Funds Update - 4 July 2025

In this Funds Update for 4 July 2025.

1. New relief under the reportable situations regime
2. ASIC updates RG 132 and 136
3. Further clarity on AFSL applications in ASIC’s new regulatory portal

New relief under the reportable situations regime 

On 27 June 2025, ASIC released a new legislative instrument, ASIC Corporations and Credit (Amendment) Instrument 2025/289, introducing additional relief to Australian financial service licence (AFSL) holders and credit licence holders in respect of the reportable situations regime.

Importantly, the instrument has amended the timing threshold for reporting ongoing investigations. Licensees are now only required to report an investigation into whether there is a reportable situation if the investigation continues for more than 60 days (instead of 30 days).

Secondly, under the new relief, breaches of civil penalty provisions or the misleading or deceptive conduct provisions will not be deemed to be a ‘significant’ breach of a ‘core obligation’ (and so not automatically reportable) if:

• no more than 10 persons are (or are likely to be) impacted;
• the total financial loss or damage (actual or likely) resulting from the incident does not exceed $1,000, regardless of any remediation;
• the breach is rectified within 60 days of the reportable situation first occurring;
• the circumstances do not involve a breach of sections 828C (the obligation to comply with clearing and settlement services rules) or 981M (re complying with client money reporting rules) of the Corporations Act 2001 (Cth); and
• but for the operation of the relief, the circumstances:
  • would only give rise to single reportable situation (or single group of reportable situations); and
  • would not give rise to a reportable situation beyond a breach of a civil penalty provision or the misleading or deceptive conduct provisions.

Licensees should consider updating their reportable situation or breach reporting policies for this new relief.   

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ASIC updates RG 132 and 136 

On 30 June 2025, ASIC updated two regulatory guides relating to managed investment schemes. The following updates are minor and administrative in nature:

• Regulatory Guide 132 Funds management: Compliance and oversight: updated references to superseded Australian Standards, Class Orders and other ASIC guidance; and
• Regulatory Guide 136 Funds management: Discretionary powers: amendments to accommodate virtual-only and hybrid meetings, updated references to obsolete class orders and related definitions, inserting references to corporate collective investment vehicles and minor rewording to improve clarity.

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Further clarity on AFSL applications in ASIC’s new regulatory portal

On 16 June 2025, ASIC completed its transition to the new ASIC regulatory portal, introducing significant changes to the process for applying for, varying and suspending AFSLs.

To support the change, ASIC has reissued RG 1 Applying for and varying an AFS licence and published the new Information Sheet 294: FAQs: AFS licence applications.

Key changes under the new process include:

• applicants are no longer required to complete legacy forms for the relevant transaction such as Form FS01 Application for an AFS licence, Form FS03 Application for variation of authorisation or FS20 Change of details for an AFSL;
• the previous requirement to submit ‘core’ and ‘non-core’ proofs has been removed;
• instead, applicants must respond to a detailed set of questions about their proposed business, financial services and products, their fit and proper persons, nominated responsible managers and their obligations as an AFSL holder (see here for ASIC’s list of potential questions); and
• applicants must now submit ‘people proofs’ – supporting documents tailored to the type of licence and the complexity of the financial services and products offered.

For further information on the new regulatory portal, ASIC has also updated its information page about the portal and AFSL holders.

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