ASIC warned Australian financial advice firms on 9 November 2026 after examining how 15 licensees supervised lead generators for retail personal advice in Report 845. It assessed practices from 1 January 2025 to 1 June 2026. The regulator warned that weak oversight and harmful referrals can put advice licensees' authorisations at risk.
ASIC counted 7,639 referrals to advisers, or 35% of new clients at the firms reviewed. Customers switched or invested more than A$678 million, about 90% from superannuation savings. Advice firms collected A$9.8 million in initial fees and had commitments for another A$4.5 million in ongoing fees.
Some firms let unqualified or unlicensed intermediaries collect client information, assess risk profiles and discuss recommendations. ASIC also found sales pressure, comparisons between unlike products and gaps in access to call recordings. Some licensees relied heavily on manual supervision and did too little to monitor recommendation patterns or adviser workloads.
Commissioner Alan Kirkland said ASIC will enforce existing obligations where it finds evidence of serious harm. The release cites prior proceedings and five-year bans for two advisers as examples of separate cases. The government's August proposals to strengthen consumer protection in retirement savings and financial advice are still proposals.
Sources ASIC · ASIC · Finance Magnates · TradeInformer
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