Australia: Financial Services

The Australian Government has unveiled its Financial Innovation Strategy, introducing a new Financial Innovation Committee and overhauling the Enhanced Regulatory Sandbox framework to better support emerging businesses testing innovative financial products. The strategy encompasses reforms across consumer data rights, digital assets, tokenised infrastructure, and regulatory frameworks designed to position Australia as a leader in financial innovation.

Obtaining certainty of being classified as a ‘fixed trust’ is now more important than ever for fund managers as the trustees of most non-fixed trusts are proposed to be subject to a 30% minimum tax from 1 July 2028.

A Queensland Supreme Court case demonstrates how a poorly drafted deed of priority left a lender unable to recover $32.3 million in development completion costs ahead of a junior lender's debt. The decision reveals critical gaps in standard priority deed language when a developer collapses and a mortgagee must fund completion from their own resources.

Against a backdrop of geopolitical uncertainty, regulatory change and economic volatility, Australian private M&A proved remarkably resilient in 2025. The return of the billion-dollar deal, sustained private capital deployment and an increased focus on deal certainty defined the market.

ASIC has now released its initial observations from the first wave of sustainability reports for December year-end entities. The purpose of this release was to provide practical guidance to companies and their advisers as they prepare for the upcoming June reporting cycle.

A company is facing a winding up application. The hearing date is approaching. Days before the hearing, voluntary administrators are appointed and the Court is asked to adjourn. For years, that strategy often bought time. Increasingly, it does not.

ASIC recently issued an infringement notice to Deutsche Bank Aktiengesellschaft (Deutsche Bank), which paid a penalty of $2 million for misreporting more than 260,000 over-the-counter (OTC) derivative transactions. This is a step-change in scale for ASIC trade reporting enforcement – roughly four times the combined AMP Life/AMP Capital penalties ($526,000, 2020) and more than fifteen times the Westpac penalty ($127,250, 2017), both issued under the earlier reporting rules regime.

Employee Entitlement Scheme operators face a critical deadline of 1 September 2026 to obtain an Australian Financial Services License (AFSL) to continue operations. Understanding the application requirements and compliance obligations is essential for businesses managing employee contribution schemes. Sophie Grace provides comprehensive support for AFSL applications, AUSTRAC registration, and tailored AML/CTF compliance programs.

Borrowers facing mortgage default must choose between refinancing their existing loan or selling their property voluntarily before enforcement action is completed. Understanding the practical differences between these options, including how each affects equity retention and borrower control, can significantly impact the financial outcome when default proceedings are underway.