Australian Treasury outlines UK cooperation on private markets, operational resilience and AI

The Australian Treasury reported on the second UK–Australia Joint Financial Regulatory Forum, held on Oct. 27, 2026, outlining cooperation on private market risks, operational resilience and financial innovation. Both sides agreed to continue sharing supervisory information on private markets, cooperate on the operational resilience implications of artificial intelligence (AI) and explore cooperation on AI in financial advice. Private market discussions focused on monitoring vulnerabilities as the sector expands, including asset valuation and governance. Existing UK work includes the Bank of England’s System Wide Exploratory Scenario on private markets and supervision of banks’ and insurers’ exposures to private equity, private credit and funded reinsurance. Australia highlighted superannuation funds’ growing role in unlisted assets and supervisory scrutiny of their valuation and governance practices. Proposed Australian reforms would improve data collection for managed investment schemes and regulatory visibility of private credit. On operational resilience, participants compared the UK’s Critical Third Parties regime with Australia’s prudential requirements and oversight of payment systems and financial market infrastructures. They considered how comparable regimes could support effective oversight while reducing unnecessary duplication for global providers. Cooperation on AI’s operational resilience implications will continue bilaterally and through the G20 and Financial Stability Board. Separately, both sides agreed to explore cooperation on AI in financial advice, including approaches to balancing access and consumer protection.