Super Alert – 6 February 2026: ASIC & APRA enforcement priorities, access to super for abuse victims, Federal Court decision re breach of DDO

Welcome to the weekly KHQ Super Alert. This week, ASIC and APRA each published speeches setting out their respective 2026 priorities, and ASIC also published the findings of its anti-scam and fraud disclosure review. Treasury released a consultation that proposes opening access to the superannuation contributions of convicted child sexual abusers. AFCA published an updated guide to dealing with superannuation complaints. Finally, the Federal Court released a decision relating to design and distribution obligations.

ASIC – Super trustees urged to rectify gaps in anti-scam and fraud protection

On 4 February 2026, ASIC published a media release ‘urging immediate action from superannuation trustees to strengthen anti-scam and fraud practices’ following a recent review that ‘exposed significant gaps in communications for members’.

ASIC reviewed the websites of 47 superannuation funds. In its review, ASIC identified the following key areas for improvement:

• ‘Several super funds provided no scam or fraud information on their websites at all’;
• ‘Two-thirds of super fund websites included examples of scams and fraud’ however the content was ‘frequently outdated, generic, or overly complex. Only 19% of super funds clearly defined what constitutes a scam, and one-third did not provide messaging on their website on common scam signs’; and
• ‘Only about one third of super fund websites provided actionable information for members to prevent or report scams and fraud. Just one in five offered a dedicated contact method for scam and fraud reporting. Banks consistently outperformed funds in providing clear, detailed action steps and dedicated reporting channels’.

ASIC has contacted several superannuation trustees highlighting its concerns and the ‘urgent need for improved website communications about scams and fraud’.

Click here for details. 

APRA – Deputy Chair’s speech on APRA’s 2026 areas of focus

On 4 February 2026, APRA published the speech of Deputy Chair Margaret Cole, which covered the themes of risk management, resilience and governance for the superannuation industry. In her speech, Ms Cole focused on the important roles that trustees play in safeguarding the superannuation system and the stewardship of member assets that occurs through their duty to act in the best interests of members.

Key points of the speech included:

• through 2026, APRA intends to focus on ‘lifting trustee standards across a range of areas including operational risk management, cyber controls and investment governance’;
• engaging with entities to ensure compliance with CPS 230;
• ensuring Boards understand the ‘material risks and vulnerabilities of critical operations’ and that ‘those risks are being managed appropriately by senior management’;
• the importance of trustees remaining alert to the evolving threat of cyber risk; and
• ‘[s]hortcomings in trustee governance of investment valuations, liquidity and platforms will continue to be a focus for APRA. Platform trustees, in particular, can expect continued heightened scrutiny this year’.

Click here for details. 

ASIC – Commissioner’s speech on ASIC’s recent work and upcoming priorities

On 4 February 2026, ASIC published a speech from one of its Commissioners, Simone Constant, which covered the regulator’s 2025 workstreams and an outline of its 2026 priorities. The year in review summary included:

• a recent review showed several superannuation trustees had failed to identify ‘a single systemic issue from analysis of their complaints data’ over the period of review despite receiving thousands of complaints;
• there is a continued need to ‘invest in governance, capability, skills, systems, and operations to deliver on the promise of super to Australians and move towards best practice’; and
• more than 800 reports were received by Scamwatch related to superannuation, with more than $22 million lost.

Ms Constant also noted that ASIC’s 2026 priorities included:

• assessing ‘how trustees are using complaints to identify and drive systemic improvements’;
• following through on its 2025 death benefits review;
• disrupting ‘harmful superannuation switching behaviours’;
• continuing to ‘drive transparency and consistency in fair outcomes in all capital markets, public and private, including where they intersect with superannuation’;
• continuing its work on ‘superannuation financial reporting and audit surveillance’;
• bringing forward its review of RG 97 to ensure the guidance remains ‘relevant for 2027 and beyond’; and
• continuing to hold ‘super trustees to account for member service failures’.

Click here for details.

Legislation – Minor amendment to IDR instrument

On 4 February 2026, the ASIC Corporations (Amendment) Instrument 2026/48 was registered on the Federal Register of Legislation. According to the Explanatory Statement, the purpose of the Instrument is to amend the ASIC Corporations (Internal Dispute Resolution Data Reporting) Instrument 2022/205 by referencing an updated version of ASIC’s IDR data reporting handbook (it will now refer to the 1 December 2025 version, not the 28 April 2023 version).

Click here for details. 

Treasury – Consultation released proposing access to superannuation contributions for victims of child sexual abuse

On 2 February 2026, Treasury commenced a public consultation on draft legislation designed to ‘prevent convicted child sexual abusers from hiding their assets in superannuation to avoid paying compensation to their victims’. If enacted, the legislation would allow ‘victims and survivors of child sexual abuse to seek access, via a court order, to additional personal or salary sacrifice superannuation contributions made by the offender where a related court order for compensation remained unpaid after 12 months’.

The reforms would also apply to any ‘[u]nfulfilled historical compensation orders brought into existence before the measure’s commencement’, provided they ‘remain legally enforceable and were awarded [following a] criminal conviction or finding of guilt for child sexual abuse’.

The consultation period closes on 20 February 2026.

Click here and here for details.   

AFCA – New Superannuation Complaints Guide published

On 28 January 2026, AFCA published its Superannuation Complaints Guide, replacing its previous Transitional Superannuation Guide, to reflect changes that have occurred since AFCA was established in 2018. The new guide is ‘designed to assist consumers and financial firms by providing guidance about how AFCA interprets and applies relevant statutory powers, its Rules and practices relevant to superannuation complaints’.

While the guide does not introduce any changes to AFCA’s management of complaints it does reflect a range of developments, including:

• ‘New and updated AFCA Approaches’;
• ‘Legislative changes’;
• ‘Key judicial decisions’;
• ‘Updates to AFCA’s Rules and Operational Guidelines’; and
• ‘Changes to AFCA’s processes’.

Click here for details.

Federal Court – Decision in relation to breach of design and distribution obligations

On 30 January 2026, the Federal Court published its reasons in the matter of Australian Securities and Investments Commission v Australian Unity Funds Management Limited [2025] FCA 1679. The orders were delivered by the Court on 23 December 2025, however the written reasons were not made publicly available until now.

The Federal Court ordered a responsible entity of a registered managed investment scheme to pay a pecuniary penalty of $7.125 million, and publish a written notice on the scheme’s website, for breaches of its design and distribution obligations when it ‘failed to confirm the suitability of one of its products for retail investors’.

The orders follow an admission by the responsible entity that it ‘failed to take reasonable steps to ensure that interests in the Fund were only distributed to investors who matched the criteria outlined in its three Target Market Determinations’. The contravention of section 994E(3) of the Corporations Act 2001 (Cth) resulted in hundreds of retail investors investing in a fund that may not have been suitable for them.

Among other considerations, in determining the appropriateness of the penalty, the Court noted the impact of the contravening conduct on a significant number of non-advised investors, the seriousness of the failings and the size and financial resources of the responsible entity.

Click here and here for details.

Want KHQ Super Alerts delivered straight to your inbox each week? Click here to subscribe.