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Regulation

Regulation
ASIC widens First Guardian, Shield litigation
The Australian Securities and Investments Commission (ASIC) has continued to take legal action over the First Guardian and Shield master fund failures, with proceedings filed in the Federal Court against financial advisory and research firms. ASIC has taken action against Interprac Financial Planning Pty Ltd and SQM Research Pty Ltd in the wake of the fund collapses, which have cost members more than A$500 million. The regulator alleged thousands of Australians were exposed to poor financial advice and significant risks from Shield and First Guardian through critical oversight and compliance failures by Interprac. Interprac allegedly failed to ensure its former authorised representatives, Venture Egg and Rhys Reilly Pty Ltd, complied with the best interests obligations and failed to have adequate risk management systems. “We allege Interprac failed to ensure certain authorised representatives acted in their clients’ best interests, contributing to hundreds of millions of dollars of superannuation being invested in products that were unsuitable, high risk and costly,” ASIC Deputy Chair Sarah Court said in a media release. ASIC has also alleged that SQM Research prepared reports containing misleading representations,
Regulation
Platforms operators face action if they fail members
The Australian Prudential Regulation Authority (APRA) has called on superannuation trustees to do more to safeguard members’ investments in platform products following the A$500 million (US$331 million) collapse of two investment schemes. APRA has written to trustees to explain the findings of, and actions arising from, its review of the fast growing $397 billion platforms market, which represents 13.1% of APRA-regulated fund assets. The letter calls on trustees to lift standards, outlines APRA’s observations about industry practices and requires them to confirm Financial Accountability Regime accountabilities, consider if they have breached prudential standards and obligations, and plan actions to lift standards. APRA Deputy Chair Margaret Cole said the availability of the First Guardian Master Fund and Shield Master Fund managed investment schemes on platforms had exposed members to the risk of significant loss and uncertainty. Investors have lost more than $500 million in their collapse. Noting a variation in practices across platform trustees, APRA called on all platform trustees to address weaknesses and accelerate efforts to lift standards. Cole said APRA would escalate supervision intensity to ensure that
Regulation
Cboe listing approval intensifies ASX's competition
Australia’s struggling share market operator, the Australian Securities Exchange (ASX), is facing more competition with the Australian Securities & Investments Commission (ASIC) approving Cboe Australia’s (Cboe) listing market application. This brings to four the number of markets licensed to list securities in Australia: ASX, National Stock Exchange of Australia (NSX), Sydney Stock Exchange (SSX) and Cboe. ASIC said Cboe would be able to list new companies on its platform in competition with ASX and other market operators, giving Australians access to more investment options, initial public offerings and dual-listed foreign entities. The decision reinforced ASIC’s commitment to promote a vibrant and attractive local listing market. “Australia’s capital markets are strong and resilient, but they must continue to adapt to evolving global market dynamics and meet the future needs of our economy,” ASIC Chair Joe Longo said in a media release. “This move will provide more choice for companies to list in Australia, build more links to offshore markets and create more options for investors, which is good news for the Australian economy.” Launched in Australia in 2011 as Chi-X Australia, Cboe accounts for 20% of Austral
Regulation
ASIC flags greater PC anxiety after La Trobe stop order
La Trobe Financial private credit is as safe as houses: At least that’s what investors in this alternative asset manager have been conditioned to expect after receiving the top gong for the fifth consecutive year as Australia’s Best Non-Bank Lender in Money magazine Consumer Finance Awards. However, the non-bank lenders' reputation recently started to unravel after the regulator ASIC commenced interim product stop orders - valid for 21 days unless revoked earlier - against La Trobe US Private Credit Fund (USPC), the 12 Month Term Account and 2 Year Account products offered under the La Trobe Australian Credit Fund and the RELI Capital Mortgage Fund. ASIC raised a red flag over concerns that investors had made an “inappropriate level of portfolio allocation” to the funds, given the underlying risks. In the case of the RELI fund, the target market potentially includes investors who intend to hold the fund as a “core component” (defined as 25 to 75%) of their portfolio. ASIC said it also continues to have concerns around La Trobe's TMD (target market determination) for the USPC Fund.Inappropriate portfolio allocationUnderlying these concerns is an inference that TMD suggests an inappropriate level of portfolio allocation giv
Regulation
ASIC declares fund collapse probes far from over
Australia’s corporate regulator has promised to pursue and hold to account those responsible for the A$500 million-plus collapse of two investment schemes. The Australian Securities and Investments Commission (ASIC) said it was continuing to investigate people and entities connected to the Shield Master Fund and the First Guardian Master Fund. Macquarie Group (ASX: MQG) on Thursday agreed to compensate investors for A$321 million of losses connected to Shield, for which its Macquarie Investment Management Limited subsidiary was trustee for an investment platform that offered the fund. The trustee for the other investment platform that offered Shield, Equity Trustees, is defending Federal Court proceedings launched by ASIC alleging due diligence failures. An ASIC spokesperson said it was conducting multiple investigations into conduct connected to First Guardian, a managed investment scheme operated and managed by Falcon Capital. It was probing people and entities connected to First Guardian, including marketing lead generators, financial advisers and the firms that authorised them, trustees that made First Guardian available via platforms, auditors and scheme operators. ASIC was also continuing to investigate Inf

Regulation
ASIC private credit crackdown extends to Latrobe
The Australian Securities and Investments Commission (ASIC) has stopped private A$20 billion asset manager Latrobe Financial Asset Management from raising money through three fixed interest products. ASIC made interim stop orders against the La Trobe US Private Credit Fund and the 12-month term account and two-year term account products offered under the La Trobe Australian Credit Fund. The corporate regulator said fundraising was frozen due to deficiencies in the target market determination (TMD) for the two La Trobe Australian Credit products. ASIC was concerned that the target market for these products suggested an inappropriate level of portfolio allocation, given the risks of the fund and did not include appropriate distribution conditions.  The action against the La Trobe US Private Credit Fund was to protect consumers and retail investors from acquiring a product that may not be suitable for their financial objectives, situation or needs. “ASIC is taking this action to protect consumers and retail investors from acquiring products that may not be suitable for their financial objectives, situation or needs,” the regulator said in a media release. ASIC has issued 91 interim stop orders and one final stop ord
Regulation
ANZ fined $240 million for widespread misconduct
Australia and New Zealand Banking Group (ANZ) has agreed to pay A$240 million (US$943 million) in fines after admitting to engaging in widespread misconduct and misreporting bond trading data to the Australian Government. The Australian Securities and Investments Commission (ASIC) said ASIC and ANZ would ask the Federal Court to impose the penalties in relation to four proceedings spanning misconduct across the bank’s institutional and retail divisions. ASIC Chair Joe Longo said the penalties were the largest by ASIC against one entity and reflected the seriousness and number of breaches of law, the vulnerable position that ANZ put its customers in and the repeated failures to rectify crucial issues. “Time and time again ANZ betrayed the trust of Australians,” Longo said in a media release. ANZ said it was subject to the following penalties:$85 million for its role as duration manager of a 10-year Treasury Bonds issue by the Australian Office of Financial Management (AOFM) in 2023$40 million for submitting inaccurate monthly secondary bond turnover data to the AOFM, making a false or misleading annual attestation to the AOFM and failing to lodge a report with ASIC in respect of those inaccuracies$40 million for failing
Regulation
RBA eyes $2.4bn savings via bold card fee overhaul
In a strong move to recalibrate Australia’s payments landscape, the Reserve Bank of Australia (RBA) has unveiled a Consultation Paper proposing the elimination of surcharges on EFTPOS, Mastercard, and Visa transactions — fees that currently cost consumers $1.2 billion annually. The central bank argues that surcharging has lost its original purpose of guiding consumers toward cost-efficient payment methods, especially as cash usage plummets and merchants apply blanket fees across card types. The proposed ban, slated for July 2026, would simplify transactions, enhance transparency, and inject competitive pressure into the card payments ecosystem. For businesses, particularly small enterprises, the RBA’s plan to lower interchange fee caps could unlock an additional $1.2 billion in annual savings. With 90% of Australian merchants expected to benefit, the reforms aim to level the playing field by capping foreign card fees and reducing the cost burden on those least able to negotiate favourable terms. The move aligns with broader efforts to position Australia as a globally competitive payments hub, echoing investors' calls for a lean transaction infrastructure and reduced friction in cross-border commerce. To further c
Regulation
Port of Newcastle unveils fixed-rate, high-yield note
Given that the bias is heavily tilted towards further interest rate cuts – with the big banks predicting three more 25-basis point cuts between August and February – the Port of Newcastle’s new long-dated [high yielding] fixed rate note is expected to attract retirees looking for certainty of income. Due to launch today (10 July) the Port of Newcastle is seeking indications of interest in a new 8-year Secured $A Fixed Rate note, which is currently being priced at a coupon of circa 6.475% and is expected to carry an issue rating of BBB (investment grade). As Australia’s largest east coast deepwater port and a major gateway to international trade, the Port of Newcastle plays a pivotal role in Australia's economy by handling a wide range of cargo — from coal and bulk goods to containers and clean energy products. It’s understood that the port contributes $71 billion to the Australian economy while handling over 166 million tonnes of cargo annually. Important points for investors to consider: The port is actively investing in renewable infrastructure, targeting a 50% reduction in emissions by 2030. Historically, it has been reliant on coal (95% of volume) but is aiming to increase non-coal revenue to 50% by 2030.Only 50%