Big Four Banks Face ASIC Scrutiny Over Wealth Advice
Synopsis
Australia’s major banks face closer ASIC scrutiny as ANZ and Westpac signal plans to expand wealth advice, reviving concerns over conflicts and consumer protection.
ASIC’s wealth advice under close inspection as major banks look to ramp up retail advice and regulator warns of dangers of complacency
Chair of ASIC Sarah Court today warned about dangers of complacency as Australia’s major banks prepare to re-enter the wealth management space and the regulator ramps up its scrutiny of complaints and conflicts of interest.
At a time when the government is considering changes to financial advice regulations, ANZ and Westpac have signalled their intention to return to the retail advice market.
ASIC’s wealth advice focus comes as the government reviews the recommendations of the Financial Services Inquiry into the proposed changes to the DBFO reforms which were due to come into effect from 1 July 2025. Those changes to regulation were designed to drive up availability of financial advice and change the way advice is paid for.
Adviser numbers remain sharply lower
While there were 24,249 advisers on the ASIC Financial Adviser Register and $3.7 trillion in platform funds in Rainmaker Information at the end of June 2019, as at June 2026 there were 15,413 advisers on the register and $1.26 trillion in platform funds in Rainmaker Information.
That decline in numbers is set to be contrasted against the banks’ return to the advice market as they take advantage of the new rules while ASIC remains particularly focused on a number of areas of advice and conduct within the financial services industry.
Enforcement keeps banking conduct in focus
ASIC’s wealth advice review comes against the backdrop of recent enforcement action. During 2025-26, the regulator has resulted in A$$830 million in terms of civil penalty orders, with A$480 million in orders, with A$644 million in remediation or compensation to consumers for Australians affected by financial services conduct breaches during this period.
ASIC’s broader banking supervision continues to focus on areas of harm to consumers. In July this year, it announced that eight banks had agreed to pay more than A$55 million in compensation for mis-selling of offset accounts to more than 200,000 borrowers as part of a review of hundreds of thousands of mortgages.
ASIC’s current wealth advice review therefore forms part of a wider regulatory interest in banking conduct and customer service, financial products and compliance.
Source: Stockhead
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
