Australian Securities and Investments Commission (ASIC) Chair Sarah Court discussed private credit stress, gaps in audit oversight and planned scrutiny of artificial intelligence (AI) in a keynote address at the Walkley Foundation’s business journalism awards finalist announcement in Sydney. Court emphasised that independent reporting extends the deterrent effect of regulatory action, subjects ASIC to scrutiny and can identify emerging misconduct. Information uncovered by journalists must nevertheless be tested against evidence before regulatory action can follow. In private credit, Court identified signs of stress in parts of the sector, including weaknesses in governance, transparency, valuations and conflict management. ASIC is working with administrators to trace AUD 3.4 billion lent to the Bathla Group through structures spanning more than 500 companies and more than 40 lenders, focusing on whether retail investors are affected. Private credit surveillance is under way and remains an enforcement priority, but ASIC is not seeking to replicate public market regulation. On auditing, Court reviewed ongoing surveillance of the Big Four firms and multiple inquiries into allegations involving KPMG. The existing framework largely addresses individual auditors and engagements, leaving some alleged conduct potentially outside ASIC’s remit. ASIC is advocating broader powers over audit firms and engaging with Treasury on reform. Court also reiterated AI scrutiny already identified in ASIC’s 2026–27 corporate plan and supervisory priorities. Over the coming year, ASIC will examine banks’ use of AI in customer services and decisions affecting customers, alongside its potential use in market manipulation through deepfakes and misinformation. Social media monitoring and market analysis will support that work. Firms remain accountable for their legal obligations and must ensure AI systems are secure, resilient and subject to effective human oversight.
Australian Securities and Investments Commission Chair reviews private credit risks, audit oversight gaps and AI scrutiny
Australian Securities and Investments Commission Chair Sarah Court reviewed private credit stress, gaps in audit oversight and planned AI scrutiny in a speech highlighting journalism’s role in deterrence and regulatory accountability. ASIC is tracing AUD 3.4 billion lent to the Bathla Group with administrators and seeking broader powers over audit firms. Court also reiterated planned reviews of banks’ AI use and AI-enabled market manipulation, stressing firms’ continuing accountability.