The Capital Bite

The Australian share market is expected to have a muted open on Monday due to the Reserve Bank of Australia's (RBA) anticipated interest rate hike on Tuesday. The RBA's decision comes amid persistent inflation and rising global energy prices, with oil prices increasing by over 1% after US President Donald Trump rejected an Iranian peace proposal. In corporate news, Northern Star Resources has rejected a takeover proposal from Gold Fields, offering 0.3125 Gold Fields shares plus AU$7.25 in cash per share. The RBA's rate hike is expected to further tighten the economy. Australia's benchmark index fell 0.4%, or 37 points, to close at 8,665 on September 25.

The headline suggests that the Australian government plans to reform existing laws governing financial institutions through a parliamentary process rather than relying on court decisions. This implies that the government aims to proactively address perceived flaws in current legislation, potentially driven by concerns over regulatory burdens or inconsistencies. The move may indicate a shift towards more collaborative governance between lawmakers and industry stakeholders.

Research by James Graham and Avish Sharma found that each standard interest rate increase causes an immediate 5% reduction in home purchases, leading to a 0.3 percentage point decline in the home ownership rate within four years. This translates to up to 30,000 households being locked out of home ownership for more than a decade. The research suggests that the RBA's monetary policy actions could reduce home ownership by more than Treasury forecasts the federal government's investment tax changes will boost it.

The Reserve Bank of Australia (RBA) has prepared to put a 9.5 per cent pay offer to a fresh staff vote, despite employees rejecting a near-identical deal in July. This move comes as RBA governor Michele Bullock has repeatedly called for wage restraint across the economy to help bring inflation under control. The RBA's decision to revisit the pay offer is set to be taken to the Fair Work Commission.

The Reserve Bank of Australia (RBA) governor Michele Bullock has stated that higher unemployment is needed to rein in inflation, which could lead to a double rate rise before Christmas. This comes as the RBA's priority shifts from economic growth to getting inflation back to target. Meanwhile, Treasurer Jim Chalmers revealed a multibillion-dollar blowout in debt servicing costs due to rising interest rates, and business insolvencies hit a record high in August.

Westpac has conducted an internal audit of its small business unit after a spate of risk management issues were found, including employees breaching loan authority approval limits and not properly assessing fraud risks. The bank's executives have been scrambling to address compliance issues since April. To address these concerns, Westpac will overhaul the way pay and bonuses are structured for small business bankers. This move is aimed at appeasing the prudential regulator. The internal audit was conducted after an internal review found a group of employees breached their loan authority approval limits.

ASIC has tightened its regulations on AI trading in response to concerns over flash crashes, which can occur when automated trading systems rapidly buy and sell securities, causing market volatility.

RBA governor Michele Bullock has warned that people may need to lose their jobs for inflation to be brought down, highlighting the bank's growing concern about inflation overshooting its target range and requiring further monetary policy tightening.

The Australian Securities and Investments Commission (ASIC) has forced Remara, a private credit firm with a $3 billion loan book, to stop accepting money in one of its funds, citing inadequate disclosure of risks. The regulator targeted three products in the Remara Cash Management Fund and warned that it is aggressively watching firms in the private credit sector, focusing on risk disclosure and valuations.

ASIC has decided to litigate to clean up Australia's private credit market, which is under stress due to higher-for-longer inflation and interest rates, combined with a housing market downturn. The market, valued at $200 billion, is heavily exposed to retail property development. This shakeout goes beyond cyclical challenges and highlights the need for regulatory action.

The Australian Securities and Investments Commission (ASIC) has multiple investigations underway into private credit, prioritizing enforcement to clean up the industry before it becomes even bigger and more systemically important.

ASIC commissioner Simone Constant has warned that the 'clock is ticking' on private credit lending standards in Australia, following the collapse of NSW property developer Bathla, which had exposure to nine different loans from CVS Lane First Mortgage Fund and CVS Lane Property Finance Fund. The sector has grown by an estimated 500% over the decade, but governance, controls, and underwriting standards have not kept pace with this growth. ASIC has been scrutinizing private credit for 18 months, releasing two reports that highlighted poor practices such as opaque remuneration and fee structures, inadequate governance arrangements, and poor valuation practices. The commissioner will speak today at a gathering hosted by the Commercial and Asset Finance Brokers Association, emphasizing the need for strong governance, effective oversight, clear disclosure, and accurate valuations in private credit.

ASIC commissioner Simone Constant has announced that the regulator is 'beyond warnings' with private credit firms inflating fees by refusing to cut the value of distressed loans in Sydney's west, where Bathla, a residential developer, has collapsed.

The Albanese government is considering proposals that would allow US artificial intelligence corporations to 'train' on Australian artists' work without their consent, sparking concerns about the theft of cultural heritage and creators' rights. This move has been met with opposition from authors like Richard Flanagan, who argue that it would be a betrayal of Australia's sovereignty and culture. The government claims that this is necessary for investment in AI, but critics say that no other country has signed up to such an agreement. The proposal includes allowing artists to 'opt out' of having their work used for AI training, but opponents argue that this is inadequate. The deal would make Australia a hub for AI regulation similar to the Cayman Islands' reputation as a tax haven.

The China ASIC market is projected to grow from USD 6.0 billion in 2026 to USD 8.4 billion by 2031, representing a compound annual growth rate of 7.0%, driven by semiconductor self-sufficiency initiatives, artificial intelligence infrastructure investment, electric and intelligent vehicle production, 5G network deployment, and hyperscale data center development. The market expansion is being supported by government policies such as the 'Made in China 2025' strategy, which encourages state-owned enterprises to replace imported components with locally designed semiconductors. Chinese automakers are collaborating with local chip design companies to develop ASICs for electric and intelligent vehicles, while domestic internet and cloud service providers are investing in custom AI accelerators. The market is also driven by Huawei's reported development of the Ascend 910D AI chip in April 2025. However, export restrictions affecting advanced semiconductor manufacturing equipment and electronic design automation software remain a structural challenge.

The Australian Securities and Investments Commission (ASIC) is investigating Gemi Investments, a Sydney-based non-bank lender led by Justin Epstein, Michael Cooper, and George Fleming, over its lending practices to bankrupt publican Jon Adgemis. The firm lent nearly half a billion dollars to Adgemis before his business collapsed. In response, ASIC requested information from Gemi Investments, which the company is now seeking to have set aside through legal action. This marks ASIC's first known inquiry into private credit funds since launching a crackdown on the sector in August this year. The firm took legal action against ASIC in August, seeking to have the request for information set aside.

Reserve Bank of Australia board member Ian Harper revealed that nearly one-third (1/3) of monetary policy decisions over the past decade were split votes, contradicting assumptions of central bank unanimity. The split votes occurred under Reserve Bank governors Michele Bullock and her predecessors Philip Lowe and Glenn Stevens. According to Harper, there was 'very vigorous' debate among the nine board members at these meetings. This challenges a 2023 independent review's suggestion that part-time members failed to challenge the central bank's leadership.

APRA has started asking questions about the recent collapse of Bathla, a $3.4bn financial institution, which suggests that regulators are investigating potential failures in risk management or governance that contributed to its downfall.

The Australian government has released the Domestic Gas Reservation Bill 2026 for consultation, proposing to reserve up to 20% of gas exports for domestic use to avoid possible shortfalls of up to 140 petajoules by 2030. The bill establishes a framework for how the reservation scheme will operate, including cost recovery and compliance mechanisms. Santos Chief Executive Kevin Gallagher welcomed the policy but recommended replacing the 'must sell' provision with a 'must offer on commercial terms' requirement. The licence application process will start from January 1, 2027, with the domestic supply obligation starting from January 1, 2028. RBC Capital Markets views the legislation as welcome relief to smaller cap Australian domestic gas-focused stocks.

Reserve Bank of Australia assistant governor Sarah Hunter has acknowledged that the housing market slowdown is affecting the broader economy and dampening new home construction, but rejected claims it would push the country into recession. Despite this, Hunter suggested that interest rates may still be increased when the RBA board meets later this month due to persistent cost increases.

Sydney's data centre operators are being told by Transgrid that they should cover the costs of network upgrades, marking a significant shift in the financial burden for the industry. This development comes after years of expansion and growth in the sector, with Transgrid citing the increasing demand on its infrastructure as the reason for the change. The move is expected to impact data centre operators such as Equinix, Digital Realty, and Interxion.

The Reserve Bank of Australia (RBA) has a significant influence over the housing market due to its control over interest rates. The RBA's rate-setting board cannot completely ignore the current housing slump when deciding whether to raise interest rates again, as it is an economic indicator that shows rate hikes are having a real impact on slowing down the economy. According to independent economist Saul Eslake, falling house prices could be helpful in getting inflation down by reducing new housing prices and making people feel poorer, leading them to spend less.

ASIC has yet to probe ex-KPMG partners serving on bank boards, suggesting a lack of scrutiny into potential conflicts of interest between the auditing profession and banking industry leadership.

ASIC is reviewing over 550 internal complaints of alleged misconduct at the big four auditing firms, including KPMG, as part of its surveillance efforts. The corporate regulator has expanded its investigation into KPMG to cover the conduct of people and entities close to the firm. Labor senator Deborah O'Neill's joint committee on corporations and financial services heard this information during a parliamentary hearing.

ASIC revealed that there have been 551 complaints about alleged audit misconduct by the big four accounting firms - KPMG, PwC, EY and Deloitte - dating back to July 1, 2023. The regulator is investigating these complaints and has used its compulsory information gathering powers to obtain material related to the allegations. ASIC chair Sarah Court stated that they don't know the severity of the issues, but are looking into each complaint to determine if further action is needed. Senator Barbara Pocock questioned whether KPMG had genuinely turned over a new leaf after previous whistleblower complaints were made. The regulator is also being asked to broaden its investigation period to capture historical complaints.

Revelations about KPMG's cheating, deception, and dishonesty in order to win work should be sobering news for investors, who depend on auditors to be the watchdogs of agreed accounting standards.

Mineral Resources has announced that ASIC's investigation into the company and its founder Chris Ellison has concluded, with no enforcement action to be taken by the regulator. The investigation was related to tax evasion allegations, related-party transactions, and the misuse of company resources. Ellison had previously made an 'error of judgment' in failing to report his personal tax and repaid $3.8 million in penalties. He had also vowed to support the board's search for a replacement within 18 months. The company will implement a three-stage succession plan with a new managing director expected by mid-2026.

The Australian Securities and Investments Commission has ended its investigation into share trading and governance issues at Mineral Resources, a 2-year probe that began in 2024 after The Australian Financial Review reported a tax evasion scheme established by Chris Ellison, the miner's billionaire founder, which cost shareholders more than $7 million.

ASIC has cleared the boards of Ellison and Mineral Resources (MinRes) over financial scandals, allowing them to continue in their roles without restriction.

AustralianSuper will settle with ASIC and admit it broke financial services laws by failing to pay out thousands of death benefit claims to families of deceased members in a timely manner. The $410 billion pension giant has been involved in the issue, which affects its deceased member's beneficiaries. According to sources, AustralianSuper was in the final stages of sketching out agreed facts with ASIC to be lodged with the Federal Court on Monday. Two sources with knowledge of the issue commented anonymously to discuss matters that are before the court. The settlement will result in AustralianSuper admitting misconduct.

ASIC's inquiries into irregular trading in micro-caps have widened to at least three stocks and two brokers, following a visit by the Australian Federal Police to Evolution Capital's Sydney offices last week.

BUSSQ, the Queensland construction sector superannuation fund managing almost $7.5 billion in retirement savings, has failed APRA's annual MySuper performance test for the first time since 2023, requiring it to notify members about the poor performance of its default product.

More than 1.63 million Australian renters are paying hundreds of dollars a year for fixed gas connection fees without the power to disconnect, according to advocacy group Rewiring Australia. The group argues that this financial cost should be shifted to landlords who have the power to electrify homes. This 'regulatory quirk' is estimated to result in $2.6 billion in potential energy savings per year for renters. Australian households are increasingly ditching gas, with 11,000 fewer gas connections and 62,000 more electricity connections in the six months to September last year. Rewiring Australia is calling on the government to treat fixed gas connection fees like water bills, where landlords pay the fixed cost and tenants only pay usage costs.

The Australian Securities and Investments Commission (ASIC) raided the Sydney offices of broker Evolution Capital on Wednesday, focusing on trading in Vection Technologies, a virtual reality software business capitalized at $45 million that sells 3D modelling, augmented reality, and virtual reality software.

ASIC has launched its new corporate plan, focusing on scams and AI-powered deep-fakes that are fleecing Australian consumers. The regulator aims to slash red tape for business while cracking down on corporate behaviour causing harm. ASIC upped the number of formal investigations in the last financial year, including into scandal-plagued accountants KPMG. The plan also targets scams and the rise of AI-powered deep-fakes. ASIC Chair Sarah Court emphasized the need for a more collaborative approach between regulators and businesses to prevent harm to consumers.

The Lighting Council of Australia (LCA) tested 131 lighting products available on online marketplaces like Temu, AliExpress, Amazon, eBay, and Kogan, finding that almost three-quarters (73%) failed to meet Australian standards. Three downlights underwent laboratory testing and all failed safety tests, catching fire when exposed to heat and flame. The LCA has called for online retailers to pull non-compliant products from their Australian websites and is seeking more regulatory powers and accountability.

The Australian Bureau of Statistics reported that headline inflation rose to 3.5% in the year to July, driven by housing and food price increases, while the underlying inflation rate remained at 3.6%. Economists warn that this data heightens the risk of a Reserve Bank of Australia (RBA) interest rate hike at its September meeting, with AMP economist My Bui stating that it is 'an unfortunate kick in the guts' for an already ailing economy.

A 16-year-old girl who held up a taxi driver at knife point and stole the vehicle in Dandenong has been spared jail by a Melbourne court under Victoria's 'Adult Time for Violent Crime' laws. The girl was arrested just hours after the new laws came into effect on February 27, 2026, and charged with aggravated carjacking. She will be subject to an 18-month youth supervision order instead of the minimum three-year jail sentence. Judge Scott Johns cited 'exceptional circumstances', including the girl's lack of stability and safety in her life, as well as her PTSD and unmanaged ADHD, as reasons for the lenient sentence.

ASIC has defined private credit to clarify the grey area between traditional lending and debt securities, aiming to regulate non-bank lenders that have grown in popularity. This move is a response to concerns over consumer protection and financial stability as these lenders have expanded their operations. The definition will impact the business models of several players in the market.

Veteran Republican political activist Grover Norquist has criticized Australia's News Bargaining Incentive policy, calling it a 'big deal' for the Trump administration and predicting that Canberra will face a trade investigation and potential penalties under Section 301. The policy applies a 2.5% tax on local advertising revenue of tech giants such as Meta, Google, and Microsoft unless they strike deals with local media owners. Norquist compared the policy to Britain's attempt to tax American colonies in the 1700s, leading to the American Revolution. Republicans in Congress are joining calls for action against Australia, including congressman Scott Fitzgerald who introduced legislation to shield US tech companies from foreign regulations. The White House has labelled the policy 'foreign extortion' and raised it with Trade Minister Don Farrell nearly two weeks ago.

The headline 'Is ASIC at fault?' suggests that the Australian Securities and Investments Commission (ASIC) made a critical error in its regulatory oversight or enforcement actions, which significant consequences for investors, consumers, or financial institutions. This implies that ASIC's performance has been scrutinized, due to a high-profile case or a series of complaints about its handling of specific issues. The article explores the allegations and the potential impact on ASIC's reputation and effectiveness.

A woman has lost her $300k life savings due to alleged failures by the Australian Securities and Investments Commission (ASIC) to detect red flags in a financial transaction. This incident highlights concerns about ASIC's effectiveness in protecting consumers from financial harm.

The Federal Court has endorsed an agreement between Netwealth and ASIC for compensating members of the Netwealth Superannuation Master Fund who lost money in the collapse of the First Guardian Master Fund. As part of the settlement, Netwealth admitted breaches of Corporations Act obligations, but ASIC will not seek court penalties. Netwealth has paid around $101 million into affected members' super accounts, restoring their net capital investment. The company funded this compensation through cash and debt, which will impact its FY26 profit by $71 million. Netwealth also announced an enforceable undertaking with APRA to strengthen investment governance.

APRA's announcement signals a regulatory push to address the growing use of artificial intelligence in Australian banking, with plans aimed at ensuring AI systems are secure, reliable, and compliant with existing regulations.

The Australian Prudential Regulation Authority (APRA) has imposed stricter licence conditions and a $70 million remediation program on Bendigo and Adelaide Bank due to its failure to 'deliver improvement' on non-financial risks. This decision affects CEO Richard Fennell, who was promoted two years ago with the task of cleaning house at the bank. The regulator's announcement highlights that the bank's problems pre-date Fennell's tenure as CEO.

APRA has imposed tougher licence conditions on Bendigo and Adelaide Bank due to deficiencies in its controls against non-financial risk, requiring an expensive uplift.

ASIC has warned of a steep rise in scammers using deepfakes of celebrities and politicians to lure Australians into fake investments. The corporate watchdog's warning comes as the federal treasurer has hit out at calls from One Nation for a rethink of the country's superannuation system. Meanwhile, US President Donald Trump is scaling back joint military exercises with South Korea, calling them a hostile signal to North Korea.

The Australian Securities and Investments Commission (ASIC) has warned that AI deepfake investment scams are becoming more common and harder to detect, posing a significant threat to investors.

ASIC has issued a notice of initial substantial holder under Form 603 for Market Index's data suppliers, FinTech Equity Pty Ltd, which owns the Market Index website and has an Australian Financial Services Licence (AFSL) #521588.

Bendigo Bank has been fined $8 million by APRA for compliance failures, indicating a breach of regulatory requirements that involves shortcomings in risk management, governance, or consumer protection. This penalty reflects the bank's failure to meet APRA's expectations, which contributed to systemic risks or harmed customers. The fine is a significant blow to Bendigo Bank's reputation and financials.

ASIC has launched a finance crackdown on WA operators, targeting those who have been using lock-in contracts to exploit consumers. The Australian Securities and Investments Commission (ASIC) has identified several businesses in Western Australia that are allegedly using unfair contract terms, including lock-in contracts, to charge customers high fees. ASIC is taking action against these operators, with the goal of protecting consumers from financial harm. The crackdown comes after a review of industry practices revealed widespread use of lock-in contracts, which can leave customers trapped in long-term agreements. ASIC has not specified how many businesses are involved or what specific actions will be taken.

Tony Hartnell, the first chairman of ASIC, has passed away. He was remembered by his successor Alan Cameron as 'the sine qua non' for the establishment of ASIC, indicating that without him, the organization may not have come into existence. Hartnell's leadership and legacy are being honored by those who worked with him, including Cameron, who expressed a 'very high regard' for him. The article highlights Hartnell's unique personality and characteristics, such as his love of racing horses and long lunches, but also emphasizes his importance to the development of ASIC. His passing marks the end of an era in Australian financial regulation.

Pharmaceutical giants Eli Lilly and Novo Nordisk have been running ads in Australia that skirt the law by promoting their prescription weight loss medications without directly naming them. The 'disease awareness' campaign features Australians struggling with weight loss talking to camera, before encouraging viewers to 'talk to your doctor'. This approach is similar to US-style advertising of prescription medications, which is banned in Australia. Eli Lilly's ad campaign, 'We Won't Weight', has been running across television and radio, as well as through public place ads and online media. The company also sponsored Oprah's live event tour of Australia last year. Novo Nordisk's similar campaign, 'Tried Everything?', featured Australians listing off various exercise regimes or diets they have attempted before urging viewers to talk to their doctor.

Antony Catalano stood down from the board of Australian Community Media (ACM) in August after being charged with assaulting, imprisoning and threatening to kill a woman at his St Kilda penthouse. He apologized and took six months off work, but his case has not yet gone to trial. His return to ACM is expected in about a month, which may not be well-received by staff who voted no confidence in him.

ASIC has found that one in three small business bosses are unaware of their legal risk and obligations, highlighting a significant knowledge gap among SMEs.

ASIC has issued a warning about the risks of prediction markets, which are illegal in Australia but have become popular overseas, with some online platforms worth tens of billions of dollars.

ASIC has been probing the third-party referral programs of Commonwealth Bank, Westpac, and ANZ after raising concerns over the banks' vetting of accountants, lawyers, and real estate agents involved in defrauding them. The investigation follows CBA's discovery of $1 billion in fraudulent loans, which led to more than $3 billion of fraud being identified across the sector. ASIC internally raised the issue only three times in the previous four years before escalating its probe. An internal memo titled 'Loan Fraud at Major Banks' was circulated on 30 January, highlighting concerns over inadequate controls to vet third parties involved in defrauding the banks. The group regularly refers borrowers to CBA, Westpac, and ANZ via long-running but controversial referrer or introducer programs.

The Australian Securities and Investments Commission (ASIC) has launched Federal Court proceedings against audit firm Auditeo Australia, its sole director and shareholder Ajm Didarul Islam Khan, and contractor auditor Brian Robert Taylor, alleging that their unqualified reports on the First Guardian Master Fund's finances were materially false or misleading. The fund held $541.6 million in funds under management as at 30 June 2024, but liquidators were appointed a little over nine months later due to its collapse. ASIC alleges that the audit firm and auditors failed to conduct proper financial audits, did not verify assets, and audited against the wrong compliance plan for part of FY22 and all of FY23. The regulator is pursuing action under section 1308(5) of the Corporations Act, which makes it an offence to give information or a document to ASIC that is materially false or misleading. The alleged failures had a devastating impact on investors, with losses potentially as high as $446 million for over 6,000 Australians.

RBA chief economist Sarah Hunter has not ruled out an interest rate rise this year, according to a 'fireside chat' moderated by Barrenjoey chief economist Jo Masters and ABC business editor Michael Janda. The discussion highlighted that an interest rate rise can't be ruled out due to the current economic conditions. The analysts emphasized the importance of monitoring inflation rates, employment data, and other key indicators in determining the future direction of interest rates. The RBA's stance on interest rates remains a crucial factor for Australian households and businesses, particularly those with variable-rate loans or investments sensitive to interest rate changes. Masters and Janda provided context and analysis on what was said during the 'fireside chat'.

ASIC's crackdown on interest rip-offs extends to private credit, targeting lenders who charge exorbitant rates to vulnerable borrowers, focusing on high-interest personal loans and credit cards.

ASIC chair James Shipton has told banks to put their customers first, emphasizing the importance of prioritizing customer needs over profits in a speech. This message comes as ASIC continues to monitor the banking sector's response to recent scandals and controversies. The ASIC chair stressed that banks must be transparent and accountable in their dealings with customers, and that this is essential for maintaining public trust. Shipton also highlighted the need for banks to adopt a customer-centric approach, recognizing that their reputation and long-term success depend on building strong relationships with their clients.

ASIC chair James Shipton has urged banks to put their customers first, emphasizing the importance of prioritizing customer needs over profits. This message comes after a series of scandals and controversies surrounding Australia's major banks. Shipton stressed that banks have a responsibility to act in the best interests of their customers, rather than just focusing on making money.

One Nation's Queensland division has failed to lodge audited financial statements for the years 2022/2023, 2023/2024, and 2024/2025, prompting a warning from the Office of Fair Trading that it will trigger an investigation if not resolved within three weeks. The party's state division president, Pauline Hanson, has lodged overdue annual returns but omitted the required audited financial statements. If the issue is not addressed, it could lead to a small fine for Hanson or other party officials and potentially even cancellation of the Queensland division's registration. This development comes as One Nation faces scrutiny over its finances and donations after an extraordinary rise in polls. The party has been given until 18 August 2026 to lodge the outstanding financial statements.

ASIC found that millions of Australians who use mortgage offset accounts to reduce interest costs on their home loans have missed out on millions in savings due to failures by banks. The regulator examined eight banks representing over 70% of Australia's home loan market and discovered weaknesses across all of them in how offset accounts were set up, monitored, and managed. Reports show that AMP, ANZ, CBA, Credit Union Australia, HSBC, ING, Macquarie, and Westpac collectively paid more than $55 million in compensation for offset-account failures between September 1, 2023, and August 31, 2025.

APRA forced a banking start-up backed by Felix Lee, the 25-year-old son of a Chinese billionaire, to give up its licence after it pushed the bank to reduce Lee's shareholding. The regulator intervened in response to concerns about the size of Lee's stake. This decision comes as Lee is facing new scrutiny following his hosting of Prime Minister Anthony Albanese at a fundraising dinner at his parent's Point Piper residence last week.

The Australian unemployment rate has held steady at economists' expectations, according to the latest data from the Australian Bureau of Statistics. This development is being closely watched ahead of the Reserve Bank of Australia's (RBA) interest rate decision next month. Meanwhile, some Australian small businesses have received reimbursements from the US government for money collected on tariffs imposed by the Trump administration. The US continues to face a 'national emergency' in trade matters and another round of tariffs is expected.