ASIC reporting and audit update

ASIC’s Reporting and Audit Update – Issue 4 outlines the regulator’s core priorities and enforcement outcomes for financial reporting, auditing, and compliance. While the update broadly targets all corporate entities, several key points are highly relevant for an AFSL holder, including:

  • For the upcoming financial year, ASIC plans to review 25 audit files. This will specifically include a selection of MIS alongside listed and unlisted entities, with a focus on risk areas like material misstatements or data indicating compromised audit quality.
  • ASIC’s zero-tolerance stance on late financial reporting still stands, reminding AFSL holders that strict compliance with standard reporting deadlines is a critical operational requirement.
  • ASIC has separately proposed streamlining 17 financial reporting and auditing relief instruments down to just two. AFSL holders utilising corporate reporting exemptions should monitor this regulatory simplification initiative as it transitions to a more consolidated framework. More information – here.

Organisations affected: AFSL holders

Policies affected: Reporting Policies and Procedures

ASIC climate reporting lessons for AFSL holders

ASIC has signalled that the initial wave of mandatory sustainability reports establishes an important baseline for market transparency, but compliance quality must continue to mature. For AFSL holders, whether analysing these disclosures as investors or preparing for their own Group 2 obligations starting 1 July 2026, the regulator highlighted several critical enforcement expectations:

  • Remove inconsistent disclaimers: firms must omit broad legal disclaimers that instruct investors not to rely on the sustainability data for investment decisions.
  • Isolate mandatory metrics: statutory climate disclosures must be clearly delineated, so they are not obscured by a firm’s voluntary ESG marketing materials.
  • Detail judgements and history: risk reports must clearly explain the management judgements used and incorporate past extreme weather impacts alongside forward-looking climate trends.
  • Strict cross-referencing and targets: external cross-referenced materials must be published simultaneously on identical terms and precisely cited, while legally mandated emission goals must be explicitly factored in as formal climate targets.

ASIC will maintain a supportive rolling out webinars and guidance throughout June 2026 to assist upcoming reporting cohorts. More information – here.

Organisations affected: AFSL holders

Policies affected: Reporting policies

AUSTRAC launches new transaction reporting forms

AUSTRAC will introduce updated Threshold Transaction Report (TTR) and Suspicious Matter Report (SMR) forms on 1 July 2026 to improve data quality and streamline reporting within the AUSTRAC Online portal.

Existing reporting entities already reporting prior to 30 March 2026 are granted a flexible transition period, giving them until 30 March 2029 to update their systems and adopt the new forms.

Updates maybe required in your AML/CTF Program or any transaction reporting procedures. This affects any existing reporting entity. More information – here.

Organisations affected: Reporting entities

Policies affected: AML/CTF Program or any transaction reporting procedures

OAIC survey: a privacy reminder

Australian Privacy Commissioner Carly Kind has urged businesses to establish robust privacy frameworks, avoid collecting unnecessary data, and maintain absolute transparency regarding AI and biometric data usage to confidently rebuild community trust after the results of the 2026 Australian Community Attitudes to Privacy Survey (ACAPS) were published.

The survey revealed 87% of Australians are significantly more concerned about their privacy than they were five years ago. Released alongside a 73% surge in financial year-to-date privacy complaints, the report highlights a profound trust deficit in emerging technologies; only 4% of respondents trust artificial intelligence companies, and a mere 3% trust social media platforms. While 92% of Australians find data collection acceptable under strict conditions; such as limited collection, clear purposes, and explicit opt-out options; only 10% believe that organisations’ real-world online data practices are fair. More information – here.

Organisations affected: All organisations

Policies affected: Privacy and data collection related policies and procedures

ASIC proposes streamlining financial reporting and auditing instruments

As part of its ongoing regulatory simplification agenda, ASIC has opened a public consultation proposing to collapse 17 distinct legislative instruments into just 2 consolidated documents to eliminate overlapping subjects and clarify relief eligibility. Under the proposal, 14 financial reporting instruments; covering matters like rounded figures, stapled entity combined statements, and electronic lodgements; will be merged into the new ASIC Corporations (Annual and Half-year Reporting) Instrument 2026/XXX. Concurrently, 3 auditing instruments will be absorbed into the ASIC Corporations (Auditing) Instrument 2026/XXX. While the framework aims to significantly reduce administrative clutter, certain relief frameworks like the wholly-owned companies instrument are being temporarily excluded for further independent review. Financial licensees, registered schemes, and industry stakeholders have until 10 July 2026 to submit their formal feedback. More information – here.

Contact MIntegrity today for a confidential consultation and expert regulatory support.

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