Australian Regulator Updates Financial Market Infrastructure Guidance

The Australian Securities and Investments Commission, known as ASIC, has published updated regulatory guidance to help financial market infrastructure operators meet new legal standards. These changes follow the implementation of the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024. The updated framework aims to strengthen the oversight of entities that facilitate trading in Australia’s capital markets. Financial market infrastructure, or FMI, includes a variety of essential entities that support the national economy. These include financial market operators, benchmark administrators, and clearing and settlement facilities. Derivative trade repositories are also included under the new regulatory scope. ASIC has been working to implement these reforms since the legislation commenced in September 2024. The regulator is now focusing on its new supervisory and enforcement powers granted by the act. These powers are designed to ensure that market participants maintain robust operational standards. Regulated entities are encouraged to review the updated guidance to understand how it impacts their daily business operations. The commission expects firms to align their internal policies with the enhanced regulatory framework. This process is part of a broader effort to maintain confidence in Australia's financial markets. Beyond these specific infrastructure updates, ASIC has been active in broader consumer protection efforts throughout 2026. The regulator recently remade three legislative instruments for another five years to support market efficiency. These actions are intended to provide stability for participants operating within the financial sector. Commissioner Simone Constant has recently emphasized that the regulator is prioritizing governance and transparency across the industry. She noted that enforcement action is a key tool for addressing conflicts of interest. The commission continues to monitor private credit funds and other high-risk participants to protect retail investors. In addition to infrastructure oversight, the regulator is examining how banks use artificial intelligence in lending processes. A previous report from the commission found that financial services firms were adopting new technology faster than their risk frameworks could adapt. The upcoming review will assess how these institutions evaluate consumer risks in an automated environment. Lender conduct is another area of focus for the commission in the coming months. The regulator plans to investigate how banks manage short-term variable pay for proprietary lenders and how they supervise brokers. This review aims to ensure that lending practices remain fair and competitive for consumers. These regulatory activities occur as the Australian banking sector faces rapid technological change and geopolitical uncertainty. The commission maintains that the sector plays a vital role in the daily lives of consumers and businesses. By enforcing these standards, the regulator seeks to mitigate potential risks to the broader economy. Administrative enforcement remains a central part of the commission's strategy to deter misconduct. Between July 2025 and June 2026, the regulator delivered 150 administrative outcomes across the financial and credit sectors. These actions are intended to disrupt rogue operators and maintain market integrity. Looking ahead, the commission will continue to monitor compliance across all regulated entities. The goal is to ensure that the financial system remains resilient against emerging threats. Market participants are expected to remain vigilant as the regulatory landscape continues to evolve.