In a National Press Club Q&A, Australian Securities & Investments Commission Chair Joe Longo set out ASIC’s near-term supervisory and reform focus on private credit and superannuation switching misconduct, linking innovation to clearer licensing expectations and stronger data, transparency and standards where market activity is currently opaque. Private credit was a central theme, with Longo pointing to identified “poorer practices” and “unattractive” conduct and calling on industry to develop standards, drawing on existing approaches in the United States and United Kingdom but adapted to local market features. He referenced a surveillance report covering 28 retail and wholesale funds that highlighted governance, transparency, valuation and credit management failings, with ASIC already issuing entity-specific feedback and not ruling out enforcement where conduct is close to illegal. The discussion also highlighted gaps in ASIC’s visibility, including that wholesale funds are not required to be registered, and framed improved data gathering as a way to reduce the risk of a destabilising “Minsky moment” in a sector estimated at around AUD 200 billion, while acknowledging the figure is uncertain. On superannuation, Longo described misconduct that has led consumers to rapidly switch from safer arrangements into high-risk settings, citing the unfolding First Guardian and Master Shield matters, and suggested introducing targeted “frictions” such as a short cooling-off period for certain transfers to slow decision-making without impeding ordinary switches. ASIC reported more than 40 investigations under way alongside court actions. He also reiterated that superannuation trustees remain legally responsible even where functions are outsourced, and called for more rigorous diligence by trustees that operate platforms over the products permitted on them. Longo separately said ASIC will need to approve any buyer of CEBO’s Australian business following the grant of its market operator licence in early October, with the sale process expected to take time.
Australian Securities & Investments Commission 2025-11-05
Australian Securities & Investments Commission signals push for private credit transparency and a cooling off approach to high risk superannuation switching
ASIC Chair Joe Longo emphasized supervisory focus on private credit and superannuation switching misconduct, calling for clearer licensing and stronger data transparency. He urged industry standards based on U.S. and U.K. models and highlighted governance failings in a report on 28 funds. Longo suggested cooling-off periods to mitigate high-risk superannuation switches and stressed trustees' legal responsibilities even when outsourcing functions.