Australia: Financial Services

When does a high default interest rate cross the line from legitimate compensation to an unenforceable penalty? A recent NSW Supreme Court case examines the principles governing default interest provisions in loan agreements, revealing the critical factors lenders must consider when structuring their interest rate terms. The decision provides essential guidance on what evidence lenders need to justify material increases in default rates and how courts will assess whether such provisions constitute genuine p

ASIC has intensified enforcement actions against Responsible Managers who fail to meet 'fit and proper' standards, raising critical questions about competency, character, and regulatory compliance in financial services.

The Australian Government has unveiled comprehensive reforms targeting consumer protections across superannuation and financial services, introducing stricter oversight of APRA-regulated funds, SMSFs, and managed investment schemes. These changes respond to recent high-profile investment failures and include enhanced trustee obligations, strengthened anti-hawking provisions, and modifications to the financial advice framework that could significantly impact compliance requirements for industry participants.

The recent NSW Civ­il and Admin­is­tra­tive Tri­bunal deci­sion in Nichol­son v The Own­ers – Stra­ta Plan No 104042 [2025] NSW­CATCD 202 pro­vides impor­tant...

AUSTRAC has released updated guidance for reporting entities regarding suspicious matter reports (SMRs), identifying areas where submissions could be improved to ensure high-quality...

Perfecting a security interest under the Personal Property Securities Act 2009 (Cth) (PPSA) is critical step for a secured party to ensure its security interest is not just enforceable against the grantor of the interest, but also against third parties. Perfection can occur by one of three ways: possession, control or registration on the PPS Register.

On 26 June 2026, the Federal Court of Australia delivered judgment in Australian Securities and Investments Commission v Mercer Superannuation (Australia) Limited [2026] FCA 832, ordering Mercer Superannuation (Australia) Limited (MSAL) to pay $10.3 million in penalties and $1.2 million in costs.

Australia's High Court has delivered a landmark ruling in favour of ASIC against Block Earner, finding that crypto yield products fall within existing financial services laws. The decision endorses an expansive approach to financial product definitions and marks the first time the High Court has examined crypto-assets under financial services legislation. Meanwhile, ASIC has extended its no-action relief for digital asset businesses to 30 September 2026, and Australia's Travel Rule for virtual asset transfe

The High Court of Australia has delivered a landmark ruling in ASIC v Web3 Ventures Pty Ltd, finding that Block Earner's fixed-yield cryptocurrency product constitutes a financial product under the Corporations Act. This decision overturns the Full Federal Court's earlier judgment and marks the first time Australia's highest court has examined crypto-assets under financial services laws, with significant implications for how digital asset products are regulated.