ASIC unveils key issues outlook for 2026

As pressures on consumers, markets and businesses intensify, ASIC has named the key issues on its radar to track major shifts across the financial system.

ASIC noted no issue was ranked in priority, but outlined 10 important areas it would dedicate time, resources and effort towards to ensure all areas captured by the watchdog were properly regulated.

The key issues outlined included increased retail client exposure to private credit markets, operational failures by super fund trustees leading to member harm, consumers losing their retirement savings through investments, advanced technology harming consumers and consumers/market confidence undermined by cyber-attacks.

Regulatory gaps, poor insurance claims handling, poor quality financial reporting, sustainability reporting and audit quality and increased risk appetite in the banking sector were also added to the list of ASIC’s key issues for 2026.

ASIC chair Joe Longo said the updated outlook of key issues came as continued cost-of-living strains for vulnerable Australians, rising debt and ongoing geopolitical tensions were adding volatility and uncertainty.

“At the same time, rapid advances in AI are transforming financial services and fuelling a surge in AI-powered cybercrime that is testing the resilience of companies and undermining public trust in AI-driven decisions,” he said.

“Global regulatory settings are also diverging, creating growing fragmentation that makes compliance more complex and increases the risk of uneven consumer protections.”

“Highlighting the key issues for 2026 helps direct attention to where risks are most likely to emerge and underscores where ASIC is focused to safeguard trust, integrity and confidence in Australia’s financial system.”

From the key issues highlighted, ASIC noted the three issues impacting the accounting industry they were set to home in on were advanced technology harming consumers, regulatory gaps related to emerging financial sector participants and poor-quality financial reporting, sustainability reporting and audit quality.

Longo said financial reports and audits were key to maintaining market confidence and informed investor and consumer decision making.

“ASIC is concerned with evidence it has found in superannuation financial reports of inconsistent investment disclosures, limited transparency on certain expenses, and insufficient audit evidence for valuations,” he said.

“ASIC is concerned with evidence it has found in superannuation financial reports of inconsistent investment disclosures, limited transparency on certain expenses and insufficient audit evidence for valuations.”

It was noted that the regulator was also seeing an increasing number of consumers facing risks from automated decisions, AI-driven interactions and scams amplified by technology.

Longo said this could be attributed to the rapid adoption of technology, which enabled new forms of conduct that exploited issues such as behavioural bias.

“As ASIC has found in research, there is a variable maturity in how businesses manage AI governance risks. While agentic AI can help people shop around for deals and avoid loyalty penalties, it can also compound risk given its capability to independently plan and act.”

ASIC noted it wanted to look into regulatory gaps with refreshed vigour this year as rapid innovation by or for people unfamiliar with financial assets continued to create risks such as unlicensed advice, misleading conduct and the exploitation of unclear regulatory boundaries.

“Where a business is currently legitimately unregulated, it is ultimately for the government to determine whether a new class of products or services should be brought within a licensing regime.”

“At the same time, some entities will actively seek to remain outside regulation, contributing to perceived regulatory uncertainty. As a result, ensuring clarity on licensing requirements and maintaining effective perimeter oversight will remain priorities for ASIC in 2026.”