Funds Update - 4 September 2026

In this Funds Update for 4 September 2026:

1. Government announces reform package in response to Shield and First Guardian failures
2. Superannuation trustees contravene “efficiently, honestly and fairly” obligation in connection with First Guardian
3. Companies to provide director identification numbers to ASIC
4. Government announces its Financial Innovation Strategy

ASIC releases its 2026-2027 Corporate Plan, outlining its new strategic priorities

On 24 August 2026, ASIC released its 2026-2027 Corporate Plan, announcing that it is committed to being easier to deal with for those trying to comply with the law, while being harder to avoid for those causing harm. 

ASIC’s strategic priorities for the year ahead are:

1. Improve consumer and small business outcomes;
2. Strengthen professional conduct and improve access to reliable financial and business information;
3. Support better retirement outcomes and superannuation member services;
4. Support effective, resilient and innovative operations; and
5. Drive integrity, transparency and confidence across markets.

Of note, ASIC has announced its continued focus on financial reporting to address failures by companies and other regulated entities to comply with obligations to lodge financial reports.  This includes a focus on sustainability reports and audits, valuations in financial reports and auditor conduct.

ASIC has also stated that managed investment scheme oversight is a focus area.   

• ASIC will engage with industry bodies on their work to lift managed investment scheme standards and practices, including in the private credit sector, through the review, development and adoption of enhanced industry standards, building on its Report 823 Advancing Australia’s evolving capital markets: Discussion paper response report (REP 823).
• ASIC will enhance its supervisory approach to managed investment schemes through a targeted annual, risk-based surveillance program. 
• ASIC will also enhance its data capability to increase its visibility of risks in the managed funds sector and make better use of data. 

ASIC will continue its surveillances of wholesale private equity valuation practices and wholesale private credit liquidity and credit risk management. It will continue its surveillance on the distribution of private credit funds to retail clients through direct and advised channels.

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Superannuation trustees contravene “efficiently, honestly and fairly” obligation in connection with First Guardian

On 20 August 2026, the Federal Court of Australia declared that certain superannuation trustees contravened section 912A(1)(a) and section 912A(5A) of the Corporations Act 2001 (Cth) by failing to do all things necessary to ensure that the financial services covered by their  financial services licences were provided efficiently, honestly and fairly, in connection with First Guardian funds that were made available to adviser-led members under one of the superannuation trustees’ investment products. 

ASIC commenced proceedings against the superannuation trustees after accepting an enforceable undertaking requiring them to compensate affected members 100% of the amounts they invested in First Guardian, less any amounts withdrawn.

The superannuation trustees admitted to the contraventions alleged by ASIC. 

The Court made declarations that the superannuation trustees failed to obtain and assess sufficient information about First Guardian, failed to make sufficient independent enquiries to understand or evaluate the investment risk of First Guardian before and while offering it to members, and did not inform members of the potential illiquidity of First Guardian.

ASIC did not seek a pecuniary penalty order against the superannuation trustees having regard to: 

• the superannuation trustees’ enforceable undertaking to pay compensation to affected members; 
• the strong public interest in prioritising the prompt return of capital invested by members of APRA regulated superannuation funds; 
• the superannuation entities’ early and productive cooperation avoiding contested litigation and demonstrating contrition; and 
• the declarations of contravention proposed jointly by the parties.

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Companies to provide director identification numbers to ASIC

From 1 July 2027, new laws passed under the Treasury Laws Amendment (Business Registries Stabilisation and Uplift) Act 2026 (Cth) will require companies to provide director identification numbers (director IDs or DINs) to ASIC.

Companies will need to provide director IDs to ASIC through company reporting processes, including annual reviews and when notifying changes to director details. Further information and guidance will be provided before 1 July 2027.

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Government announces its Financial Innovation Strategy

On 3 September 2026, the Government announced its Financial Innovation Strategy, which includes establishing a Financial Innovation Committee and modernising Australia’s regulatory sandbox framework by implementing the recommendations of the Enhanced Regulatory Sandbox review. Regulators will develop targeted thematic sandboxes in priority areas, including AI-enabled financial services.

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