ASIC Bans and Restrictions Jump to 150 in Year

The Australian Securities and Investments Commission (ASIC) has published data showing a sharp increase in its use of administrative enforcement powers in the 2025-26 financial year. The regulator removed or restricted 87 individuals and businesses from providing financial services, up from 58 the previous year, while total administrative outcomes reached 150, compared with 105 a year earlier.

These actions include banning orders and license cancellations that do not require court proceedings. ASIC Chairwoman Sarah Court said such powers "can often be deployed more swiftly than or ahead of court action." Of the 150 outcomes, 77 were permanent bans or cancellations, covering 31 individuals and 46 organizations.

The administrative route is particularly relevant to retail forex and CFD traders. ASIC's review of 52 CFD issuers resulted in AU$40 million returned to investors through administrative intervention rather than litigation. This aligns with a broader regulatory crackdown on the retail derivatives sector. In the same period, ASIC secured AU$830 million in civil penalties, with the largest single penalty being AU$300.2 million against collapsed CFD issuer Union Standard and its former authorised representatives EuropeFX and TradeFred.

The regulator also banned 15 advisers connected to the Shield Master Fund and the First Guardian Master Fund, a fraction of the enforcement effort valued at about AU$1.1 billion spanning roughly 11,000 investors.

For retail traders, the takeaway is that ASIC is actively using its administrative powers to remove bad actors from the financial services industry, which includes many CFD brokers. The rise in permanent bans suggests a tougher stance on compliance failures. Traders should verify that any broker they use holds a valid Australian Financial Services (AFS) license and check ASIC's register for any disciplinary actions. The increase in administrative enforcement could signal a more proactive regulator, which may ultimately provide greater investor protection.

This is information, not investment advice.