ASIC financial advice update – February 2026

ASIC’s provided a comprehensive round-up of regulatory developments and enforcement actions specifically affecting advice licensees and financial advisers. There were some key regulatory reviews and findings, licensees should review and consider this advice in their own practises. These include:

  • Lead generation services: ASIC has commenced a new review of licensees using lead generation services to identify practices that inappropriately encourage consumers to switch their superannuation. ASIC has published a list of involved entities and referral partners.
  • SMSF establishment advice (REP 824): ASIC reviewed 100 client files that had received SMSF establishment advice and uncovered that 62% failed to comply with the best interests duty. Key issues included advisers acting as “order-takers” and failing to prioritise client interests, particularly in conflicts involving off the plan properties.
  • Complaint handling – internal dispute resolution (IDR): ASIC found that many licensees misinterpret what qualifies as a “complaint,” wrongly believing that minor or immediately resolved matters do not need to be reported. Licensees must record any expression of dissatisfaction.
  • Reportable situations (breach reporting): recent reviews showed that some licensees still do not fully understand the expanded reporting regime or their obligation to report breaches by other licensees. It may be a good time to revisit the Breach Reporting Policy and provide updated training to ensure all staff have the necessary knowledge.
  • Offshore outsourcing: a review of 10 licensees highlighted risks such as loss of control over data confidentiality, difficulties managing cyber incidents, and conflicts between foreign and Australian laws. If any licensee outsources any function offshore, a review should be undertaken. Read more here.

Organisations affected: AFSL holders

Policies affected: As required

Bank Capital and Liquidity Framework Enhancements (APRA)

The Australian Prudential Regulation Authority (APRA) announced a consultation on a package of reforms to bank capital and liquidity settings. Key proposals include a new Pillar 2 liquidity framework for the largest banks to address risks not covered by existing minimum requirements, and a more risk-sensitive framework for smaller banks. APRA is also planning targeted amendments to the standardised capital framework (to better align capital requirements with underlying risk) and the implementation of a simplified approach to the Fundamental Review of the Trading Book (FRTB).  Read more here.

Organisations affected: APRA regulated entities

Policies affected: Consultation at this stage

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