The Australian Securities and Investments Commission (ASIC) has underscored its regulatory priorities for the financial advice sector as it moves closer to the 2026 deadline for new education standards.
Addressing the Professional Planner Licensee Summit in the Blue Mountains, Commissioner Alan Kirkland outlined areas of heightened scrutiny, including misconduct in sales practices, adviser qualifications, and the outsourcing of advice functions.
Kirkland said ASIC continues to investigate models that use high-pressure tactics to shift consumers into high-risk investment products, often involving self-managed superannuation funds and property-based schemes.
He described a pattern where consumers respond to social media advertisements offering help with superannuation – such as finding “lost super” or a “super check” – only to be targeted by telemarketers who persuade them to switch funds, often without clear justification.
“This exposes consumers to the risk of significant losses – not only from the nature of the underlying investments but also from the high fees that are deducted from their super balances, directly or indirectly, by a range of entities along the way,” he said.
He noted that while only a small number of advisers or promoters are engaged in such conduct, the scale of consumer harm can be substantial.
ASIC has launched multiple enforcement actions to prevent asset loss in cases where misconduct is suspected and said more cases are in the pipeline.
To complement enforcement, the regulator is launching a consumer education campaign to highlight risks associated with unsolicited advice.
With the Jan. 1, 2026, deadline approaching, ASIC has raised concerns over adviser readiness to meet new educational standards.
Of the 15,610 financial advisers listed on the Financial Advisers Register, 6,426 currently meet the qualification requirement. However, over 4,600 advisers are yet to comply.
Kirkland noted discrepancies in register data, including instances where advisers claimed qualifications that are incomplete or not on the list of approved courses.
Others have listed themselves under the experienced provider pathway despite not meeting the eligibility criteria.
Kirkland called on Australian Financial Services (AFS) licensees to ensure adviser information on the register is up to date and accurate and to confirm that their advisers either meet the qualification standards or qualify for transitional treatment under the experienced provider pathway.
ASIC will implement a post-deadline compliance program that will use register data to determine which advisers remain authorised to provide personal financial advice to retail clients.
Kirkland also addressed the rising use of offshore outsourcing for functions such as paraplanning and administration support.
He said cost pressures and skill shortages are likely driving the shift, but noted that licensees remain fully responsible for ensuring compliance regardless of where services are performed.
ASIC is currently reviewing how advice businesses manage the risks associated with offshore service arrangements.
While the review is ongoing, Kirkland said the regulator will provide more detailed feedback later in the year.
The keynote follows ASIC’s recent announcement of a strategic transition from consultation to implementation in broader financial market reforms.
Chair Joe Longo stated that the regulator aims to reduce friction in capital raising and boost investor confidence, including in IPO processes.
He also pointed to growing interest in private capital markets, particularly given the involvement of superannuation and insurance funds.
Consultation responses indicate support for greater scrutiny around valuation practices, fee disclosures, and conflict management.
ASIC has signalled that future interventions will be based on evidence and aligned with public interest outcomes.
