In this Funds Update for 21 November 2025:
- ASIC announces 2026 enforcement priorities
- ASIC takes more enforcement action re Shield and First Guardian Master Fund collapse
ASIC announces 2026 enforcement priorities
On 13 November 2025, ASIC announced its 2026 enforcement priorities.
ASIC’s new enforcement priorities are:
a. Poor private credit practices
b. Continuing to hold those responsible to account for the collapse of the Shield and First Guardian Master Funds
c. Financial reporting misconduct including failure to lodge financial reports
d. Misleading pricing practices impacting the cost of living for Australians
e. Claims and complaint handling failures by insurers
ASIC’s continuing enforcement priorities are:
f. Holding super trustees to account for member services failures
g. Strengthening investigation and prosecution of insider trading conduct
h. Auditor misconduct
i. Unlawful practices seeking to evade small business creditors
j. Misconduct exploiting consumers facing financial difficulty including predatory credit practices
We previously reported on issues reflected in ASIC’s new enforcement priorities, particularly the private credit market, in our Funds Update of 26 September 2025 concerning Report 814 and our Funds Update of 7 November 2025 regarding Report 823 and Report 820.
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ASIC takes more enforcement action re Shield and First Guardian Master Fund collapse
Consistent with the new enforcement priority noted above, ASIC has announced more enforcement action in the wake of the collapse of Shield Master Fund and First Guardian Master Fund including commencing civil penalty proceedings on 12 November 2025 against:
- a research house in relation to the reports it published re the Shield Master Fund, the first such action to be brought against a research house; and
- a financial adviser against a financial adviser, for allegedly failing to ensure that its former representatives complied with best interests obligations and to have adequate risk management systems in place.
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Fiona Smedley
Partner, Sydney
Disclaimer
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