The Australian Securities and Investments Commission (ASIC) published its February 2026 financial advice update, launching a new review of financial advice licensees that use lead generation services and warning it may take enforcement action where it detects contraventions linked to practices that inappropriately or unnecessarily encourage consumers to switch superannuation. The review covers identification of financial advice businesses using lead generation services and includes a published list of involved entities, referral partners, and Australian financial services licensees or corporate authorised representatives that acquired leads since 1 July 2024, with ASIC stating that inclusion is not an indication of illegality. The update also reiterates ASIC’s findings from its Review of SMSF establishment advice, which assessed 100 retail client files across 27 advisers and 12 advice licensees and found 62 files where advisers failed to demonstrate compliance with the best interests duty and related obligations, including 27 files raising significant client detriment concerns; ASIC is progressing regulatory responses, including enforcement in serious cases, and has requested licensees review advice and remediate affected clients where required. Other themes include remediation of misunderstandings and potential under-reporting in Internal Dispute Resolution reporting under Regulatory Guide 271, reportable situations obligations (including reporting about other licensees and providing them a copy of lodged reports), and weaknesses in governance of offshore outsourcing arrangements, where most reviewed licensees lacked adequate assessment and ongoing monitoring arrangements for offshore service providers used through intermediaries. ASIC indicated it will consider enforcement action where the lead generation review identifies evidence of contraventions, and it encouraged advice licensees to strengthen complaint capture and reporting processes, breach reporting controls, and outsourcing risk management to meet their general obligations.
Australian Securities & Investments Commission 2026-02-26
Australian Securities and Investments Commission begins review of advice licensees using lead generation services and publishes list of entities acquiring leads since 1 July 2024
The Australian Securities and Investments Commission (ASIC) announced a review of financial advice licensees using lead generation services, warning of potential enforcement actions for inappropriate superannuation switching practices. ASIC's update highlighted findings from its Review of SMSF establishment advice, revealing compliance failures in 62 out of 100 retail client files, and emphasized the need for improved complaint reporting and outsourcing governance. ASIC urged licensees to enhance breach reporting controls and risk management to fulfill their obligations.