This week, the advice profession witnessed a stark dichotomy: a wave of decisive regulatory enforcement actions sweeping through the industry, contrasted with a moment of pragmatic relief from ASIC on fee consents. The regulator’s global crackdown on ‘finfluencers’ and multiple adviser bans signal a zero-tolerance approach to misconduct, reinforcing the high stakes of compliance. In a significant shift, the FAAA has supported AFCA’s ‘name and shame’ powers, reflecting a maturing perspective on professional accountability. This unfolds as advisers continue to navigate complex client emotions around market volatility and intergenerational wealth, proving our value lies as much in behavioural coaching as in technical strategy.
Regulatory Pressures & Industry Response
This week was defined by a torrent of regulatory activity, as ASIC unleashed a multi-pronged enforcement blitz while simultaneously providing critical, if temporary, relief on a key compliance headache.
The regulator's enforcement arm was exceptionally active, demonstrating its commitment to removing bad actors from our profession. In a series of decisive actions, ASIC issued a 10-year ban to former adviser Glenda Rogan over a $15 million cryptocurrency scam and permanently banned the responsible manager of Financial Services Group Australia, cancelling the firm's AFSL. The action against Financial Services Group Australia was linked to the failed Shield Master Fund, continuing the regulatory fallout from that collapse. These moves underscore a clear message: there is no room for those who fail to uphold their fundamental obligations to clients and the law.
In a major development, ASIC put the burgeoning ‘finfluencer’ industry squarely in its crosshairs. As part of a global campaign, the regulator put 18 Australian finfluencers on notice for potentially providing unlicensed financial advice. ASIC’s warning that “popularity doesn’t equal credibility” serves as a crucial reminder to consumers and a clear line in the sand for social media personalities operating on the fringes of regulated advice. This crackdown is a welcome move to protect consumers from unqualified and often conflicted commentary masquerading as advice.
Amid this enforcement storm, ASIC also delivered a dose of pragmatism. The regulator granted limited, forward-looking relief for advice firms with deficient ongoing fee consent forms. This "no-action" position acknowledges that with the Delivering Better Financial Outcomes (DBFO) reforms set to overhaul the consent framework, forcing firms into costly remediation for a soon-to-be-replaced system would be an inefficient use of resources. While this provides breathing room, advisers are reminded they must still prepare for the new informed consent changes for risk advice under DBFO.
In a move that signals a significant shift in industry sentiment, the Financial Advice Association Australia (FAAA) has publicly backed AFCA's power to 'name and shame' firms that fail to comply with its determinations. This represents a mature and confident stance on professional accountability, supporting measures that hold non-compliant firms responsible and protect the reputation of the broader profession.
Finally, the technical complexities of the impending Division 296 tax on super balances over $3 million continue to create confusion. Experts have highlighted that certain add-backs are causing confusion, requiring advisers to be diligent in their analysis and client communications around this disruptive new tax.
Practice Management & Growth
The profession's capacity continues to be a central concern, with industry watchers questioning if the end of the financial year will bring a net loss of advisers. This anxiety over adviser numbers and sustainability comes as the industry continues to consolidate and evolve.
The M&A trend remained prominent, with Centrepoint Alliance finalising its $980,000 acquisition of Brighter Super's advice clients, further demonstrating how scale and strategic acquisitions are shaping the licensee landscape. This move follows a pattern of well-capitalised firms absorbing client books to build national scale.
Beyond traditional advice models, the wealth management ecosystem is expanding. A new report highlights that Australia is part of the fastest-growing region for family offices globally. The increasing sophistication of ultra-high-net-worth clients is driving demand for these integrated service models, creating both competition and partnership opportunities for financial advice practices that can cater to this complex segment. The challenge for many practices will be adapting their service proposition to meet the intricate needs of multigenerational wealth management.
Client Engagement & Retention
The immense opportunity presented by intergenerational wealth transfer has again come into sharp focus. New research reveals that dissatisfaction among beneficiaries of inheritances presents a significant opening for advisers. Many inheritors feel unprepared and unsupported, highlighting a critical gap that proactive advisers can fill by engaging with the whole family, not just the primary wealth holder. However, this also presents challenges, with advisers needing to navigate the behavioural conflicts that can arise when advising multiple generations of the same family.
Reinforcing the themes of recent weeks, the role of the adviser as a behavioural coach remains paramount. With ongoing economic uncertainty seeing clients lean more on advisers for guidance, our ability to manage emotions and provide context is a core part of our value. Helping clients shift their view on volatility from a threat to a manageable aspect of long-term investing is a critical skill that separates professional advisers from a simple product transaction.
As the end of the financial year approaches, advisers are also demonstrating their value through timely, practical guidance. Ensuring clients are sorting contributions before super funds shut the gate for EOFY is a tangible example of how we help clients avoid costly mistakes and maximise opportunities within a complex system.
Technology & Innovation
The conversation around technology in advice is maturing from adoption to optimisation. The key question for practices is no longer if they should use AI, but if they can set up cost-effective AI processes that deliver real efficiency gains. As seen in previous weeks, with AI adoption rates in Australian practices exceeding 70%, the focus is now on integrating these tools in a way that is commercially viable and genuinely frees up adviser time for high-value client work.
Product innovation continues to be driven by technology and adviser demand. The managed accounts trend remains strong, with Fidelity International launching its first global equity Separately Managed Account (SMA) and Netwealth adding the Activam SMA range to its platform. These developments provide advisers with more tools to build diversified, scalable portfolios for clients.
Technology is also being leveraged to fill knowledge gaps. Coller Capital has launched a secondaries education platform for advisers, helping practitioners build expertise in alternative asset classes that are increasingly in demand from sophisticated clients seeking diversification. This highlights a future where technology will not only streamline processes but also serve as a crucial enabler of continuous professional development.
Context and Looking Forward
Current Significance: This week crystallises the profession's most acute challenge yet: an immediate existential threat to nearly 30% of advisers who haven't met qualification standards by January 2026, occurring precisely when political advocacy capability has been weakened by Jane Hume's removal from Coalition leadership. The appointment of Pat Conaghan, who lacks an economic background, to shadow financial services represents a significant knowledge gap at a critical policy juncture. However, the FAAA's breakthrough guidance on tax deductibility of advice fees offers genuine progress on accessibility, potentially addressing the stark reality that only 6% of Australians will pay current market rates while practices need $4,000 annual fees for viability.
The contradiction between robust M&A activity (LGT Crestone's $5 billion acquisition achieving 93% client retention) and minimal new adviser entrants (only four this period) underscores a maturing market where scale and capability increasingly determine survival, consistent with the "super firm" consolidation trend observed throughout 2025.
Forward Outlook: The January 2026 compliance deadline will likely trigger the most significant single adviser exodus since the Royal Commission, potentially reducing numbers below 12,000—a devastating blow to accessibility. However, this crisis may accelerate the industry's structural transformation, with AI-enabled practices (now 74% adoption rate) positioned to capture displaced client relationships. The tax deductibility breakthrough provides a critical tool for surviving practices to demonstrate value and justify fees. Political uncertainty around DBFO implementation will persist until clearer Coalition policy emerges, though fundamental reform momentum appears unlikely regardless of leadership changes. Practices that can harness technology to serve displaced clients while leveraging tax deductibility to improve affordability may emerge stronger from this consolidation crisis.
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