ASIC digital assets framework: impact on AFSL Holders

The  Digital Assets Framework Act 2026 (DAF Act) brings digital asset and tokenised custody platforms into the AFS licensing regime starting 9 April 2027. Existing AFSL holders who operate or intend to launch such platforms will likely require a licence variation and must comply with new, specific financial requirements (RG 166), including updated liquidity and net tangible asset standards. Furthermore, the current “class no-action position” under INFO 225 expires in June 2026, meaning firms must maintain existing compliance throughout the transition.

Affected AFSL holders and platform operators should closely review ASIC’s roadmap to understand how these principles-based requirements will impact their specific corporate structures and operating models. Read more here.

Organisations affected: AFSL holders

Policies affected: Operational frameworks

AUSTRAC warning: low SMR reporting in the Wealth Management sector

AUSTRAC issued a formal warning to the wealth management sector following a supervisory campaign that revealed an alarmingly low level of suspicious matter reporting. Data from 2025 showed that 98% of wealth management businesses did not submit a single SMR, despite being exposed to significant money laundering and financial crime risks. Furthermore, nearly two-thirds of all industry reports came from just three businesses. Additionally, 92% of firms claimed to have zero high-risk customers, a figure AUSTRAC believes does not reflect the current criminal landscape.

The regulator highlighted that wealth management services remain particularly vulnerable to cyber fraud, stolen identities, and tax evasion.  AUSTRAC CEO urged firms to review their risk assessments and internal systems to implement more robust controls to ensure that high-risk scenarios and red flags are identified and reported promptly. Read more here.

Organisations affected: Wealth management firms

Policies affected: Risk management frameworks and Reporting policies

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