PRACTICE POINTS

APRA’s cyber warning

• APRA has issued a stern warning to super fund boards, demanding urgent action to fix weak authentication controls following recent credential stuffing attacks. Under CPS 234, all RSE licensees must complete a self-assessment by 31 August, ensure multi-factor authentication (MFA) for high-risk activities and privileged access, and report any material control weaknesses. Where MFA is missing or lacking, funds must either notify APRA or explain why it's not material. Trustees must also nominate an Accountable Person responsible for CPS 234 compliance. APRA’s message is clear: cyber resilience isn’t optional when you're safeguarding $4 trillion in retirement savings.

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• Ever wondered what’s the difference between novating and assigning a contract? KWM is here to deliver (spoilers, they aren’t the same thing). An assignment transfers rights or benefits, not obligations, under a contract. It doesn’t create a new contract or make the assignee a party to the original deal. It can be done without consent, unless the contract says otherwise. But the assignor stays on the hook for performance. A novation substitutes one party for another. It creates a new contract where the incoming party takes on both rights and obligations, and the outgoing party is released. All parties must consent, though that consent can be pre-authorised: KWM

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• ASIC has launched court action against Australian Unity, alleging it failed to take reasonable steps to ensure retail investors in its Select Income Fund were within the defined target market. While investors were given a questionnaire, ASIC claims responses went unchecked for nearly two years and weren’t used for screening until October 2023. Paper applicants didn’t receive the form at all until late 2022. ASIC says this breached design and distribution obligations, exposing retail investors to potentially unsuitable financial products. Looks like a passive process won’t cut it: ASIC

WORD ON THE STREET

Law firms exposed

• KWM’s Russian ties and exec woes have reignited concerns over law firm governance. Unlike the Big Four, many top firms—including KWM and Corrs—are partner-run and keep financials private, despite pulling in hundreds of millions. Now, Senators Deb O’Neill and Barbara Pocock are calling for tougher oversight of law firm governance, warning firms like KWM “trade on Aussie credibility while operating in opaque offshore environments”: AFR

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• New updates to NSW’s Equality Before the Law bench book urge judges to consider closed courts, female judicial officers, and cultural consultants in cases involving Aboriginal Australians. The guidance highlights intergenerational trauma and warns that legal processes can replicate past harms if Indigenous perspectives are ignored: The Australian

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• Corrs Chambers Westgarth has appointed 12 new partners, including 11 internal promotions and the hire of Jo Feldman as head of trade and partner in arbitration and litigation. Feldman joins from a BigLaw rival, rounding out Corrs’ latest national partner boost: Corrs

TALKING POINTS

Unions take on AI

• At Albanese’s August productivity summit, unions will push for rules on AI use, including compensation when worker data trains AI, mandatory upskilling, and limits on surveillance. Especially in sectors like finance, manufacturing and care, they will also call for a fair share of productivity gains via wage rises, not just higher profits. Maybe AI won't take jobs after all... AFR

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• The European Central Bank has said gold overtook the euro in 2024 as the second-largest global reserve asset, now making up 20% of official holdings. Central banks bought 1,000+ tonnes of gold last year alone, driving prices up 62%. The ECB blames geopolitical tensions, payment system distrust and crypto’s rise for shaking confidence in traditional currencies: Capital Brief

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• Deloitte’s latest wellness perk? LEGO sets and puzzles. That’s right, Deloitte US consultants can now claim up to $1,000 on LEGO and puzzles as part of their wellbeing subsidy. The Big Four firm says the aim is to help staff “thrive mentally, physically and financially” — and presumably survive the long hours… It’s a quirky nod to stress relief through play, as consulting continues to test resilience at every level: Business Insider

THE TREASURY

DEAL ROOM

IPO season?

• Guzman y Gomez’s: $2.96bn IPO success has rivals like Craveable Brands, Grill’d and El Jannah eyeing the ASX—but most are waiting for rate cuts before jumping in. Analysts say El Jannah has the strongest IPO pitch, while Grill’d and Craveable face tougher sells. For now, the sector’s stuck between rising costs and tighter wallets: The Australian

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• OpenAI: has inked a deal with Google Cloud to bolster compute capacity, reducing its reliance on Microsoft’s Azure. The move is a surprise collaboration between rivals, as ChatGPT continues to challenge Google’s search dominance: Reuters

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• Canaccord Genuity: is in talks to buy a major stake in Wilsons Advisory, with Craigs Investment Partners looking to offload its 50% holding after a decade. The deal would reshape Aussie broking, giving Canaccord access to $30bn in advised funds and a deep private wealth network. Rivals are watching closely: AFR

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• McGrathNicol: has set a June 23 EOI deadline for collapsed hospital operator Healthscope, with a break-up of its 37 sites now the likeliest path. But 5–15 unprofitable hospitals could close unless state governments step in. PEP, Genesis and not-for-profits are circling, while distressed debt investors Polus and Canyon hold sway after buying in at a discount: The Australian

SECTOR SPECIFIC

Jetstar exits Asia

🚜 DIGGERS

• Resolution Minerals is snapping up the US’s Horse Heaven project, gaining ground next to the US’s only known antimony reserve. The $1m deal gives RML exposure to gold, tungsten and antimony — all hot commodities thanks to China’s export curbs. Drilling kicks off this year, as RML eyes a foothold in the US critical minerals race: mining.com

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• Australia’s shot at becoming a data centre hotspot is hitting a wall, with regulators warning that surging transmission costs and supply chain delays could derail the clean energy rollout. Projects like EnergyConnect have blown out by 71%, and grid bosses say concrete-heavy infrastructure is dragging timelines and budgets, just as AI-fuelled demand ramps up: AFR

🏦 FIN

• Seven years after turning down Stripe’s $1.2bn buyout, Jack Zhang’s Airwallex is now worth $6.2bn and gunning for IPO readiness by 2026. With $600m+ in cash, 1,800 staff and a footprint in 70+ countries, Zhang’s laser-focused on going global, just not via crypto. The Melbourne-born fintech is now taking on Stripe head-on: Bloomberg

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• Big Four bank dividends are hitting their limits, with ANZ and Westpac paying out more than their target ranges. Morgan Stanley reckons no cuts are coming yet, but predicts dividends will flatline until at least 2027. Only CBA is tipped to grow its payout: Market Index

🏠 RETAIL & REAL ESTATE

• Qantas will shut down Jetstar Asia after 20 years, redirecting 13 aircraft to Australia and NZ to bolster its domestic battle with Virgin. The move unlocks $500m in capital and cuts losses from a unit that's been profitable in 6 out of 20 years. Rising Changi Airport costs and intense SE Asian competition sealed its fate: AFR

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• Mirvac is emerging as the frontrunner to snatch management of Lendlease’s $10bn APPF fund suite, as UniSuper and Hostplus quietly test appetite for a switch. Losing the retail, office and industrial platform would sting Lendlease, which is banking on APPF to help fund its Aussie reboot. Mirvac’s pitch? Inject capital, unlock value, and win over disillusioned unitholders: The Australian

📱 TECH & STARTUPS

• Meta will invest US$15bn for a 49% stake in Scale AI, valuing the data-labelling start-up at US$28bn. That’s one of the biggest deals of its kind as it scrambles to catch up with OpenAI, Google and Anthropic. Co-founder Alexandr Wang will join Meta’s new “superintelligence” lab after Llama 4 failed to impress: Financial Times

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• Brand tracker Tracksuit bags a $400m price tag after a fresh $38m raise led by US fund VMG Partners. The Kiwi-founded start-up, backed by Blackbird, helps brands like Woolies’ Milkrun and Uber Eats track consumer sentiment. It’s also ditched its co-CEO model, with Connor Archbold now sole CEO and Matt Herbert shifting to a CCO role to focus on growth-fuelled partnerships: AFR