Financial advice update – February 2026

[Newsroom](https://www.asic.gov.au/newsroom) PrintShare - [X Opens in new window](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.asic.gov.au%2Fabout-asic%2Fnews-centre%2Fnews-items%2Ffinancial-advice-update-february-2026%2F&text=Financial%20advice%20update%20%E2%80%93%20February%202026) - [Facebook Opens in new window](https://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.asic.gov.au%2Fabout-asic%2Fnews-centre%2Fnews-items%2Ffinancial-advice-update-february-2026%2F) - [LinkedIn Opens in new window](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.asic.gov.au%2Fabout-asic%2Fnews-centre%2Fnews-items%2Ffinancial-advice-update-february-2026%2F) - [Email Opens in new window](mailto:?subject=Financial%20advice%20update%20%E2%80%93%20February%202026&body=An%20article%20from%20ASIC%3A%0D%0A%0D%0AFinancial%20advice%20update%20%E2%80%93%20February%202026%0D%0A%0D%0Ahttps%3A%2F%2Fwww.asic.gov.au%2Fabout-asic%2Fnews-centre%2Fnews-items%2Ffinancial-advice-update-february-2026%2F) The Financial advice update is a round-up of regulatory developments and issues affecting financial advice. It covers all areas of financial advice regulation and includes a broad range of content relevant to Australian financial services (AFS) licensees who are advice licensees and financial advisers. The topics of this update are: - [Review of advice licensees using lead generation services](https://www.asic.gov.au/about-asic/news-centre/news-items/financial-advice-update-february-2026/#lead) - [SMSF establishment advice](https://www.asic.gov.au/about-asic/news-centre/news-items/financial-advice-update-february-2026/#smsf) - [Compliance with Internal Dispute Resolution (IDR) obligations](https://www.asic.gov.au/about-asic/news-centre/news-items/financial-advice-update-february-2026/#idr) - [Reportable Situations (RS)](https://www.asic.gov.au/about-asic/news-centre/news-items/financial-advice-update-february-2026/#rs) - [Offshore outsourcing arrangements](https://www.asic.gov.au/about-asic/news-centre/news-items/financial-advice-update-february-2026/#offshore) - [Enforcement matters](https://www.asic.gov.au/about-asic/news-centre/news-items/financial-advice-update-february-2026/#enforcement) - [Update from the Financial Services and Credit Panel](https://www.asic.gov.au/about-asic/news-centre/news-items/financial-advice-update-february-2026/#fscp) - [Additional reference material](https://www.asic.gov.au/about-asic/news-centre/news-items/financial-advice-update-february-2026/#additional-ref) - [Subscribing to ASIC’s Newsroom](https://www.asic.gov.au/about-asic/news-centre/news-items/financial-advice-update-february-2026/#subscribe) ## ASIC commences new review of advice licensees that use lead generation services ASIC has commenced a new review of financial advice licensees using lead generation services. This is part of ASIC’s ongoing work to address practices that inappropriately or unnecessarily encourage consumers to switch their superannuation. Lead generation is a marketing activity designed to create consumer interest in a product or service, with the goal of persuading consumers to purchase the product or service. ASIC is concerned that certain practices associated with some lead generation services in financial advice and superannuation may expose consumers to a risk of significant losses. The review includes identification of financial advice businesses using lead generation services and ASIC has published a [list of involved entities](https://moneysmart.gov.au/investment-warnings/lead-generation-and-how-it-works), referral partners, and advice licensees or corporate authorised representatives that acquired leads since 1 July 2024. [Read the media release announcing this review](https://www.asic.gov.au/about-asic/news-centre/find-a-media-release/2026-releases/26-029mr-asic-commences-new-review-of-advice-licensees-that-use-lead-generation-services/ "26-029MR ASIC commences new review of advice licensees that use lead generation services"). The naming of the entities in this list should not be construed as an indication by ASIC that a contravention of the law has occurred, nor should it be considered a reflection upon any person or entity. ASIC warns that lead generators that mislead consumers, utilise high pressure tactics or provide financial services without a licence will risk contravening the law. Licensed persons or entities that engage the services of lead generators acting in this way, share this risk. ASIC is putting participants on notice and will consider taking enforcement action where we detect evidence of contraventions of the law. ## Review of SMSF establishment advice On 6 November 2025, ASIC released [REP 824](https://www.asic.gov.au/regulatory-resources/find-a-document/reports/rep-824-review-of-smsf-establishment-advice/ "REP 824 Review of SMSF establishment advice") _Review of SMSF establishment advice_ following our review of the provision of personal SMSF establishment advice to retail clients. The purpose of our review was to understand why some retail clients are advised to establish an SMSF even though an SMSF is not suitable or beneficial for them and may adversely affect their retirement outcomes. ASIC used risk indicators to select a sample of SMSF establishment advice files for our review. The sample was not selected with the intention of being random or representative of the financial advice sector. We reviewed the advice files of 100 retail clients across 27 financial advisers and 12 advice licensees, and reviewed policies, procedures and other guidance documents from the advice licensees to examine the role of the advice licensees in their financial advisers’ provision of SMSF establishment advice. Of the 100 client files we reviewed: - in 38 files, the financial adviser demonstrated compliance with the best interests duty and related obligations, and - in 62 files, the financial adviser failed to demonstrate compliance with the best interests duty and related obligations. We had significant concerns about client detriment in relation to the SMSF establishment advice in 27 of these files. Our significant concerns related to a small subset of financial advisers. The key issues identified included financial advisers: - not basing all judgements on clients’ relevant circumstances, including inappropriately using the notion of control to justify recommending SMSFs without exploring what control meant to the clients - acting as order-takers and not conducting a reasonable investigation and assessment of financial products, and - not giving priority to the interests of clients where there were conflicts of interest, including in relation to advice to establish an SMSF to acquire off-the-plan properties through limited recourse borrowing arrangements. Our review of advice licensees’ written policies and procedures identified that: - the financial advisers of advice licensees whose policies and procedures covered the SMSF suitability factors and additional SMSF considerations from ASIC’s Information Sheet 274 _Tips for giving self-managed superannuation fund advice_ ( [INFO 274](https://www.asic.gov.au/regulatory-resources/financial-services/giving-financial-product-advice/tips-for-giving-self-managed-superannuation-fund-advice/ "Tips for giving self-managed superannuation fund advice")), tended to demonstrate higher levels of advice compliance and their advice raised fewer concerns about client detriment. - pre-vetting was often ineffective. Of the 47 client files that contained records of pre-vetting, in 33 instances we were concerned that the financial adviser failed to comply with the best interests duty and related obligations. This included 13 files that also led to significant concerns about client detriment in relation to the advice, and - all 12 advice licensees had policies and procedures in place to manage conflicts of interest. However, we were concerned about the effectiveness of the