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Managing macroeconomic risks through proactive stress testing
Client alertProactive stress testing to manage macroeconomic risk, strengthen financial stability and banking
Quick summary
- ASIC is intensifying scrutiny on mortgage broking, motor vehicle finance, and debt management firms, with emphasis on dispute resolution, audit practices, loan hardship, and fee transparency.
- The regulator is prepared to use its full enforcement toolkit to address misconduct and ensure firms meet their best interests duty, especially in high-complaint sectors.
- Lenders should strengthen compliance frameworks, improve hardship and dispute resolution processes, and uphold fairness and transparency—particularly for vulnerable consumers.
Earlier in October, ASIC Commissioner Alan Kirkland delivered a compelling address at the 35th Annual Credit Law Conference 2025, outlining the regulator’s current priorities in the credit sector, and emphasising the regulator’s role in safeguarding consumers’ financial futures and the importance of responsible lending practices and regulation across Australia’s credit landscape.
Contents
ASIC noted a significant number of complaints in areas of private credit such as mortgage broking, motor vehicle finance, and debt management repair, credit repair and debt collection. Due to the significant number of complaints, ASIC emphasised its readiness to use its full suite of regulatory tools to deter misconduct and ensure financial firms comply with their best interests duty. In particular, ASIC will be focusing on the following key areas:
- Brokers’ compliance with internal dispute resolution obligations
- Aggregators’ audit and compliance practices and their supervision of mortgage broker representatives
- Motor vehicle finance’ practices in relation to loan defaults, hardship and dispute resolution
- Debt management firms’ business model, including fee practices and product disclosures
Takeaways for credit providers
Broadly, ASIC is intensifying its oversight of credit providers and intermediaries with a strong emphasis on fairness, transparency, and accountability in credit markets. The regulator is particularly focused on vulnerable consumers, aiming to ensure they are not exploited by poor lending or collection practices.
Lenders and credit providers should:
- Review and reinforce compliance frameworks, particularly in high-risk areas.
- Ensure hardship processes are accessible, fair, and responsive.
- Ensure effective practices in internal dispute resolution.
- Prioritise transparency and accountability in all consumer interactions.
How can we help
We have experience in assessing compliance framework and practices, internal dispute resolution processes, and hardship practices. We leverage data analytics to pinpoint systemic risk and areas of improvement, along with regulatory expertise to help you strengthen your existing frameworks.
We work with you to perform health checks and ongoing compliance monitoring to enhance your existing practices, including targeted reviews of credit, internal dispute, and hardship practices to ensure alignment with both regulatory expectations and customer fairness principles. Contact a member of our team to discuss your compliance needs.
Article contributed to by Jamil Saripada - Audit & Assurance
Authors
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Tari Makanda Tari is an experienced financial services specialist who combines her technical skills with international experience, having worked in Zimbabwe, Cayman Islands and Sydney. Tari is committed to building strong relationships with her clients and takes a commercial and pragmatic approach to deliver an excellent service and high quality deliverables.View Profile -
Claire Scott Claire has 17 years of external audit, assurance & advisory experience for financial services clients including superannuation funds, investment managers, ADIs such as credit unions, mutual banks and foreign banks, mortgage funds and other financiers covering residential mortgage funds, personal lending, commercial lending, leasing and specialty finance.View Profile -
Jane Stanton Jane has over 20 years of financial services industry experience having worked in a variety of senior risk management, internal audit and finance roles for APRA regulated and listed entities.View Profile -
George Sutton George has over 20 years of professional experience serving clients in financial services and risk consulting.View Profile
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