In its key issues outcome paper 2025, the regulator has highlighted one of its main concerns in the coming year is unsuitable superannuation advice resulting in adverse consumer outcomes.
It said it would continue to warn Australians about this conduct and take enforcement action where it saw misconduct exploiting superannuation savings.
“As more Australians approach retirement, there is higher demand for good quality retirement-related financial advice, including around managing longevity risk and ensuring a sustainable income stream,” the paper reads.
“In recent work, ASIC has observed considerable volumes of superannuation fund inflows into high-risk investments, including property investments, via superannuation platforms and significant payments of superannuation monies to lead generation businesses. High-pressure sales tactics and the use of social media algorithms to target receptive audiences has enabled rapid growth in these types of business models.”
The paper drew from the regulator’s active monitoring of the regulatory environment that informs it about major issues facing Australia’s financial system. From these observations, the corporate regulator identified the most significant current, ongoing and emerging issues within its regulatory remit in 2025.
“These issues impact a broad range of sectors ASIC regulates, but most importantly they have the potential to impact the safety, integrity and trust of Australia’s financial system,” it reads.
“Increased market volatility, geopolitical changes, the global accumulation of debt to drive growth, perceived and real inequality of wealth, shifts in the way capital is invested, and advances in artificial intelligence, data and cyber risk, are all key factors influencing the way ASIC views the issues facing Australia’s financial system.”
One of the other key areas in which ASIC would be focused is the role of superannuation trustees and their commitment to fund members.
According to the regulator’s latest figures, around 3 million Australians will become eligible to draw from their superannuation in the next 10 years, with at least $750 billion of funds shifting from the accumulation phase to the retirement phase.
“As more members enter the retirement phase, they will have more frequent, and more complex, interactions with their superannuation funds so trustees will need to ensure they can meet members’ changing needs.”
“Between 2021 and 2023, complaints to the Australian Financial Complaints Authority about superannuation funds’ service provision (complaints in the ‘service’ issue category) doubled. ASIC will publish findings from a review of member services and will not hesitate to take enforcement action where appropriate.”
The corporate regulator will lead discussions on issues key to the ongoing and future success of Australia’s capital markets and seek feedback on whether its regulatory settings and supervision approach need to adapt in light of changing market dynamics.
“Domestic and international regulators and policy-makers are taking steps to review and respond to issues arising from these changes and to consider potential vulnerabilities and harms that may emerge with growth in private markets.”
“Both public and private markets are important to our economy and play a role in generating wealth. Through superannuation investments, many Australians have indirect exposure to private assets. Private markets operate differently than public markets and are inherently less transparent.”
It said it would increase its focus on private markets through surveillance work and review the governance processes and practices of a sample of responsible entities of retail private credit funds, including asset valuation and liquidity management practices.
