According to outgoing Australian Securities and Investments Commission (ASIC) chair Joe Longo, there are a range of “system-wide forces” impacting Australian investors and the broader public.
Releasing the regulator’s key issues outlook for the coming year, Longo said this “helps direct attention to where risks are most likely to emerge and underscores where ASIC is focused to safeguard trust, integrity and confidence in Australia’s financial system”.
High on the list – which ASIC noted is not ranked – is the ongoing fallout of the Shield and First Guardian scandal that has seen as much as $1.2 billion of retirement savings put at risk.
Specifically, ASIC is concerned about consumers losing their super through “investments in high-risk products, including as a result of high-pressure sales tactics and inappropriate financial advice”.
“Aggressive marketing, lead‑generation and ‘cookie‑cutter’ advice models have been driving switches of superannuation into complex, high‑risk investments that are often unsuitable for average consumers, for example through certain managed investment schemes,” Longo said.
“ASIC is working closely with government and consumer groups to address legal and regulatory gaps, and deliver education campaigns to empower Australians to better identify risks to their retirement savings.
“While the pathway to compensation can be uncertain when these schemes collapse, ASIC has 12 court cases underway related to the Shield and First Guardian matters to hold people and organisations to account.”
The court action that the regulator has taken relating to the collapses has been wide-ranging, from the responsible entities themselves to some of the financial advisers, through to the super fund trustees, licensees, and even the first action against a research house.
In a submission to the parliamentary joint committee on corporations and financial services late last year, ASIC said “further action is increasingly likely as we continue our investigations”.
“Our investigations into these high-risk super investment matters are complex. They include numerous lines of inquiry and a large number of entities and individuals; from lead generators to financial advisers, advice licensees, superannuation trustees, the research house, auditors and the operators of the managed investment schemes,” it said.
Super failures under the microscope
The Shield and First Guardian failures have seen the regulator launch civil action against every super fund trustee involved or secure compensation for their members.
Equity Trustees and Diversa Trustees are currently fighting ASIC in court, while Macquarie and Netwealth have admitted to failings and reimbursed their impacted members a combined $422 million.
However, ASIC said it still has more to look at when it comes to super fund trustees’ operational failures that have led to member harm.
“Member services problems like delays in processing claims, inadequate support and services for customers, poor IT infrastructure and cyber resilience, and escalating risks of fraud and scam activity all underscore superannuation fund operations as a key issue for ASIC in 2026,” Longo said.
“Those operational failures by trustees or administrators can result in significant financial losses, compound distress for people facing difficult circumstances, and of course erode trust in the system as a whole.
“With nearly 3 million Australians set to become eligible to access their superannuation over the next decade – and more than $750 billion expected to move from accumulation into retirement – it is essential that the superannuation system is prepared to manage potential operational challenges.”
Beyond these areas, the regulator said it is also concerned about the increase in retail client exposure to private credit markets, following on from its extensive work on private markets in 2025.
“Retail access to private credit and other private market products is expanding, with investment thresholds as low as ~$2,000, and investment platforms (including superannuation) enabling participation in inherently less transparent and in some case more complex products,” Longo said.
“This raises risks of mis‑selling, unsuitable product selection, and decision‑making without adequate disclosure.”
Given the opacity of private markets and limited regulatory reporting, investors are facing “constrained supervision and potential heightened risks”.
Other key issues include the expansion of advanced technology such as AI being used to harm consumers, the continued threat of cyber attacks and scams, and regulatory gaps related to emerging financial sector participants such as digital assets, payments, users of AI.
“ASIC is tracking major shifts across Australia’s financial system as pressures on consumers, markets and businesses intensify,” Longo said.
“In 2026, continued cost‑of‑living strains for vulnerable Australians, rising debt and ongoing geopolitical tensions are adding volatility and uncertainty.
“At the same time, rapid advances in AI are transforming financial services – and fuelling a surge in AI‑powered cyber crime that is testing the resilience of companies and undermining public trust in AI‑driven decisions.”
