Regulatory Shifts and Robust Returns Define Funds Management Outlook
SYDNEY, 19 January 2026 – Australia’s funds management sector enters 2026 navigating a landscape of heightened regulatory scrutiny, strong recent investment performance, and transformative compliance deadlines. Key announcements from the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) this week signal a year of focused enforcement and strategic oversight, while performance data confirms a robust finish to 2025 for superannuation and managed funds.
APRA Leadership Reshuffle and Supervisory Focus
APRA has announced a significant executive change, with Jane Magill appointed as Executive Director, Life Insurance, Private Health Insurance and Superannuation. She fills the role vacated by Carmen Beverley-Smith, who resigned to take up a senior position at a regulated entity. This leadership transition comes as APRA maintains a firm supervisory stance, evidenced by recent enforcement actions. In December 2025, the regulator imposed additional licence conditions on Diversa Trustees Limited to address investment governance concerns and accepted a court-enforceable undertaking from Netwealth. APRA, alongside AUSTRAC, also took action against Bendigo and Adelaide Bank for deficiencies in money laundering risk management and risk culture.
ASIC’s 2026 Priorities: Private Markets, Reporting and Enforcement
ASIC has outlined a busy regulatory agenda for the coming year. The corporate watchdog will discontinue its investigation into the December 2024 CHESS settlement failure, folding it into a broader, ongoing Inquiry into the ASX group’s governance and risk management. ASIC’s 2026 priorities will include heightened scrutiny of private credit practices, financial reporting misconduct, insurance complaints handling, and misleading pricing. This follows a period of significant enforcement, including a record A$250 million penalty against ANZ and a A$35 million settlement with Macquarie Securities in late 2025.
Furthermore, ASIC is progressing its work on the evolving dynamics between public and private markets, with roadmaps for both sectors expected later in 2026. The regulator has also updated guidance for financial services licensees on preventing share sale fraud, following a seven-fold increase in related reports over four years.
Superannuation and Managed Fund Performance: 2025 in Review
Fund members enjoyed a third consecutive year of strong returns in 2025. Research house Chant West reported the median Growth fund (61-80% growth assets) returned 9.3% for the calendar year, driven primarily by international shares. This follows returns of 11.4% in 2024 and 9.9% in 2023.
Notable fund performances for the year to 31 December 2025 included:
| Fund / Category | 2025 Calendar Year Return |
|---|---|
| Median Growth Super Fund (Chant West) | 9.3% |
| Dexus Wholesale Property Fund (12 months to Sep 2025) | 8.2% |
| MLC Wholesale Horizon 4 – Balanced | 7.41% |
| ANZ Investment Funds – Growth Option | 11.18% |
Long-term performance remains solid, with the median Growth super fund delivering an average of 8% per annum over the past 33 years, significantly above typical return objectives.
Looming Compliance Deadline: AML/CTF Reforms
A critical operational shift awaits Australian Financial Services Licence (AFSL) holders on 31 March 2026. Reforms under the AML/CTF Amendment Act 2024 will dismantle the existing distinction between Part A and Part B of AML/CTF Programs, requiring a unified, outcomes-focused program. Existing Designated Business Groups (DBGs) will cease, requiring proactive formation of new Reporting Groups. The reforms mandate explicit inclusion of Proliferation Financing risks in Business Risk Assessments and place a stronger “reasonable steps” compliance obligation on governing bodies and senior management.
Industry Trends: Private Capital and Global Expansion
The growth of private equity and credit continues to reshape capital markets, funding transactions and aggregation plays that may not attract public market interest. This trend is concurrently reducing activity on ASX equity capital markets. Australian super funds are also expanding their global footprint. In a recent significant move, Aware Super acquired a 31.3% stake in the European Outlet Mall Venture platform, reflecting a strategic push to globalise its asset portfolio.
Frequently Asked Questions
What are the key dates for funds management compliance in 2026?
The most pressing deadline is 31 March 2026 for AFSL holders to implement the new unified AML/CTF Program and transition from Designated Business Groups to Reporting Groups. From 1 January 2026, Australia’s new mandatory and suspensory merger control regime also took effect, requiring ACCC clearance for certain transactions before completion.
How did super funds perform over the longer term?
Over the 10 years to December 2024, the top-performing growth-oriented super fund options, as measured by Chant West, included Hostplus Balanced (8.4% p.a.), Australian Retirement Trust Balanced (8.3% p.a.), and AustralianSuper Balanced (8.1% p.a.). All major risk categories have met their long-term return objectives over multi-decade periods.
What is ASIC’s focus regarding financial influencers (“finfluencers”)?
ASIC remains concerned about unlicensed “finfluencers” promoting high-risk products like contracts for difference (CFDs) and providing unlicensed financial advice. The regulator participated in a Global Week of Action Against Unlawful Finfluencers in mid-2025, issuing warning letters and working with international counterparts on enforcement and consumer awareness.