Ethics groups urge ASIC powers on beneficial ownership

The Australian Securities and Investments Commission (ASIC) should be empowered to issue tracing notices with respect to the beneficial ownership of companies without having to demonstrate reasonable grounds, according to the Tax Justice Network and other ethical investing groups.

In a submission filed as part of the Senate Economics Legislation Committee’s review of an omnibus bill the groups urged a strengthening of the beneficial ownership disclosure obligations to match those already applying to entities on Australian financial markets.

The submission, authored by the Centre for International Corporate Tax Accountability and Research, U Ethical Investors, the Tax Justice Network and the Uniting Church welcomed changes included in the Government legislation but urged that it go further.

“We urge that the Committee recommend that the Bill be amended to:

• the registers of information received through the tracing notices they have issued or that ASIC has passed on from information obtained via ASIC-issued tracing notices must be open for inspection at no cost for anyone to access the register, not just members of the entity, academics and journalists; and,
• that ASIC should be able to issue tracing notices without demonstrating they have reasonable grounds that the person has relevant interests in, or has given instructions, about securities. We do not see that the additional barrier to issuing a tracing notice is in the service of the public interest.

“In addition, we request that the Committee recommend that ASIC use the powers contained within the Bill to require tracing notice registers to consolidate information about owners to make it easier for those accessing the register to understand the ownership of an entity,” the groups said.

“While we largely support the measures contained within the Treasury Laws Amendment (Strengthening Financial System and Other Measures) Bill 2025, we look forward to progress towards the Government’s commitment to creating a public beneficial ownership register.

“Consistent with the media release of the Assistant Minister for Productivity, Competition, Charities and Treasury on 15 November 2025, we look forward to rapid progress on a national register of beneficial ownership of corporations,” the submission said.

“We note that the Bill would align the Australian disclosure regime with markets such as New Zealand, the UK, Hong Kong and Switzerland.”

It said the groups welcomed the crackdown on using complex financial products to conceal ownership in listed corporation and supported it requiring foreign-registered entities listed on Australia’s financial markets and shareholders to disclose interests in securities to the same standard as Australian-registered listed entities and their shareholders.

“We also welcome the amendments to strengthen the investigation and enforcement powers of ASIC to freeze opaque holdings that might be used to circumvent legal obligations or financial crime,” it said.