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US/Ukraine minerals deal: Digging into the detail
The United States and Ukraine governments have announced the signature of an agreement of a minerals deal for Ukraine.
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Australia | Publication | May 2025
This article was co-authored with Tom Clark, Lucas Yang, Fereshtah Yosufi and Nick Varelas.
March 2025 was a busy month in the financial services space with the release of the draft bill on the second tranche of the ‘Delivering Better Financial Outcomes’ reform concerning advice provided through superannuation and client advice records. The Australian Parliament announced that the Senate Standing Committees on Environment and Communications has granted an extension for the publication of a report into greenwashing to the 5 August 2025.
From the regulators’ perspective, ASIC, APRA and AUSTRAC also had a fast-moving month. Significantly, ASIC issued guidance concerning sustainable reporting, treatment of student loan commitments by banks and lenders and Market Disciplinary Panel processes. It also provided conditional relief from fundraising, financial product disclosure, hawking and advertising requirements under the Corporations Act 2001 (Cth) (Corporations Act) and highlighted the importance of having good corporate governance and more effective reporting from senior management to address regulatory complexity. Additionally, APRA proposed changes to strengthen and streamline its prudential governance framework for banks, insurers and superannuation trustees, and made minor changes to reporting standards. Meanwhile, AUSTRAC issued guidance on the new ‘tipping off’ offence and released a statement on the agency’s use of artificial intelligence (AI).
On 6 March 2025 APRA released eight proposals aimed at strengthening its prudential governance framework for banks, insurers and superannuation trustees. The proposals aim to ensure APRA’s governance standards reflect best practice and establish clear benchmarks for regulated entities. APRA’s proposed changes include:
APRA invites stakeholders to make submissions on these proposals by 6 June 2025.
APRA’s media release can be accessed here. The Governance Review - Discussion Paper that sets out the proposals in greater detail can be accessed here.
See our article on APRA’s Governance Review here. Norton Rose Fulbright Australia will be making a targeted submission on the discussion paper, stay tuned for further updates.
The Government released a draft bill (Bill) and consultation paper on the next phase of the ‘Delivering Better Financial Outcomes’ reforms. These reforms will amend the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act) and the Corporations Act to reform financial advice rules in relation to provision of advice through superannuation, and requirements to provide a client advice record . Specifically, the reforms intend to:
The key documents on the draft bill and explanatory memorandum can be accessed here.
On 31 March 2025 ASIC handed down 34 recommendations to superannuation trustees, highlighting the impacts on members of poor industry practices in handling death benefit claims. The report highlighted issues such as excessive delays, poor customer service, ineffective claims handling procedures, gaps in trustee data and reporting, inconsistencies in trustees’ processes and procedures, inadequate communication and engagement and inadequate support for First Nations claimants and those experiencing vulnerability.
The recommendations focus on:
ASIC’s media release can be accessed here. Report 806 can be accessed here.
On 18 March 2025 the Federal Court imposed a $10.5 million civil penalty against a superannuation fund for greenwashing misconduct. In June 2024, the Federal Court found the superannuation fund contravened the law when it invested in various securities that were supposedly eliminated or restricted by its environmental, social and governance (ESG) investment screens, such as gambling, coal mining and oil tar sands. Furthermore, the superannuation fund made representations that Russian investments were ‘out’, following the Ukraine invasion. However, contrary to these representations, the fund held direct and indirect investments in various companies in the gambling, oil tar sands and coal mining sectors, and invested in a Russian entity.
ASIC’s media release can be accessed here. A copy of the liability judgment can be accessed here.
On 25 March 2025, the Senate Standing Committees on Environment and Communications granted an extension for the publication of a report into greenwashing to the 5 August 2025. The inquiry into greenwashing will focus on:
Parliament’s statement on this matter can be accessed here.
ASIC conducted a review into small amount credit contract provisions concerning referrals, unsolicited contact, avoidance and existing responsible lending obligations for Australian Credit Licensees. The review indicated some lenders providing small amount credit contracts may be moving vulnerable consumers into contracts with fewer protections. ‘Report 805 Falling short: Compliance with the small amount of credit contract obligations’ (REP 805) outlines ASIC’s observations from its recent review into lenders, following changes to laws governing small amount credit contracts in 2022 and 2023 under the Financial Service Reform Act 2022 (Cth).
The identified concerns are that certain small and medium amount credit contract providers may fall short of their obligations by:
ASIC advised lenders should consider the regulatory obligations on a consumer’s requirements and objectives before entering a contract and set appropriate review triggers in their target market determinations to monitor distribution risk of products outside their target market.
ASIC’s media release can be accessed here. REP 805 can be accessed here.
ASIC released minor updates to ‘Regulatory Guide 216 Markets Disciplinary Panel’ (RG216) to reflect recent Panel decisions on applying the new penalty regime imposed by the Treasury Laws Amendment (Strengthening Corporate and Financial Sector Penalties) Act 2019 (Cth) and current Market Disciplinary Panel (MDP) processes.
The MDP penalty regime increased the maximum penalties for conduct occurring wholly on or after 13 March 2019, stating a penalty should:
The updates reflect current MDP processes, including that MDP hearings can now be conducted virtually.
ASIC’s media release can be accessed here. The link to RG 216 can be accessed here.
ASIC published a regulatory guide on sustainability reporting under ‘Regulatory Guide 280’. This regulatory guide provides guidance for entities required to prepare a sustainability report containing climate-related financial information under Chapter 2M of the Corporations Act.
ASIC’s media release can be accessed here. Regulatory Guide 280 can be accessed here.
On 28 March 2025 ASIC announced that it will allow ASIC Corporations (Business Introduction Services) Instrument 2022/805 (Instrument) to expire on 1 April 2025. This Instrument provided conditional relief from fundraising, financial product disclosure, hawking and advertising requirements in the Corporations Act. These reliefs apply to persons making, or calling attention to, offers through a business introduction service and of interests in managed investment schemes, but not from the Australian financial services (AFS) licensing requirement.
ASIC’s media release can be accessed here. The Instrument can be accessed here.
On 12 March 2025 ASIC Chair Joe Longo highlighted the importance of having more technical expertise on boards and more effective reporting from senior management to address regulatory complexity in his key note speech at the Australian Institute of Company Directors (AICD). Mr Longo’s speech highlights the importance of respecting the foundational duties and expectations of directors, such as acting in good faith, in the best interests of the company, for a proper purpose and with due care and diligence.
ASIC’s media release can be accessed here.
On 17 March 2025, ASIC announced that it commenced proceedings against the registration of 17 approved self-managed superannuation fund auditors (SMSF) auditors, concerning alleged breaches across the following areas:
ASIC’s media release can be accessed here.
On 17 March 2025 ASIC applied to the Federal Court for the appointment of liquidators to the responsible entity of a managed investment scheme, and orders directing the liquidators to wind up the managed investment scheme. ASIC also sought the appointment of a receiver and manager to the personal property of one of the directors of the responsible entity. This followed previous action ASIC took in February 2025 to help protect investor funds, pending investigations into allegations that:
ASIC’s media release can be accessed here.
On 20 March 2025, ASIC announced it identified a technical error in the application of indexation to certain company review fees since 2011, including late fees, 10-year upfront fees and special company review fees under the Corporations (Review Fees) Regulations 2003.
The review identified a discrepancy between the original policy intention of the regulations and wording contained in actual enacted regulations. This meant that while ASIC applied the fees as originally intended, they did not reflect the regulations.
ASIC’s media release can be accessed here.
On 12 March 2025, ASIC commenced action against an investment firm, alleged that it failed to have adequate cybersecurity measures for more than 4 years, enabling the theft of approximately 385GB of confidential data, and some 18,000 clients have been notified that their personal information may have been compromised.
ASIC alleged between the period of March 2019 to 8 June 2023, a firm failed to take appropriate steps as an Australian Financial Services (AFS) licensee, to ensure it had adequate cyber risk management systems in place. Hence, this led to the theft of personal information and subsequent release of client data on the dark web. ASIC alleged the firm did not investigate and respond to the incident approximately a week after it had been notified by potential malicious activity by the Australian Signals Directorate’s Australian Cyber Security Centre.
ASIC’s media release can be accessed here.
On 26 March 2025, ASIC Commissioner Kate O’Rourke addressed the Australasian Investor Relations Association regarding the importance of AGMs as a key accountability mechanism, especially during a time of technological change and disruption. The address emphasised the importance of supporting compliance with the regulatory requirements that apply for AGMs.
Furthermore, the address highlighted the ability of investors to engage with directors and management to hold companies accountable, as part of good corporate governance and accountability. This includes getting information about the AGMs, and ensuring compliance of certain notices of meetings and reports of sufficient notice periods to enable shareholder participation.
ASIC’s media release on the address can be accessed here.
On 13 March 2025, APRA varied the additional licence conditions imposed on a trustee for a super fund. The initial conditions required the trustee to appoint an independent third party to review its fit and proper processes and expenditure management practices. The conditions were varied to update the timeframes for the trustee’s compliance, provide additional details to the trustee about the operation of the conditions, and enable the work contemplated in the conditions to be commenced by the trustee as soon as possible. APRA imposed the conditions to safeguard the interests of members and ensure APRA’s prudential concerns are addressed effectively and expeditiously.
APRA’s media release can be accessed here.
On 12 March 2025, APRA added ten new and revised two frequently asked questions (FAQs) and added two new worked examples for the Superannuation Data Transformation project. The FAQs intend to clarify reporting questions raised by RSE licensees.
APRA’s media release can be accessed here. The updated FAQs can be accessed here.
On 19 March 2025, APRA announced that it made minor changes to reporting standard ‘SRS 101.0 Definitions for Superannuation Data Collections’, reporting standard ‘SRS 553.0 Investment Exposure Concentrations and Valuations’ and reporting standard ‘SRS 606.0 RSE Profile’ to align to the APRA Connect taxonomy and clarify reporting requirements.
APRA’s media release can be accessed here. The amendments to the reporting standard can be accessed here.
On 18 March 2025, APRA Chair John Lonsdale delivered a speech to the AFR Banking Summit in Sydney titled ‘Building a strong governance framework for turbulent times’. The speech responded to initial feedback on APRA’s proposed changes to governance requirements and encouraged stakeholders that have concerns to engage with APRA constructively. It also addressed the global push for financial deregulation. APRA is currently reluctant to lower regulatory standards as these standards have kept Australia’s financial system resilient since the Global Financial Crisis.
The full speech can be accessed here.
On 21 March 2025, APRA Executive Director of General Insurance and Banking, Jane Magill, delivered a speech to the Future of Insurance conference titled ‘Facing into the Future: Strategies for Readiness’. The speech focused on the need for insurers to be ready and proactive when it comes to natural disasters including Cyclone Alfred, enhancing transparency and improving consumer outcomes. She also noted that the Financial Accountability Regime commences for insurers in March 2025 and that APRA’s Prudential Standard ‘CPS 230 Operational Risk Management’ will come into effect in July 2025.
The full speech can be accessed here.
APRA published the Quarterly Superannuation Industry Publication, Quarterly Superannuation product Statistics and the Quarterly Fund-level Statistics.
APRA’s media release can be accessed here. The quarterly Superannuation Industry Publication, Fund-level Statistics and Product Statistics can be accessed here.
APRA released the Quarterly Authorised Deposit-taking Institution (ADI) Performance and the Quarterly ADI Property Exposures publications for the quarter ending on 31 December 2024. The quarterly ADI performance considers information on ADI’s financial performance, financial position, capital adequacy, asset quality, liquidity and key financial performance ratios.
APRA’s media release can be accessed here. The quarterly authorised deposit-taking institution statistics can be accessed here.
APRA released its Monthly Authorised Deposit-taking Institution Statistics for February 2025. This publication provides selected information on the banking business of individual banks within the domestic market.
APRA’s media release can be accessed here. The Monthly Authorised Deposit-taking Institution Statistics can be accessed here.
APRA released its bi-annual intermediated general insurance statistics for December 2024. This publication outlines key statistics on intermediated general insurance placed with APRA-authorised general insurers, Lloyd’s underwriters and unauthorised foreign insurers.
APRA’s media release can be accessed here. The intermediated general insurance statistics can be accessed here.
APRA released its private health insurance risk equalisation statistics for the 2023/2024 financial year. This publication shows the net risk equalisation result for the financial year for each insurer.
APRA’s media release can be accessed here. The private health insurance risk equalisation statistics can be accessed here.
From 31 March 2025, the tipping off offence under section 123 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (the Act) will be repealed and replaced with a new offence.1 Currently, the AML/CTF Act prohibits the disclosure of information which may infer that a reporting entity has lodged a suspicious matter report with AUSTRAC. While the objectives under the new framework remain the same, the changes aim to provide more flexibility in permitting for the disclosure of relevant information for reasonable and legitimate purposes.
The new offence will prohibit disclosures of certain types of information to another person, where it would or could reasonably be expected to prejudice an investigation.
The new guidance note provides examples of types of information the subject of the offence, who the offence applies to, how tipping off may prejudice an investigation, and controls to put in place to reduce the risk of tipping off.
AUSTRAC’s guidance can be accessed here.
The Financial Action Task Force (FATF) recently published two important updates regarding international money laundering and terrorism financing (ML/TF) risks:
The High-Risk Jurisdictions subject to a Call for Action and the Jurisdictions under Increased Monitoring report can be accessed here and here.
AUSTRAC published its Artificial Intelligence Transparency Statement, reinforcing the regulator’s commitment to responsible and well-governed AI to enhance their regulatory, intelligence and corporate operations. The Statement also outlines how they currently use AI, their strategies for future AI adoption, and their governance framework to ensure the ethical, transparent, and secure implementation and use of AI within the agency.
AUSTRAC’s statement can be accessed here.
Publication
The United States and Ukraine governments have announced the signature of an agreement of a minerals deal for Ukraine.
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