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In this Funds Update for 19 December 2025:
- ASIC releases updated Regulatory Guide 181 AFS licensing: Managing conflicts of interest
- ASIC's continuing focus on compliance with financial reporting obligations
- ASIC extends transitional FFSP relief until 31 March 2027
- ASIC releases catalogue summarising key legal obligations in the private credit sector
ASIC releases updated Regulatory Guide 181 AFS licensing: Managing conflicts of interest
On 16 December 2025, ASIC released an updated Regulatory Guide 181 AFS licensing: Managing conflicts of interest (RG 181).
The updated RG 181 replaces guidance issued in August 2004 and makes substantial revisions to the 2004 guidance. The updates are intended to assist licensees fulfil their obligations and have robust and tailored conflict management strategies in place.
The new RG 181 includes updates on:
- how the law applies to conflicts of interest, including the scope of the conflicts management obligation and links to other related obligations. Information has been updated with current case law references;
- the types of conflicts Australian financial services licence (AFSL) holders should identify and manage, including an example of conflicts arising in the context of private credit funds;
- the need for robust, tailored arrangements to manage conflicts, including what ASIC considers amounts to adequate arrangements to manage conflicts;
- practical steps for effective conflict management; and
- a non-exhaustive 'catalogue' of related legal obligations and information relevant to conflicts management for AFS licensees, representatives, or AFS licence applicants.
The updated RG 181 can be found here.
ASIC's continuing focus on compliance with financial reporting obligations
Following its increased focus on non-lodgement of financial reports, ASIC has issued infringement notices, totalling over $2.2 million, to 12 large proprietary companies for allegedly failing to lodge their FY 24 audited financial reports on time. Financial reporting misconduct including failure to lodge financial reports is one of ASIC's enforcement priorities for 2026.
ASIC has also suspended a licensee's AFSL for a number of failings including failing to lodge required financial statements and an auditor opinion for FY 2024.
We previously reported on ASIC's 2026 enforcement priorities in our Funds Update on 21 November 2025.
ASIC extends transitional FFSP relief until 31 March 2027
On 5 December 2025, ASIC has announced a further 12 months extension of the transitional arrangements for the current foreign financial service provider (FFSP) AFSL exemptions (the passporting exemptions and limited connection exemption) until 31 March 2027. These FFSP exemptions were previously set to expire on 31 March 2026.
The extension is effected by ASIC Corporations (Foreign Financial Services Providers) Instrument 2025/798 which remakes the relief previously provided under ASIC Corporations (Repeal and Transitional) Instrument 2016/39.
On 26 November 2025, The Government proposed a new bill to replace the passporting exemptions and limited connection exemption with new FFSP exemptions called the 'comparable regulator exemption' and the 'professional investor exemption'. These provisions are contained in the Treasury Laws Amendment (Genetic Testing Protections in Life Insurance and Other Measures) Bill 2025 (Bill). The Bill is currently before Parliament and been referred to the Senate Economics Legislation Committee for inquiry with submissions due by 21 January 2026, and a reporting date of 26 February 2026.
You can read our update on these FFSP exemptions here.
ASIC releases catalogue summarising key legal obligations in the private credit sector
ASIC has released a catalogue summarising key legal obligations and regulatory guidance to help private credit fund operators more easily identify and comply with existing regulatory obligations. This follows from ASIC's report Advancing Australia's evolving capital markets report: Discussion paper response (REP 823) and forms part of ASIC's roadmap for the private credit sector.
We previously reported on ASIC's capital markets roadmap and private credit surveillance reports in our Funds Update of 7 November 2025.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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