On 27 January 2026, the Australian Securities and Investments Commission (ASIC) published its Key Issues Outlook 2026 (2026 Outlook). 

Overview

ASIC is tracking significant shifts across Australia’s financial system as pressures on consumers, markets, and businesses intensify. The regulator has identified various system-wide forces that cut across all sectors it regulates and is directing attention to where risks are most likely to emerge. 

Key issues identified

The 2026 Outlook highlights ten key issues for 2026 (unranked):

Retail exposure to private credit markets: Retail investment thresholds as low as $2,000 are enabling participation in inherently less transparent and in some cases more complex products, raising risks of mis-selling and unsuitable product selection without adequate disclosure

Superannuation fund operational failures: Member services problems —including claim processing delays, poor IT infrastructure, and fraud risks — pose significant risks to members as more than $750 billion is expected to move from accumulation into retirement phases and nearly three million Australians become eligible to access their super over the next decade.

High-risk products and inappropriate financial advice: Consumers are losing retirement savings because of aggressive marketing and “cookie-cutter” advice models which are driving unsuitable switches into complex, high-risk investments that are often unsuitable for average consumers. ASIC currently has 12 related court cases underway to hold people and organisations to account. 

Technology-driven consumer harm: Risks from automated decisions, AI-driven interactions, and scams amplified by technology are increasing. ASIC has found in research, there is variable maturity in how businesses manage AI governance risks. Agentic AI presents particular concerns given risks around its capability to plan and act independently. 

Cyber risk and operational resilience: Increases in cyber incidents across sectors underscore the need for robust risk management frameworks, resilience testing, and third-party vulnerability management. 

Regulatory perimeter gaps: Rapid innovation by or for people unfamiliar with financial services, particularly in digital assets, payments, and AI continues to create risks including unlicensed advice and misleading conduct. ASIC will prioritise clarity on licensing requirements and perimeter oversight. 

Insurance claims handling failures: Recent disasters in Victoria and Queensland highlight pressures on insurers after severe events which lead to poor consumer outcomes, including delays, errors, and poor communications with consumers. ASIC has commenced court proceedings concerning serious claims handling failures to hold the sector to account

CHESS replacement risk: The first phase of the CHESS (Clearing House Electronic Sub-register System) replacement is due this year. Delays or failures in the replacement project pose a major risk to market stability and investor confidence, heightened by ongoing reliance on ageing technology which may lead to operational harms. 

Financial and sustainability reporting quality: ASIC is concerned with evidence it has found in superannuation financial reports of inconsistent investment disclosures. ASIC also considers that there are risks of misleading or incomplete disclosures as mandatory climate reporting expands. 

Banking sector risk appetite: ASIC notes that historic low net interest margins may be driving riskier strategies, and could incentivise relaxed credit assessments and aggressive marketing towards higher-risk products. 

Next steps

For further information, see the ASIC Corporate Plan 2025–26.