Trends in Financial Advice Regulation — What to Watch
Key takeaways:
- Financial advice regulation in 2026 is shaped by the DBFO reforms, LRBA ban, and ongoing ASIC enforcement priorities
- The Delivering Better Financial Outcomes (DBFO) reforms are simplifying compliance obligations while maintaining consumer protections
- Technology-driven compliance solutions are becoming essential for advisers managing complex regulatory requirements
- ASIC continues to prioritise enforcement action against misleading conduct and inadequate advice documentation
Emerging regulatory trends that will shape financial advice compliance
AI and RegTech Adoption
ASIC and Treasury have encouraged the use of RegTech for compliance monitoring and breach reporting. AI-powered compliance tools are increasingly being adopted by AFSLs and advice practices to improve file review quality and consistency.
Consumer Protection Focus
Regulatory attention on consumer protection continues to intensify. This includes scrutiny of ongoing fee arrangements, advice documentation quality, and the handling of complaints. Advisers should expect continued focus on these areas from ASIC.
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AFSL Accountability
Licensee accountability for adviser conduct remains a regulatory priority. AFSLs are expected to have robust monitoring and supervision frameworks in place. This includes regular file reviews and proactive identification of compliance issues.
Technology and Compliance
The intersection of technology and compliance is increasingly important. Automated compliance tools are becoming standard practice for proactive firms. AdviserCheck is designed to help practices meet these evolving regulatory expectations efficiently.
Key Regulatory Changes in 2026
The 2026 regulatory landscape for financial advisers in Australia is dominated by the phased implementation of the Delivering Better Financial Outcomes (DBFO) reforms. These reforms aim to reduce compliance costs while maintaining the strong consumer protections established by the Future of Financial Advice (FOFA) reforms. Key changes include streamlined SOA requirements, updated best interests duty obligations, and simplified fee disclosure statements.
The LRBA ban for SMSFs continues to reshape retirement advice, while ASIC has signalled that enforcement priorities for 2026 focus on greenwashing, misleading financial product representations, and inadequate compliance with the best interests duty. Advisers must stay current with these changes to ensure their SOAs and ROAs meet evolving regulatory standards, particularly regarding disclosure of fees, conflicts of interest, and scope of advice.
Impact on Adviser Compliance Obligations
The DBFO reforms have introduced significant changes to how advisers document advice. The new streamlined SOA provisions allow for shorter, more focused advice documents for straightforward advice scenarios, while maintaining full disclosure requirements for complex advice. Advisers must carefully determine which SOA template applies based on the complexity of the advice being provided and the client's circumstances.
Record-keeping obligations have also been updated, requiring advisers to maintain comprehensive client advice records (CARs) that demonstrate compliance with the best interests duty. The ATO and ASIC have increased data-sharing arrangements, meaning inconsistencies between advice documents and actual product holdings are more likely to be detected. Advisers should conduct regular file reviews to identify and address compliance gaps before they are flagged by regulators.
What Clients Should Look For in 2026 Advice Documents
Clients receiving financial advice in 2026 should expect documents that are clearer and more concise than in previous years, thanks to the DBFO reforms. Your SOA should clearly state whether the advice is general or personal, explain the scope of the advice, and disclose all fees and commissions in a transparent manner. If your adviser has used a streamlined SOA, check that it still addresses your personal circumstances and objectives.
You should also check that your advice document references relevant regulatory changes that affect your situation. For example, if you have an SMSF with property, your SOA should address the LRBA ban. If your advice involves superannuation contributions, the document should reference current contribution caps and any transitional rules. A compliant advice document demonstrates that your adviser is staying current with regulatory developments.
Frequently Asked Questions
What are the DBFO reforms and when do they take effect?
The Delivering Better Financial Outcomes (DBFO) reforms are a package of legislative changes designed to reduce red tape for financial advisers while maintaining consumer protections. They are being implemented in stages from 2024 through 2026, with key changes including streamlined SOA requirements and updated best interests duty obligations.
How is ASIC enforcing compliance in 2026?
ASIC's enforcement priorities for 2026 include: misleading financial product representations, greenwashing, inadequate compliance with best interests duty, and failures in fee disclosure. ASIC has increased its surveillance of advice documents and is using data analytics to identify non-compliance patterns.
Do the new streamlined SOA rules apply to all advice?
No. Streamlined SOA provisions apply to simpler advice scenarios. Complex advice, such as SMSF establishment, complex tax strategies, or advice involving multiple product replacements, still requires a full SOA. Your adviser must correctly classify the advice complexity.
How can clients verify their adviser is compliant with 2026 regulations?
Clients can check ASIC's Financial Advisers Register to confirm their adviser is licensed and has no disciplinary history. They can also request a copy of their adviser's AFSL compliance document and check that their SOA addresses all relevant regulatory changes affecting their situation.
Enforcement Watch: What ASIC Did Last Year
During 2024-25, ASIC secured 19 criminal convictions, began 38 new civil proceedings, collected $104.1 million in court-ordered penalties and banned or restricted 58 individuals or companies — an escalation of roughly 50% in investigations year-on-year that the regulator itself describes as becoming a "more confident and ambitious regulator."
Individual outcomes tell the story behind those figures:
- A long-running concern came to a head with the Shield Master Fund (2024-25), where ASIC installed receivers before the fund was ultimately wound up over inappropriate advice and disclosure failures.
- Four MWL Financial Services advisers received bans of 4–8 years in 2025 for recommending the fund without regard to clients' best interests.
- Glenda Rogan was banned for a decade in 2025 after directing $14.8 million of client funds into a crypto-based scam.
- A permanent ban went to Barry King (2025) for dishonest conduct, misusing client money and producing false documents.
- Fees-for-no-service remained enforcement-relevant: multiple licensees faced action, including Crown Wealth Group director Andrew Moore, banned over unreported FFNOS conduct.
- And in 2025 ASIC fined licensees including Skye Money and Smart Financial Capital $31,300 each for permitting unregistered advisers to practise.
ASIC has also warned about business models using high-pressure selling and inflated return promises to target Australians' superannuation.
Compiled from the ASIC Annual Report 2025 and ASIC's Financial Advice Update (August 2025).
Regulatory Timeline: 2012 to Today
Each reform below changed what your adviser must do and disclose. Knowing the timeline helps you judge how current your document's obligations are.
| Date | Reform | Impact on Consumers |
|---|---|---|
| July 2012 | FOFA enacted | Best interests duty (s961B), ban on conflicted remuneration, opt-in for ongoing fees |
| July 2013 | FOFA mandatory | Full compliance required — advisers must act in your best interests |
| July 2016 | Accountants' exemption repealed | Accountants need AFSL to give SMSF advice, increasing consumer protection |
| 2018-2023 | Royal Commission + response | FEAR Act (2019) — higher penalties, breach reporting, enforceable director duties |
| Dec 2022 | QAR Final Report | 22 recommendations including simplified SOAs, new adviser class, streamlined best interests duty |
| July 2024 | DBFO Tranche 1 | FSG website disclosure option, conflicted remuneration clarification |
| Jan 2025 | DBFO changes commence | Fee Disclosure Statements removed, streamlined ongoing fee consents, legal clarity for super advice fee deductions |
| Mar 2025 | DBFO Tranche 2 draft | SOA rationalisation, collective charging for super, super fund targeted prompts. Best interests duty modernisation and new adviser class still in development. |
Sourced from ASIC, Treasury DBFO documentation, FAAA and APESB publications.
From Trends to Practical Checks
This page explains the rule; AdviserCheck applies it. Our engine encodes FOFA obligations, the s961B best interests duty, RG 175 content standards and DBFO requirements into structured checks, then runs three independent AI models over your document. What reaches you is a short list of gaps that matter, each tied back to the obligation behind it. Put the rules to work on your own document — the first check is free.
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Try AdviserCheck FreeLast updated: 2026-09-12. This guide is for informational purposes only and does not constitute legal advice.