Unsolicited selling

The Australian Competition and Consumer Commission (ACCC) is examining unsolicited selling and lead generation practices and cold calling. The review, prompted by a complaint from the Consumer Action Law Centre, aims to understand the consumer experience, sales structures, the role of lead generation (especially social media), and potential breaches of Australian Consumer Law. The ACCC has opened a public consultation and will publish a report on its findings, potentially leading to further action to protect vulnerable consumers from financial harm. Read more here.

Policies affected: Advice related or Anti Hawking Policies

Organisations affected:  AFSL providing personal advice to retail clients

RSE licensees on notice – put members’ best financial interests first

The Australian Prudential Regulation Authority (APRA) has released a letter to Registrable Superannuation Entity (RSE) licensees, detailing observations and expectations regarding the Best Financial Interests Duty (BFID). Based on intensified scrutiny of fund expenditure, APRA identified key areas for improvement in decision-making, conflict management, expenditure frameworks, and reporting, all aimed at ensuring that RSE licensees prioritise members’ financial interests. APRA will continue to monitor the industry and enforce compliance to secure better retirement outcomes for superannuation members. Read more here.

Policies affected: Conflict management, Expenditure frameworks, and Reporting policies and procedures.

Organisations affected:  Registrable Superannuation Entities

APRA’s updated standard on operational risk management

The Australian Prudential Regulation Authority (APRA)’s new prudential standard, CPS 230 Operational Risk Management, became effective on July 1, 2025, mandating higher operational risk management standards for banks, insurers, and superannuation funds. This standard aims to ensure the continuity of critical services and effective responses to business disruptions by requiring entities to identify vital business services, test business continuity plans, and enhance third-party risk management. The initiative underscores the increasing importance of operational resilience amidst a highly interconnected financial system and rising digital and geopolitical risks. Read more here.

Policies affected: Risk Management policies and procedures

Organisations affected:  Banks, Insurers, and Superannuation funds

Share sales fraud – on the rise

The Australian Securities and Investments Commission (ASIC) has updated its guidance for Australian financial services (AFS) licensees to combat a significant rise in share sale fraud, which saw a seven-fold increase in reports over four years. This type of fraud involves imposters illicitly selling shares, causing severe financial and emotional distress. ASIC is urging market intermediaries to enhance their prevention, detection, and response strategies, providing updated Information Sheet 237 to help protect clients and businesses from these fraudulent activities. Read more here.

Policies affected: Suspicious activity or Cyber security policies

Organisations affected:  AFS licensees who are market intermediaries

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