Here, There and Everywhere (The Beatles): Regulatory, Digital, and Sustainability Updates

Regulatory  

February always has a You Can’t Hurry Love (Phil Collins) beat, when it really should be more like a post-holiday A Groovy Kind Of Love (Phil Collins) feeling—businesses are getting back up to speed, but regulators are already setting the tempo for the year ahead. While most people were easing into 2025, ASIC and the RBA were busy laying down their priorities, and these will be playing on repeat for the industry in the months to come.  

ASIC has started the year with its Key Issues Outlook, setting the tone for tighter oversight on delays, poor communication, and claims and complaints handling that doesn’t meet consumer expectations. The message is clear—ASIC expects financial firms to get better at service, faster at responses, and sharper on compliance. They’re watching for businesses that drag their feet on decisions or leave customers in the dark, and they won’t be slow to act. It’s a bit like Stop Draggin’ My Heart Around (Stevie Nicks & Tom Petty)—financial firms that aren’t keeping pace could find themselves in ASIC’s sights. 

Following the passage of the BNPL legislation, ASIC has confirmed that BNPL providers will need to hold an Australian credit licence from 10 June 2025. The government has consulted on draft regulations and ASIC is consulting on their regulatory guidance for the new BNPL regime, with discussions on scalable responsible lending ongoing. AFIA has not only been working with the regulator on the new BNPL regime, but we have also been using lessons with tech-enabled products to build our case for a review of RG 209. We will continue to advocate strongly for proportionate regulation and sensible administration of the law, so our industry can drive efficiency, competition and innovation, while maintaining consumer safeguards.  

The RBA’s review of retail payments regulation is also picking up the rhythm, with a focus on merchant card payment costs, surcharging rules, and transparency in fees. With digital payments now the default for most transactions, the central bank is looking at whether interchange fees and least-cost routing are working as intended—and whether surcharges are becoming excessive. For businesses and customers alike, it’s a familiar struggle—who should bear the cost of payments, and are we paying more than we should? It’s got all the makings of Love Don’t Cost a Thing (Jennifer Lopez)— except when it comes to payment costs, that’s not true, someone pays. We submitted a response to the RBA Review of Merchant Card Payment Costs and Surcharging consultation late last year, you can read it here.  

Following coordinated advocacy from AFIA and other industry peak bodies in financial services, the Treasury has introduced its Regulatory Initiatives Grid (RIG), a tool designed to map out upcoming financial services regulatory changes. The aim is to provide greater transparency and predictability, allowing businesses to plan ahead rather than react to regulatory changes as they happen. This means a clearer view of upcoming reforms, reducing uncertainty and helping the industry engage early on key policy decisions. With multiple regulatory changes on the horizon, proactive engagement will be key. 

Digital 

Technology offers us the sweet serenade of convenience, but it also brings the occasional Heartbreak Hotel (Elvis Presley). Recent initiatives by governments and regulators are aiming to strengthen our defences and keep the harmony alive in our digital interactions. 

There has been heaps said on scams, but I thought this was interesting. AFCA has expressed strong support for the proposed Scams Prevention Framework Bill 2024, advocating for a comprehensive, ecosystem-wide response to combat scams. In their opening statement to the inquiry, AFCA emphasised the necessity of real-time intelligence sharing and the establishment of mandatory industry codes to effectively detect, prevent, and disrupt fraudulent activities. They highlighted that current legislative and regulatory settings are inadequate, underscoring the urgent need for this framework to protect consumers from the growing threat of scams. I note that AFCA already deals with complaints about scams, but under the new scams regime they will be the EDR scheme for the three designated sectors—banks, telcos and digital platforms—under the scams prevention framework, so this will inevitably impact on views about EDR, with a larger role for AFCA.  

Meanwhile, the Office of the Australian Information Commissioner (OAIC) has launched a new interactive dashboard to improve access to Freedom of Information (FOI) data, ensuring greater transparency in government decision-making. The tool provides quarterly updates on FOI requests, giving the public a clearer view of how information is managed across government agencies. I note that FOI requests are increasingly being used, particularly by some journos in Australia, so this will continue to be something to watch because it will inevitably impact on how government engages with industry and its representatives.

Sustainability 

Australia's clean energy sector is striking a chord that resonates with optimism and ambition. Recent developments suggest we're not just humming along; we're gearing up for a full orchestral performance in the transition to renewable energy. 

 The Clean Energy Finance Corporation (CEFC) has announced a record $3.5 billion in new investment commitments for the six months ending December 2024. This surge in funding underscores the CEFC's important role in steering Australia towards its net zero emissions target by 2050. These investments span 28 transactions and are expected to mobilise an additional $9.8 billion from co-investors, amplifying the impact across the clean energy economy. 

Among these commitments is the CEFC's largest single investment to date: a $490 million backing for critical transmission projects like HumeLink and the New South Wales segment of the Victoria-NSW Interconnector. These projects are instrumental in modernising our energy grid, ensuring it can handle the increasing influx of renewable energy sources. 

To bolster these efforts, the Government has pledged an additional $2 billion to the CEFC—AFIA has been advocating for additional funding, with a number of our members already in partnerships with the CEFC. This infusion is designed to support Australian households, workers, and businesses in embracing cheaper, cleaner, and more reliable renewable energy. The government anticipates that this investment will unlock around $6 billion in private sector funding, further accelerating the nation's clean energy transition. 

AFIA will continue our industry-level engagement with the CEFC, so if your business is thinking I Want To Know What Love Is (Foreigner) and you’re not in contact with the CEFC as they expand their partnerships, please contact us on info@afia.asn.au and we can put you in contact with the right people.