This is general information only and is not legal advice. You should obtain professional advice specific to your circumstances.
ASIC Has Doubled Its Investigations. Is Your Business Ready?
Australia’s corporate regulator has made its position clear: the era of light-touch enforcement is over. ASIC’s 2026 enforcement priorities signal a sustained crackdown on corporate misconduct — and Queensland directors and business owners are firmly in the crosshairs.
In announcing its 2026 priorities, ASIC’s Deputy Chair warned that the regulator’s doubling of new investigations in 2025 “may just be the beginning.” This is not regulatory posturing. ASIC has delivered more investigations, more enforcement actions, and stronger outcomes than at any point in recent memory.
For Queensland business owners, company directors, and officers, understanding what ASIC is targeting in 2026 — and taking proactive steps to manage compliance risk — has never been more important.
What Are ASIC’s 2026 Enforcement Priorities?
ASIC announced its 2026 enforcement priorities on 13 November 2025, signalling a broadening of its regulatory focus and an intensification of its enforcement posture. The priorities fall into two categories: new priorities for 2026 and enduring priorities that have remained unchanged since 2024.
New Priorities for 2026
- Misconduct in private markets: ASIC has identified private markets as opaque and under-regulated. With limited reporting requirements outside superannuation, ASIC is scrutinising private equity, unlisted funds, and private credit arrangements. Directors and officers involved in these structures face heightened regulatory attention.
- Superannuation fund operations: Delays in claims processing, inadequate member services, cyber resilience failures, and escalating fraud risks are under the microscope. While this primarily affects large super trustees, it has flow-on implications for financial advisers and corporate sponsors.
- Operational resilience and crisis response: ASIC is urging directors and AFSL holders to maintain robust risk management frameworks, test operational resilience, and address vulnerabilities with third-party providers. Directors who cannot demonstrate active governance of these risks face personal liability exposure.
- CHESS replacement project delays: Delays in the ASX’s CHESS replacement pose systemic risks. ASIC is monitoring closely — listed entity directors and senior officers should ensure they understand their obligations in this context.
ASIC’s Enduring Enforcement Priorities (2024–2026)
These priorities have not changed — and ASIC’s enforcement record shows they are being actively prosecuted:
- Misconduct that harms market integrity — insider trading, market manipulation, false trading
- Misconduct that harms consumers — misleading conduct, unconscionable dealing, unfair contract terms
- Governance failures — directors breaching their statutory duties under ss 180–184 of the Corporations Act
- Financial reporting failures — failing to lodge annual reports, false or misleading financial statements
- Insolvent trading — directors incurring debts when a company cannot pay its debts as and when they fall due (s 588G)
In a stark demonstration of ASIC’s willingness to enforce, three public companies were fined a combined $1,170,000 in a single day in 2026 for failing to lodge annual financial reports — a breach of ss 319(1) and 1311(1) of the Corporations Act. This was not a complex fraud matter; it was basic non-compliance with reporting obligations.
What This Means for Queensland Directors and Business Owners
ASIC’s 2026 priorities have direct implications for directors and business owners across Queensland. Here are the areas that demand immediate attention:
1. Your Directors’ Duties Have Never Been More Scrutinised
The Corporations Act imposes duties on every company director. ASIC’s enforcement priorities make clear that governance failures — breaches of the duty of care and diligence (s 180), the duty to act in good faith (s 181), the duty to avoid conflicts of interest (s 182), and the duty not to use position improperly (s 183) — will be pursued.
Directors who fail to attend board meetings, fail to read financial reports, or who rubber-stamp decisions without proper enquiry are at risk. The director dispute lawyers at Boss Lawyers regularly advise directors facing ASIC investigations, disqualification proceedings, and civil penalty applications arising from governance failures.
2. Insolvent Trading Remains ASIC’s Sharpest Sword
Section 588G of the Corporations Act imposes personal liability on directors who allow a company to incur debts while insolvent. ASIC’s focus on insolvent trading has intensified, with director disqualification orders being sought in parallel with civil penalty proceedings in multiple Queensland matters.
If your company is experiencing financial difficulty — cash flow stress, creditor pressure, or an inability to meet debts as they fall due — directors must act immediately. Documenting solvency assessments, seeking restructuring advice, and considering the safe harbour provisions under s 588GA are critical protective steps.
3. Financial Reporting Obligations Are Not Optional
The $1.17 million in fines levied on three companies in a single day sends a clear message: ASIC will prosecute basic non-compliance. Every proprietary company limited by shares must comply with its financial reporting obligations under the Corporations Act. Public companies have additional disclosure requirements.
From 2026, large entities also face new mandatory sustainability reporting obligations — requiring annual sustainability reports disclosing climate-related risks, opportunities, and greenhouse gas emissions (Scope 1, 2, and 3). Directors of large entities who have not yet engaged with these obligations face serious exposure.
4. Director Penalty Notices and ATO Enforcement
ASIC’s enforcement push runs in parallel with intensified ATO activity through Director Penalty Notices (DPNs). DPNs hold directors personally liable for unpaid PAYG withholding, superannuation guarantee charges, and GST. A director who receives a DPN has limited time to act — and the window for protection can close quickly.
If your company is behind on ATO obligations, seek legal advice immediately. The intersection of ASIC enforcement and ATO recovery action is the most dangerous territory for Queensland directors in 2026.
The World Bank Is Also Watching: Australia’s Insolvency Laws Under Review
Adding to the regulatory pressure, the World Bank’s B-Ready review is scrutinising Australia’s business-rescue and creditor-recovery frameworks in 2026. This review examines how effectively Australia’s insolvency laws — including voluntary administration, small business restructuring, and liquidation — support economic recovery and creditor protection.
Against this backdrop, the federal government is actively considering reforms, including a potential reduction of the default bankruptcy period from three years to one year. While this proposal has been debated for years, the World Bank review adds political urgency. Directors and creditors should monitor developments closely.
Practical Steps Directors Should Take Now
Given ASIC’s stated 2026 priorities, Queensland directors should take the following steps immediately:
- Audit your solvency position. Engage your accountant to prepare a formal solvency assessment. Document it. If there are concerns, seek legal advice on safe harbour protection options.
- Review your directors’ duties compliance. Are board minutes being kept? Are you attending meetings and engaging substantively? Are conflicts of interest being disclosed and managed?
- Check your financial reporting obligations. Are annual reports and financial statements being lodged on time? Has your company assessed its sustainability reporting obligations for the 2026 financial year?
- Assess your ATO position. Are PAYG withholding, SGC, and GST obligations current? If not, seek advice before a DPN is issued.
- Document every decision on financial distress. If your company is in the “twilight zone” — approaching potential insolvency — every board decision must be documented, commercially justified, and made with the benefit of professional advice.
What to Do If ASIC Contacts You
If you receive a notice from ASIC — whether an examination notice, a compulsory information request, or correspondence relating to an investigation — you should seek legal advice immediately before responding. ASIC has broad investigative powers, and anything you say or provide can be used in subsequent enforcement proceedings.
Boss Lawyers acts for directors, officers, and companies facing ASIC investigations, disqualification proceedings, and corporate enforcement actions. Our team provides strategic, commercially focused advice to protect your position from the moment ASIC makes contact.
Frequently Asked Questions
Can ASIC ban me from being a director?
Yes. ASIC has broad powers under the Corporations Act to disqualify individuals from managing corporations. Grounds include repeated involvement in failed companies, conviction for certain offences, and insolvent trading. ASIC can also apply to the Federal Court for disqualification orders as part of civil penalty proceedings. Disqualification periods typically range from 1 to 15 years depending on the severity of conduct.
What are ASIC’s civil penalty provisions?
The Corporations Act provides for civil penalties for breaches of key director duties and other provisions. Civil penalty amounts for individuals can reach $1.565 million per contravention (as at 2026 figures). Critically, ASIC does not need to prove criminal intent — it only needs to establish the contravention on the civil standard of proof (balance of probabilities).
What is a compulsory ASIC examination?
Under s 596A and s 596B of the Corporations Act, ASIC (or a liquidator, with court leave) can compel a person to attend an examination under oath and produce books and records. Examinees must answer questions truthfully and cannot refuse on the grounds of self-incrimination in civil proceedings. Legal representation is permitted and strongly recommended.
What should I do if my company is in financial difficulty?
Seek legal advice immediately. The safe harbour provisions under s 588GA protect directors who, upon suspecting insolvency, take a course of action reasonably likely to lead to a better outcome for the company. To access safe harbour, you must be taking that course with the benefit of appropriate professional advice, ensuring employee entitlements are being paid, and meeting tax reporting obligations. The safe harbour closes quickly — early action is everything.
Mark Harley is the Principal Solicitor at Boss Lawyers, a boutique commercial litigation and insolvency law firm in Brisbane. Boss Lawyers regularly acts for directors, officers, and companies facing regulatory investigations, insolvent trading claims, and director dispute proceedings. For strategic advice on your position, contact Boss Lawyers on 1300 267 711 or via our online enquiry form.
