; supporting resilient and innovative operations; and driving integrity and confidence across markets. We welcome engaging with the Committee on these issues.

KPMG matter

Second, I would like to update the Committee on our work regarding KPMG. We have several investigations underway at present, including into the alleged misuse of confidential client information, whistleblower victimisation concerns, and auditor transparency reports.

We are also conducting a surveillance of audit conduct complaints, including potential whistleblower complaints, received by KPMG, Deloitte, EY and PwC. We are working at pace on these matters and expect to provide an update before the end of the year.

Consumer focussed work

Third, I’d like to draw your attention to our recent work addressing consumer harm:

• The first relates to a surveillance of eight banks in relation to mortgage offset accounts. Our review found weaknesses in how mortgage offset accounts were set up, monitored and managed. Banks have reported to us paying more than $55 million in compensation for offset failures, with further remediation expected. Customers should receive the interest savings they were promised without having to identify failures themselves.
• Second, our motor vehicle insurance review found that insurers were not clearly explaining what drives premium increases. Consumers were also not always told they could save up to 20 per cent by paying annually rather than by instalments. Consumers need clear information from insurers to understand and properly compare their options.

Private credit

Fourth, there have been several troubling developments in the private credit sector, most notably with the recent collapse of Bathla.

ASIC has been calling out what we see as some of the risks associated with private credit for some time. Over the past eighteen months, ASIC has increased its focus on private credit, beginning with our discussion paper on public and private markets and the release of the 10 principles of private credit in November 2025.

Currently there is a lack of information and insight into wholesale private credit funds. The limited information set we get in Australia is well below that of similar jurisdictions like the US or the UK. That’s why earlier this year we also called for greater data and transparency so regulators and investors can better understand risks in what is otherwise an opaque market.

When done well, private credit plays an important role in our financial ecosystem, financing productive projects, and supporting infrastructure and commercial enterprise. However, recent developments reinforce why strong governance, effective oversight, and clear and accurate disclosures and valuations are critical.

Enforcement update

Finally, the last financial year saw ASIC deliver its strongest enforcement period on record, with civil penalty orders totalling $830 million and $644 million paid back to Australians in connection with ASIC’s work. This includes the Federal Court recently ordering record penalties of more than $300 million against Union Standard International Group and two former authorised representatives for systemic unconscionable conduct and other breaches involving high-risk contracts for difference. The businesses targeted inexperienced and vulnerable people, and customers lost more than $83 million.

We welcome the committee’s questions.