Funds Update - 7 August 2026

In this Funds Update for 7 August 2026:

1. Increased NTA requirements for responsible entities from 1 July 2027
2. ASIC secures $830 million in civil penalties orders in 2025-2026 financial year
3. ASIC proposes remaking financial reporting relief for wholly-owned companies

Increased NTA requirements for responsible entities from 1 July 2027 

On 30 July 2026, ASIC announced that it will be increasing the net tangible assets (NTA) requirement for responsible entities of registered managed investment schemes, following its consideration of feedback to Consultation Paper 388 Net tangible assets requirement for responsible entities (CP 388). 

ASIC has indicated that it has opted for the ‘Option 1’ approach proposed in CP388, which will involve increasing the minimum financial thresholds in line with inflation between June 2013 and March 2026. ASIC has also stated that: 

• annual indexation will be introduced to ensure the thresholds remain current; and
• the increases will apply to responsible entities, operators of investor directed portfolio services (IDPS) and corporate directors of retail corporate collective investment vehicles (CCIVs).

The following increases to NTA requirements will be made: 

The increases will commence on 1 July 2027. The thresholds applying from this date will include the first annual indexation adjustment.

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ASIC secures $830 million in civil penalties orders in 2025-2026 financial year

ASIC has announced that, from 1 January to 30 June 2026, it secured court orders totalling $480 million in civil penalties against major banks, superannuation trustees, market participants and financial services firms.

ASIC’s enforcement and regulatory figures from July 2025 to June 2026 reveal:

• $830 million in total civil penalties imposed by courts over the 2025-2026 financial year;
• $643.5 million paid to tens of thousands of customers and investors as part of remediation, refunds, and payments in connection with ASIC’s work;
• ASIC launched more than 250 investigations;
• 25 criminal convictions, comprised of 21 custodial sentences (including 11 individuals sentenced to imprisonment) and four non-custodial sentences;
• 32 new civil proceedings filed and 18 new criminal prosecutions commenced; and
• $12 million in infringement notices and $137,315 in criminal fines.

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ASIC proposes remaking financial reporting relief for wholly-owned companies   

On 3 August 2026, ASIC announced that it is seeking feedback on its proposal to remake ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 (ASIC Instrument 2016/785), which provides relief for certain wholly-owned entities from the financial reporting obligations in Chapter 2M of the Corporations Act 2001. ASIC Instrument 2016/785 is scheduled to expire on 1 October 2026.

ASIC is proposing to continue the existing relief while the Australian Government progresses law reform for simplified reporting relief for group entities, announced as part of the Whole-of-Government Regulatory Reform Agenda in the 2026/27 Budget.

Under ASIC’s proposal, the relief in ASIC Instrument 2016/785 will be extended for five years, coupled with minor, technical changes to the instrument and related documents.

The relief provided in ASIC Instrument 2016/785 will continue to apply for financial years ending before 1 January 2027. The proposed new instrument will apply to financial years ending on or after this date,  ensuring that entities have continued financial reporting relief under their existing arrangements.

Feedback may be sent to [email protected] by 5pm AEST on 28 August 2026. 

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