ASIC Proposes Regulatory Changes for AFCA Oversight
The updates prepare Regulatory Guide 267 for expanded scam-prevention rules set to begin in 2027.
Updated on Oct. 27, 2026 in Insurance
Live Poll
Should federal regulators expand scam liability rules to include the insurance industry?
The Australian Securities and Investments Commission (ASIC) has opened consultation on proposed changes to Regulatory Guide 267 to better align with upcoming scam-prevention mandates. These updates are designed to support the Australian Financial Complaints Authority (AFCA) as it prepares for the commencement of the Scams Prevention Framework.
Why it matters
These regulatory adjustments aim to streamline complaint handling and boost consumer protection as the financial sector faces rising losses from various fraud schemes. By allowing multiple entities to be held liable in single complaints, the changes ensure more robust accountability for firms under the new framework.
AFCA received 120,000 total complaints in the 2025-26 fiscal year, including 36,022 general insurance complaints. The direct scam-loss compensation cap is set to double from $631,500 to $1.263 million.
The players
ASIC
The Australian Securities and Investments Commission is the federal government body that regulates markets and financial services.
AFCA
The Australian Financial Complaints Authority is an independent body that resolves disputes between financial firms and their customers.
NASC
The National Anti-Scam Centre is a government-led agency focused on coordinating efforts to detect and disrupt scams across Australia.
ICA
The Insurance Council of Australia is the representative body for the general insurance industry in the country.
The details
ASIC plans to remove content from Regulatory Guide 267 that is now covered by AFCA's approved scheme rules to reduce duplication. Proposed rules will allow for split liability, permitting consumers to name multiple regulated entities in one complaint for a more efficient resolution process.
Timeline
2018: AFCA established.
January 2025: ICA submitted views to Senate.
March 2026: NASC published 2025 scam report.
24 November 2026: Consultation feedback deadline.
31 March 2027: Scams Prevention Framework commences.
Market Dynamics
The proposed changes to Regulatory Guide 267 align with the broader implementation of the Scams Prevention Framework to combat financial fraud. This shift reflects a move toward tighter oversight and increased liability for financial institutions as losses from investment and payment redirection scams grow.
Consumers stand to gain higher financial protection, as the direct scam-loss compensation cap is slated to increase to $1.263 million. The new process will also simplify how users file complaints, particularly when multiple financial entities are involved in a dispute.
The takeaway
These changes reflect a strengthening of the consumer protection net in the face of rising digital fraud. Australians should remain vigilant regarding investment and payment scams, while being aware that the avenues for dispute resolution are expanding to hold firms more accountable.
What happens next
Industry stakeholders must submit their feedback on the proposed regulatory changes to ASIC by 24 November 2026, followed by the expected publication of the final Regulatory Guide 267 by 31 March 2027.
Further reading
Find more information on industry oversight at Australia Insurance.
Source note: This article includes information reported by Insurance Business.
Live Poll
Should federal regulators expand scam liability rules to include the insurance industry?
