Alan Kirkland

ASIC has commenced consultation on guidance and standards to implement new laws for digital asset platforms and tokenised custody platforms commencing on 8 April 2027.

ASIC’s Consultation Paper 392 Digital asset law reform implementation: Proposed standards and guidance (CP 392) outlines its proposed approach to standards and regulatory guidance about complying with the new digital asset framework introduced by the Corporations Amendment (Digital Assets Framework) Act 2026 (DAF Act).

The consultation package includes draft guidance on how to comply with the new laws, proposed standards on asset-holding activities, trading and settlement activities, and proposed financial requirements for licensees.

ASIC Commissioner Alan Kirkland said that ASIC’s proposed guidance and standards recognised the rapid evolution of global markets.

‘Our proposed guidance and standards acknowledge the increasing role of digital assets and tokenisation, including in traditional parts of the financial system,’ said Mr Kirkland.

‘Our approach is based on the principle of “same activity, same risk, same regulatory outcome” to align Australia with the approach of comparable overseas jurisdictions. Bringing digital asset platforms and tokenised custody platforms into the financial services regulatory framework means consumers can have greater confidence when trading digital assets.

‘ASIC’s approach to implementation is designed to balance facilitation of innovation, investment and growth with maintaining the protections that Australians expect.’

ASIC engaged early with industry in developing these proposals and will continue to directly liaise with stakeholders through the consultation period via a series of events and targeted roundtables.

ASIC’s consultation package refers to regulatory design work that is being developed by Government in parallel to this process. This is intended to enable industry to see a complete picture of the future approach.

ASIC’s proposed guidance explains how the digital assets framework applies to:

• operators of Digital Assets Platforms (DAPs) and Tokenised Custody Platforms (TCPs), and others providing financial services for these new products, and
• existing Australian financial services (AFS) licensees, market participants, payments providers and other businesses that use or deal with digital assets.

ASIC’s proposed guidance outlines that firms will need to:

• apply for (or vary) an Australian financial services licence,
• provide customer disclosure documents and platform rules, and
• comply with asset-holding standards, transactional and settlement standards, and net tangible asset requirements, where relevant.

ASIC is also proposing to streamline licensing processes for existing AFS licensees and those who applied for an authorisation in response to Information Sheet 225 Digital assets: Financial products and services (INFO 225) adding DAP or TCP authorisations, to help with a smooth transition to the new regime.

ASIC’s consultation is open until 5pm AEDT 27 November 2026.

ASIC has also published a consultation user guide to help stakeholders navigate the full package and provide relevant feedback.

Submissions should be sent to fintech@asic.gov.au.

Downloads

• Consultation paper 392 Digital asset law reform implementation: Proposed standards and guidance
• User guide for CP 392

Background

DAF Act

The DAF Act amends the Corporations Act and introduces a new regulatory framework for:

• digital asset platforms (DAPs), which involve the holding of digital tokens on behalf of clients and associated platform services, and
• tokenised custody platforms (TCPs), which are arrangements that record underlying assets held for clients as digital tokens.

In April 2026, ASIC set out its roadmap for implementing the new regime to support industry. This also includes preparing industry for changes to licensing application or variation requirements.

ASIC’s proposed guidance has been informed by stakeholder engagement through ASIC’s Digital Asset Advisory Group, regular Fintech Liaison Meetings and international peer regulator forums.

ASIC’s previous work supporting digital assets

INFO 225 clarifies how existing laws apply to digital assets and related products.

INFO 225 was updated in October 2025 to reflect industry feedback from Consultation Paper 381 Updates to INFO 225: Digital assets: Financial products and services (CP 381), which proposed to update guidance to help businesses to determine licence authorisations and regulatory obligations that may apply to digital asset products and services. The existing financial services law is broad and technology-neutral, and already applies to many digital assets.

Transitional arrangements were implemented as a sector-wide no-action position with the release of updated INFO 225 (see Media Release 25-250MR).

In June 2026, ASIC clarified and expanded the full scope and conditions of its no-action position and extended the deadline to 30 September 2026, as a pragmatic response to industry transition challenges.

ASIC has recorded over 140 applications from businesses seeking to provide digital asset-related financial services. This includes more than 110 applications received in response to INFO 225 during the sector-wide no-action period from October 2025 to 30 September 2026.

ASIC’s ongoing work to support innovation

Since 2015, ASIC’s Innovation Hub has helped innovative FinTech and RegTech businesses navigate the Australian regulatory framework. It also provides a platform for domestic and international engagement on financial innovation and RegTech-related developments. ASIC continues to collaborate with Treasury and other agencies on joint initiatives under the Government’s Financial Innovation Strategy, announced in September 2026. This includes modernising Australia’s regulatory sandbox framework to support better testing and adoption.

ASIC has also supported past exploratory work on tokenisation. This includes participating the RBA and DFCRC led CBDC pilot (2023), and Project Acacia (2025-26) which explored the role of digital money in wholesale tokenised asset markets. ASIC continues to work with the RBA and other agencies on further work flowing from Project Acacia.

In May 2026, ASIC published a commissioned report prepared by the DFCRC, Report 834 Innovation in Financial Technology and RegTech (REP 834), to inform ongoing industry engagement on responsible financial innovation.

In June 2026, ASIC published a second report authored by the DFCRC, Report 835 Innovation in Financial Markets and Financial Market Infrastructure (REP 835), which informed ASIC’s work to promote dynamism in Australia’s capital markets and facilitate responsible financial innovation

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Alan Kirkland

The mortgage broking industry should strengthen how it demonstrates that home loan recommendations are in their customers’ best interests, an ASIC review has found.

Released today, ASIC Report 840 Mortgage brokers: Review of best interests duty and complaints handling practices (REP 840) examined 13 credit licensees that make up eight large mortgage broker groups. It looked at how they ensure their credit representatives comply with the mortgage broker best interests duty and consumer complaints.

ASIC Commissioner Alan Kirkland said that the review showed while mortgage brokers had existing processes to support acting in their customers’ best interests, the industry needed to do more to ensure those processes delivered consistently for consumers.

‘Mortgage brokers can play a critical role in helping Australians make one of the most significant financial decisions of their lives.

‘More than 80% of home loans are now arranged through mortgage brokers. With that level of influence comes an obligation to act in consumers’ best interests when recommending a loan,’ Mr Kirkland said.

ASIC’s review found that mortgage brokers’ practices generally aligned with our guidance. However, it also identified that brokers and aggregators could strengthen loan recommendation practices, supervision and complaints handling. This included cases where brokers recommended a loan when a potentially lower cost alternative was available.

Seven of the eight aggregator groups reported that brokers did not recommend the cheapest loan option in more than 20% of cases. While there may be reasons to recommend a higher-cost loan, such as greater benefits from certain loan features, ASIC found instances where brokers did not have clear evidence to support those recommendations.

‘Where a broker recommends a loan that costs more than the available alternatives, consumers should be able to clearly understand why that recommendation delivers greater value for their circumstances,’ Mr Kirkland said.

The review also found that complaints about the best interests duty took longer to resolve than other complaints.

‘When customers raise concerns about a home loan recommendation, they should expect those concerns to be considered and resolved promptly,’ Mr Kirkland said.

‘Our review found complaints being missed, withdrawn without being fully investigated, or delayed. When complaints are not handled properly, confidence in the complaints process can be undermined.’

The report outlines actions for mortgage brokers to strengthen loan recommendation practices, consistent with Regulatory Guide 273 Mortgage brokers: Best interests duty (RG 273). It also highlights opportunities to improve the use of data to identify conduct risks and strengthen complaints handling and reporting practices under Regulatory Guide 271 Internal dispute resolution (RG 271).

‘Acting in customers best interests is fundamental to trust in the mortgage broking industry. Consumers rely on brokers to help them navigate a complex market and recommend products that meet their needs,’ Mr Kirkland said.

‘Licensees should closely monitor recommendations made by brokers operating under their licence, particularly where a lower-cost loan is available. The greater the cost difference, the stronger the evidence needed to show the recommendation is in the consumer’s best interests.

‘Consumers place significant trust in mortgage brokers. Strong supervision, effective monitoring and robust complaints handling help ensure that trust is well placed.’

ASIC expects mortgage broker licensees to carefully consider the findings in this report and take steps to address gaps in their practices.

Background

The best interests duty is a legal obligation requiring mortgage brokers to act in the consumer’s best interests when recommending a home loan.

ASIC’s review covered aggregator groups responsible for approximately two-thirds of mortgage broker representatives in Australia. ASIC obtained data from aggregators covering the period from 1 April 2023 to 31 March 2025.

Aggregator groups reviewed by ASIC

• Australian Finance Group Ltd
• Connective Credit Services Pty Ltd
• Finsure Finance & Insurance Pty Ltd and Beagle Finance Pty Ltd
• Lendi Group Distribution Pty Ltd – part of the Lendi Group (Aussie)
• Loan Market Pty Ltd, LMG Broker Services Pty Ltd and BLSSA Pty Ltd – part of Loan Market Group
• Mortgage Choice Pty Ltd and Smartline Operations Pty Ltd
• Outsource Financial Pty Ltd
• Yellow Brick Road Aggregation Pty Ltd (Vow Financial) and Yellow Brick Road Finance Pty Ltd (Yellow Brick Road)

For consumers

For information about using a mortgage broker and the questions to ask when choosing a home loan that meets your needs, go to ASIC’s free Moneysmart website for consumers.

Download

• Report 840 Mortgage brokers: Review of best interests duty and complaints handling practices (REP 840)
• Regulatory Guide 273 Mortgage brokers: Best interests duty (RG 273)
• Regulatory Guide 271 Internal dispute resolution RG 271

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Sarah Court

ASIC has released the program for its Annual Forum 2026, which will bring together leaders from business, financial services, markets, government, and the community in Sydney on 17 and 18 November.

The Forum’s theme ‘Staying ahead of the next wave’, examines how Australia can safeguard the integrity of its financial system and maintain confidence for consumers and markets in an environment of accelerating and varied global change.

ASIC Chair Sarah Court said the forum would bring together a range of perspectives to explore how Australia’s financial system can anticipate and respond to the next wave of change.

‘Economic pressures, geopolitical uncertainty, and rapid technological innovation are reshaping our financial system and our markets.’

‘The challenge for all of us – government, business and regulators is to address these factors in a way that is front footed and forward thinking.’

‘ASIC’s Annual Forum is an important opportunity to consider how we navigate these changes together. It is also where ASIC will outline its enforcement priorities for the year ahead, helping ensure Australia’s financial system remains resilient in the face of ongoing disruption.’

Highlights of the 2026 program include:

• A keynote address from The Hon Dr Jim Chalmers MP, Treasurer of Australia
• A discussion on the state of the economy bringing together ASIC Chair Sarah Court, RBA Governor Michele Bullock, Productivity Commission Chair Danielle Wood and Coles CEO Leah Weckert
• A session examining how digital assets, retail participation, AI and the growing interconnection of Australian and global markets are changing the way markets operate, with ASIC Commissioner Simone Constant, ASX CEO Anthony Attia, UBS’s Nick Hughes and Betashares CEO Alex Vynokur
• A virtual keynote and Q&A with Martin Wolf CBE, Chief Economics Commentator at the Financial Times in London
• A discussion on how innovation is reshaping how Australians access financial products and services with ASIC Commissioner Kate O’Rourke, CEO, Revolut Bank Matt Baxby, Financial Conduct Authority Head of Innovation Colin Payne, incoming CEO, Redbelly Network Christian Westerlind Wigstrom and Co-Director of the UTS Human Technology Institute Professor Nicholas Davis
• ASIC Commissioner Alan Kirkland leading a discussion on the human face of global disruption with Professor Brendan Murphy AC, Chair, Australian Red Cross Lifeblood, Chandni Gupta, Deputy CEO, Consumer Policy Research Centre and Dr John Coyne, Director, National Security Program, ASPI
• Fireside discussions with Anthropic General Manager of Australia and New Zealand Theo Hourmouzis and Solicitor General Dr Ruth Higgins SC
• A conversation on lifting Australia’s productivity, with ASIC Chair Sarah Court, Treasury Secretary Jenny Wilkinson PSM, NAB CEO Andrew Irvine, and AFR Editor-in-Chief Cosima Marriner.
• The Rest is Politics host Alastair Campbell as the 2026 ASIC Annual Dinner speaker

The Forum will also consider private markets and private credit, trust in professional services firms, the future of financial advice, operational resilience, industry codes, board leadership in a volatile environment, coordination between Australia’s financial regulators, and will announce ASIC’s enforcement priorities for 2027.

The ASIC Annual Forum 2026 will be held on 17 and 18 November at ICC Sydney.

View the full ASIC Annual Forum 2026 program and register.

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Recent data illustrates the scale of that shift. The State Street/Investment Trends 2026 Managed Accounts Report, based on a survey of more than 1,000 Australian financial advisers, found 60% of advisers now utilise managed accounts, with 73% of them using Separately Managed Accounts (SMAs) as a core portfolio allocation. The latest Managed Accounts FUM Census, published by the Institute of Managed Account Professionals (IMAP) in conjunction with Milliman, reported the Australian managed accounts market exceeded $292.9 billion in funds under management as of 31 December 2025, with SMAs continuing to represent the largest and fastest-growing segment.

Early adoption of managed accounts was largely driven by operational efficiencies, including centralised portfolio management, improved implementation consistency and time savings for advisers. As the market has matured, attention has shifted towards the governance, portfolio construction, implementation and transparency underpinning long-term investor outcomes, alongside a broader range of investment solutions spanning active and passive strategies, retirement-focused portfolios and increasingly sophisticated multi-asset approaches.

Regulatory attention has intensified in step with the sector’s growth. In an October 2025 address, ASIC Commissioner Alan Kirkland said managed accounts are playing an increasing role in Australia’s investment landscape, and confirmed that ASIC’s 2025-26 Corporate Plan has identified managed accounts as a priority area for surveillance, with particular focus on how licensees manage general obligations, identify and manage conflicts of interest, and ensure products continue to deliver appropriate client outcomes.

For advisers, this is occurring alongside an evolving advice framework in which the Best Interests Duty remains central to product selection. External research provides an important input into due diligence, but does not replace an adviser’s obligation to understand the products they recommend and satisfy themselves those recommendations remain appropriate for their clients’ objectives and circumstances.

As managed accounts have matured, so too has the nature of adviser due diligence, moving beyond questions of historical performance, asset allocation and fees towards how investment decisions are governed, how portfolios are implemented, and whether processes are sufficiently transparent to support consistent client outcomes.

Read the full insight.

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Alan Kirkland

ASIC is working alongside 16 global regulators as part of its crackdown on unlawful social media ‘finfluencers’, amid growing concern about the influence of financial information online, particularly among younger Australians.

Warning notices have been issued to four finfluencers suspected of providing unlicensed financial advice or engaging in misleading or deceptive conduct. ASIC has also commenced a review of several Australian Financial Services (AFS) licensees and their supervision of 15 finfluencers operating under their licences.

The action is intended to disrupt unlawful finfluencer online promotion before consumers suffer financial harm.

The warning notices to the four finfluencers relate to suspected provision of unlicensed financial advice, including promoting claims of guaranteed returns, which may also be misleading or deceptive.

ASIC’s action formed part of the second Global Week of Action Against Unlawful Finfluencers, involving 17 regulators globally, including ASIC, across Asia, Europe, North America, South America and the Middle East to disrupt unlawful online financial promotion and warn consumers about misinformation.

The continued crackdown reflects ASIC’s concern about the growing influence of social media on financial decision making.

Recent Moneysmart research shows that 63% of Gen Z Australians (aged 18–28) rely on social media for financial information, with more than half saying they somewhat or completely trust financial information on social media (56%) and from finfluencers (52%) (26-049MR).

ASIC Commissioner Alan Kirkland said, ‘Unlawful finfluencer activity doesn’t respect borders, which is why regulators are taking strong action together for a second year in a row.

‘What people see online is shaped by algorithms designed to drive clicks and engagement, rather than promoting accurate information. This means consumers are more exposed to biased or misleading content,’ Mr Kirkland said.

ASIC’s surveillance focused on finfluencers targeting Australian investors and discussing a range of financial products, including leveraged derivatives, shares and exchange-traded funds.

Commissioner Kirkland continued, ‘Finfluencers must either hold an AFS licence or operate as an authorised representative to legally provide financial product advice or arrange for their followers to deal in financial products.

‘When viewing financial content on social media, we urge Australians to check a creator’s credentials, and sense‑check the information before acting on it.

‘If someone on social media is promising easy money or guaranteed returns, there is a real risk they’re breaking the law, and you could be the one who loses money,’ Mr Kirkland said.

Consumers and investors can check whether a person or business is licensed or authorised using ASIC’s professional registers search tool.

ASIC reminds licensees of their obligations

For the first time since issuing Information Sheet 269 Discussing financial products and services online (INFO 269) in 2022, ASIC is reminding licensees about their supervisory obligations when engaging finfluencers.

Under these arrangements, unlicensed finfluencers may operate as authorised representatives of AFS licensees, however responsibility for supervising finfluencer conduct and the liability for any breaches remains with the licensee.

As part of this, ASIC has contacted and met with three AFS licensees to review their supervision of 15 finfluencers operating as authorised representatives and reminding them of their legal supervisory obligations.

ASIC expects licensees that authorise finfluencers to have adequate, documented arrangements in place to actively supervise their conduct, and to maintain records of that supervision.

‘Licensees remain responsible and liable for what their representatives say and do online,’ Mr Kirkland said.

‘We expect active supervision, not a set‑and‑forget approach.’

ASIC will continue monitoring social media activity and may take enforcement action where finfluencer conduct or licensee failures place Australian consumers at risk.

Australians should always check whether a person or business is licensed or authorised before acting on financial advice they see online.

‘If a social media influencer isn’t licensed or authorised, they cannot offer financial advice in Australia and could face up to five years’ imprisonment or million-dollar fines,’ Mr Kirkland said.

Moneysmart provides free, independent information to help consumers make informed decisions.

Suspected unlicensed finfluencer activity can be reported to ASIC via the Reporting misconduct to ASIC webpage, or by calling 1300 300 630, so that ASIC can consider appropriate regulatory action.

Downloads

• Template letter to suspected unlawful finfluencers (PDF 253 KB)
• Template letter to AFS licensees (PDF 248 KB)
• Graphic: Finfluencer red flags (PNG 1.6 MB) 

Background

Financial services laws protect investors and promote market integrity. They set minimum requirements and provide important protections for investors if something goes wrong.

ASIC monitors select online financial discussion by influencers who feature or promote financial products for any misleading or deceptive representations or unlicensed financial services.

In March 2026, ASIC urges Gen Z to ‘sense-check’ money advice as social media fuels riskier financial decisions (26-049MR).

ASIC has previously taken action against licensees who have failed to maintain their licensing supervisory arrangements.

• In February 2026, ASIC cancelled the AFS licence of Pulse Markets Pty Ltd for, amongst other things, failing to take reasonable steps to ensure its representatives comply with financial services laws (26-027MR).
• In December 2024, Sanlam Private Wealth Pty Ltd accepted a Court Enforceable Undertaking following an ASIC investigation for failing to supervise its 113 representatives (24-290MR).

ASIC issued Information Sheet 269: Discussing financial products and services online (INFO 269) in March 2022, outlining how the financial services laws apply to social media influencers and the obligations of AFS licensees that engage them.

In addition to ASIC, the 16 regulators involved in the Global Week of Action Against Unlawful Finfluencers included:

• Belgium, Financial Services and Markets Authority
• Brazil, Comissão de Valores Mobiliários
• Canada, British Columbia, British Columbia Securities Commission
• Canada, Ontario, Ontario Securities Commission
• Canada, Quebec, Autorité des marchés financiers
• Denmark, Financial Supervisory Authority
• Hong Kong, Securities and Futures Commission
• India, Securities & Exchange Board of India
• Ireland, Central Bank of Ireland
• New Zealand, Financial Markets Authority
• Norway, Finanstilsynet
• Qatar, Qatar Financial Markets Authority
• Qatar, Qatar Financial Centre Regulatory Authority
• Singapore, Monetary Authority of Singapore
• United Arab Emirates, Capital & Markets Authority
• United Kingdom, Financial Conduct Authority

Following ASIC’s 2025 action against 18 suspected unlawful finfluencers (news item):

• several became authorised representatives
• others amended their content or ceased targeting Australian consumers, and
• offshore operators remain under scrutiny.

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Alan Kirkland

Australians now have unprecedented access to consumer complaints data following the launch of ASIC’s new interactive dashboard.

The Internal Dispute Resolution (IDR) data dashboard enables users to compare the complaints reported by individual financial firms for the first time, including their handling of complaints associated with specific products like home loans, credit cards, life and general insurance, or financial advice.

ASIC Commissioner Alan Kirkland said the data dashboard would enhance transparency by providing valuable insights into complaints volumes and trends, giving greater visibility of consumer concerns and potential harm across the financial services industry.

‘Transparency is crucial to supporting a fair, strong, and efficient financial system. The launch of our new internal dispute resolution data dashboard marks a significant step in improving public scrutiny of the system,’ he said.

Other key features of the dashboard include:

• an overview of complaints volumes and trends over specified reporting periods
• categorised breakdowns of complaints by issue and complaint outcome
• complaints resolution times for individual financial firms, and
• information about monetary remedies paid.

Commissioner Kirkland added that in addition to empowering consumers, the public-facing dashboard promotes greater accountability within the financial services industry and provides ASIC with a valuable data set to inform regulatory decision making.

‘Beyond providing for a comparison between individual firms, this dashboard provides a bird’s-eye view of how the Australian financial sector handles complaints,’ said Mr Kirkland.

‘This makes it easier to identify key trends, including the reasons complaints are lodged, increases or decreases in complaints handling times, and the sorts of products that attract the most complaints. This in turn allows us to flag emerging issues for industry attention before they become serious problems.’

The dashboard also includes important information for users about how to navigate the new dashboard, how to interpret the data, definitions of key terms, and an explanation of the methodology.

This IDR data publication aligns with the Australian Financial Complaints Authority’s reporting of external dispute resolution (data to provide a complete picture of the financial dispute resolution framework.

In October, ASIC also launched its Reportable Situations dashboard, which contains granular information about financial services and credit licensees’ self-reported breaches.

Interactive dashboard

Internal Dispute Resolution data dashboard

Additional information

• ASIC outlines approach to breach and complaints data publications
• 25-054MR ASIC consults on plan to increase visibility of firms’ breach and complaints data
• Reportable situations insights
• 24-264MR ASIC flags key observations from inaugural IDR data publication
• How to complain

Background

The IDR regime requires certain financial firms to report all complaints received through their IDR processes. ASIC is empowered to publish firm level information about complaints received.

In previous years, ASIC published thematic reports on IDR but has since foreshadowed the intention to publish more granular data following consultation.

ASIC consulted on its proposed approach over April and May 2025, before publishing a summary of feedback in September 2025 outlining its final approach to the IDR data publication.

The publication approach was determined following consideration of 47 submissions received in response to CP 383 Reportable situations and internal dispute resolution data publication (CP 383).

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Alan Kirkland

Poor financial advice related to the establishment of self-managed super funds (SMSFs) could be putting some Australians’ retirement savings at risk, an ASIC review has found.

ASIC’s risk-based review of 100 financial advice files relating to the establishment of SMSFs has identified concerns that 62 files failed to demonstrate compliance with the best interests duty, with 27 files – over a quarter – raising significant concerns about client detriment relating to recommendations to set up an SMSF.

Barely a third of advice files – 38 of 100 – demonstrated compliance with the longstanding obligation for advisers to act in clients’ best interests.

ASIC Commissioner Alan Kirkland said, ‘People often set up an SMSF because they think it will give them more control over their retirement savings, but they aren’t suitable for everyone.

‘SMSF trustees should be aware of the associated costs, responsibilities and risks. People who move their super from an APRA-regulated fund to an SMSF also lose important protections, including the benefits of prudential regulation and the ability to make a complaint about the fund or its trustees to AFCA.

‘Financial advisers who recommend that clients establish SMSFs without properly considering whether it is suitable for their objectives, financial situation and needs, are not helping them take control of their future — they are placing it at risk.’

The SMSF sector in Australia is growing, accounting for around $1 trillion, or nearly a quarter, of the $4.3 trillion superannuation sector. In the year to June 2025, 41,980 new funds were established, an increase from 33,032 establishments the previous year.

Commissioner Kirkland stressed the importance of maintaining high standards of personal financial advice in the context of this growth in SMSFs.

‘Collapses like those involving Shield and First Guardian show us the worst-case scenario for what happens when people receive poor advice to switch superannuation funds and make high-risk investments,’ he added.

ASIC’s review also found that despite some licensees requiring advice to be pre-vetted before reaching clients, non-compliant advice continued to slip through the cracks, with 33 of the 47 files that contained records of pre-vetting still indicating a failure to comply with the best interests duty.

Similarly, while all licensees had policies managing conflicts of interest, in 24 of the 27 client files that raised concerns about client detriment, ASIC was concerned that the financial adviser failed to prioritise the interests of the client above their own interests or that of their advice licensee or an associate.

Commissioner Kirkland said that the report contains serious messages for both advisers and advice licensees.

‘Financial advisers should be providing their clients with rigorous, well considered advice, not simply acting as order-takers. They should never place their own interests ahead of those of their clients.

‘The report we are releasing today contains 8 action points for advisers and 4 action points for licensees to improve their practices when it comes to SMSF establishment advice. All advisers and licensees should carefully consider the findings of our review.

‘ASIC is considering a range of regulatory responses, including enforcement action, where we have significant concerns about poor and unacceptable financial advice,’ Commissioner Kirkland concluded.

Downloads

REP 824 Review of SMSF establishment advice

Appendix 1 to Report 824 (PDF 118 KB)

Self-managed super fund (SMSF) – Moneysmart.gov.au

More information

INFO 274 Tips for giving self-managed superannuation fund advice

RG 175 AFS licensing: Financial product advisers—Conduct and disclosure

RG 244 Giving information, general advice and scaled advice

Background

REP 824 outlines findings from ASIC’s review of the quality of personal advice provided by financial advisers to retail clients about establishing an SMSF, and the role of advice licensees that authorised the advisers who provided the advice. ASIC undertook the review to understand why some retail clients were advised to establish an SMSF even though it was not suitable or beneficial for them and could adversely affect their retirement outcomes.

ASIC examined the advice files of 100 retail clients who had each recently received advice to establish an SMSF or make an initial rollover to an SMSF and assessed whether financial advisers had complied with the law when providing that advice.

ASIC also reviewed policies, procedures and other guidance documents from 12 advice licensees to examine their role in the provision of SMSF establishment advice by their financial advisers.

ASIC has taken significant action against SMSF-related misconduct. In 2025, ASIC disqualified, imposed conditions on or cancelled the registration of 48 SMSF auditors. In April this year, it secured an $11 million penalty in the Federal Court against Equiti Financial Services over ‘cookie cutter’ advice given to clients, resulting in the establishment of SMSFs to purchase properties. A full list of enforcement actions dating back to 2020 is outlined in Appendix 1 of REP 824.

While most consumers affected by the Shield and First Guardian collapses invested via superannuation platforms, some invested via SMSFs.

ASIC is committed to providing Australians with the information they need to make confident and informed decisions about retirement. ASIC’s Moneysmart has dedicated information to help Australians determine their suitability for an SMSF.

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Alan Kirkland

ASIC has clarified how existing laws apply to digital assets, giving investors improved protections and providing firms with greater certainty to operate and innovate. ASIC also confirmed transitional support ahead of proposed law reforms.

Stablecoins, wrapped tokens, tokenised securities and digital asset wallets are among the digital asset products that ASIC considers to be financial products in its updated guidance.

ASIC Commissioner Alan Kirkland said, ‘Distributed ledger technology and tokenisation are reshaping global finance. ASIC’s guidance provides the regulatory clarity that firms have been calling for to innovate confidently in Australia.

‘Many widely traded digital assets are financial products under current law – and will remain so under the Government’s proposed law reform – meaning many providers require a financial services licence. Licensing ensures consumers receive the full suite of protections under the law and allows ASIC to act when poor practices lead to harm.

‘We recognise that firms will need time to consider the updated guidance and apply for licences, so ASIC has granted a sector-wide no-action position until 30 June 2026. ASIC also proposes to provide relief for stablecoin and wrapped token distributors to smooth the transition to proposed law reform.’

ASIC has made an in-principle decision to grant proposed regulatory relief for distributors of certain stablecoins and wrapped tokens, and certain relief for custodians of digital assets that are financial products. Feedback is invited on the draft relief instruments until 12 November 2025.

ASIC also released today a summary of feedback themes from submissions to Consultation Paper 381 Updates to INFO 225: Digital Assets: Financial Products and Services (CP 381). Feedback from the consultation informed the no-action position, and ASIC’s decision to provide the proposed relief and include additional examples in the guidance.

ASIC will also factor in the current no-action position when considering historical conduct but will continue to act against egregious conduct where we see significant consumer harm or widespread systemic misconduct.

Downloads

• Information Sheet 225 Digital assets: Financial Products and Services (INFO 225)
• CS 32 Proposed relief for eligible stablecoins and wrapped tokens, and extension of omnibus accounts for digital asset custody
• ASIC class no-action letter for digital asset businesses

Background

ASIC first published INFO 225 in September 2017, with updates made in 2018, 2019 and 2021.

INFO 225 is aimed at all firms involved in digital assets, including:

• existing financial services and financial markets businesses, including those exploring the application of blockchain technology to existing financial products and real-world assets (e.g. tokenisation),
• new digital asset businesses,
• brokers and intermediaries,
• professional advisers to the above businesses.

In December 2024, ASIC consulted on updates to INFO 225 (CP 381) to clarify when certain digital assets are financial products. CP 381 also sought feedback on the application of the existing AFS licensee obligations to digital asset businesses, potential relief for wrapped tokens and ‘stablecoins’ for the transition to the Government’s proposed DAP and payment regimes, and a potential class ‘no action’ position for digital asset businesses to transition to licensing.

Updated INFO 225 is aligned to and supports the Government’s broader work on the proposed DAP reforms. INFO 225 complements the proposed reforms by clarifying what is a financial product and service under the current law.

The INFO 225 package today builds on practical relief ASIC has given this year to facilitate the Reserve Bank of Australia’s Project Acacia, a research project related to wholesale tokenised asset markets, and the recent relief for distribution of certain stablecoins issued under a licence.

Together, these show ASIC’s ongoing commitment to supporting responsible innovation in the financial services sector.

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Alan Kirkland

ASIC is calling on financial services entities to strengthen governance and risk management after a review found weaknesses in the use of offshore service providers (OSPs) exposing consumers and investors to potential harm.

The review into the use of OSPs by financial advice licensees and responsible entities (REs) of registered managed investment schemes found that the quality of risk management arrangements relating to their use varied significantly, with some entities failing to have a framework in place.

ASIC Commissioner Alan Kirkland said that Australian financial services (AFS) licensees are ultimately responsible for the operation of their businesses, even when they outsource to offshore service providers directly or through an intermediary.

‘Advice licensees and REs can outsource services but they cannot outsource their fundamental obligations,’ said Commissioner Kirkland.

‘When licensees neglect their responsibilities, consumers, investors, and financial services businesses can be exposed to harm, such as exposure of personal information through cyber incidents.’

Commissioner Kirkland said Australian AFS licensees should have sufficient skills to independently identify material risks and to assess an OSP’s performance and ongoing suitability.

‘The more critical the outsourced function, the greater the risks to consumers and investors,’ Commissioner Kirkland said.

‘The risks can be exacerbated when outsourced functions are not supervised adequately, particularly if they are outsourced internationally.’

Commissioner Kirkland also flagged critical risks associated with the loss of control over a businesses’ key functions to OSPs, disruptions to operational services, and conflicting obligations for OSPs subject to foreign laws.

‘Financial services firms cannot drop their guard. Cyber-attacks, for example, are more prevalent and growing in sophistication. All licensees must proactively review governance frameworks and address issues that threaten to undermine public confidence in their business and in turn, the financial system.’

ASIC will continue to monitor the governance and risk management frameworks of financial services entities, and where necessary, hold them to account for failing to have the right processes in place to protect consumers and investors’ interests.

In relation to general concerns about cybersecurity, ASIC has taken enforcement action against FIIG Securities and Fortnum Private Wealth for alleged failures to adequately manage cybersecurity risks.

In 2022, the Federal Court also ruled in ASIC’s favour in a landmark case against RI Advice, which was found to have breached its license obligations to act efficiently and fairly when it failed to have adequate risk management systems to manage its cybersecurity risks.

Background

As set out in ASIC regulatory guidance, it is open to AFS licensees to outsource functions. However, regardless of whether these functions are outsourced directly or via an intermediary business, licensees remain responsible for complying with their obligations.

Where functions are outsourced, licensees must:

• have measures in place to ensure that due skill and care is taken in choosing suitable service providers,
• monitor the ongoing performance of service providers, and
• appropriately deal with any actions by service providers that breach service level agreements or the licensee’s general obligations (see ASIC Regulatory Guide 104 [paragraph 104.36]).

Failing to adequately supervise outsourced functions could lead to detrimental effects on the operation of the licence, its compliance with legal obligations and cause harm to consumers.

Downloads

Review of offshore outsourcing – Financial services advice licensees

Review of offshore outsourcing – Responsible entities

More information

• RG 104 AFS licensing: Meeting the general obligations
• RG 132 Funds management: Compliance and oversight
• RG 259 Risk management systems of fund operators

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