Regulatory Alerts2026-06-04
ASIC issues infringement notices to Zara, H&M, and Sephora retailers for late financial reports
ASIC issued infringement notices to Inditex Australia, H&M Hennes & Mauritz, and Sephora Australia for failing to lodge annual financial reports by the required dates. Each company paid a $198,000 penalty, bringing the total settlement to $596,000, while confirming that all outstanding reports have now been lodged. This enforcement action underscores ASIC's 2026 priority to pursue late or non-lodgement of financial reports by large proprietary companies through data-driven surveillance and significant penalties.
ASIC has issued infringement notices to three companies operating major fashion and beauty retail businesses in Australia for allegedly failing to lodge their financial reports by the required date.
Inditex Australia Pty Ltd, which operates and retails under the Zara fashion brand in Australia, has paid an infringement notice of $198,000 for failing to lodge its report for the financial year ending 31 January 2025.
H&M Hennes & Mauritz Pty Ltd, which operates and retails under the fashion brand H&M, paid an infringement notice of $198,000 for failing to lodge its report for the financial year ending 30 November 2025.
Sephora Australia Pty Ltd, a beauty and personal care retailer, paid an infringement notice of $198,000 for failing to lodge its report for the financial year ending 31 December 2024.
The three companies have now lodged all outstanding financial reports.
Payment of an infringement notice is not an admission of guilt or liability, and the companies are not regarded as having been convicted of the alleged offence.
The specific reasons for ASIC’s concerns are set out in the infringement notice on the Infringement Notices Register .
ASIC’s focus on financial reporting in 2026
ASIC Commissioner Kate O’Rourke said the three infringement notices reinforced ASIC’s ongoing commitment to pursuing enforcement action for late lodgement and non-lodgement of financial reports by large proprietary companies.
‘Since announcing a broad surveillance focused on late lodgement and non-lodgement of financial reports in August 2025, ASIC has issued 24 infringement notices totalling over $4.5 million for alleged financial reporting breaches.
‘This, combined with court-imposed fines for failing to lodge financial reports and related governance obligations, should send a clear message to reporting entities that we are actively enforcing the financial reporting requirements and expect companies to comply.
‘In line with our current enforcement priority, and through our targeted, data-driven surveillance, we continue to identify and investigate a number of companies that have lodged late or failed to lodge at all.
‘ASIC will take appropriate action to ensure reporting entities are well aware of, and comply, with this important governance and disclosure obligation’, Ms O’Rourke said.
Background
Financial reporting misconduct including the failure to lodge financial reports, is one of ASIC’s 2026 enforcement priorities ( 25-273MR ).
In addition to the 24 infringement notices issued, we have obtained court-imposed fines for failing to lodge financial reports and related governance obligations, including more than $1.1 million in fines against three public companies in a single day at the Downing Centre Local Court ( 26-058MR ).
25-298MR ASIC issues over $2.2 million in infringement notices to 12 large proprietary companies for alleged failure to lodge financial reports
25-278MR Infrabuild companies pay infringement notices for failing to lodge financial reports on time
26-057MR Mecca companies pay $594,000 in infringement notices for failing to lodge financial reports on time
26-090MR Canva Group pays $792,000 in infringement notices for failing to lodge financial reports on time
Large proprietary companies are required to prepare and lodge annual financial reports. A proprietary company is classified as large if it meets at least two of the following criteria for a financial year:
the consolidated revenue of the company and any entities it controls is $50 million or more
the consolidated gross assets of the company and any entities it controls is $25 million or more, and
the company and any entities it controls have 100 or more employees.
In addition to large proprietary companies, other entities that are required to prepare and lodge financial reports include public companies, registered managed investment schemes, registrable superannuation entities, and small proprietary companies that are controlled by a foreign company.