ASIC action against rogue financial services operators at five-year high

Enforcement action against rogue financial services operators is at a five-year high, with the latest numbers from the Australian Securities and Investments Commission (ASIC) revealing that 87 individuals and businesses were removed or restricted from providing financial services in the year to 30 June 2026.

Included in that statistic are 15 financial advisers linked to Shield and First Guardian, and former Melbourne-based financial adviser Barry David King, who ASIC permanently banned for misappropriating client funds and providing false documents.

In total, ASIC delivered 150 enforcement outcomes in 2025/26, reflecting the corporate regulator’s focus on stamping out misconduct across financial, credit and corporate sectors.

According to Sarah Court, ASIC chair, licence cancellations and director disqualifications remain the most efficient enforcement tools, enabling the quick and decisive removal of unsuitable operators to protect consumers and investors.

“They can often be deployed more swiftly than or ahead of court action to help prevent further harm, drive behavioural change and strengthen trust and confidence in Australia’s financial and corporate markets,” she said in a media statement.

“By removing high-risk participants from the market, we are disrupting misconduct at its source and making it harder for those who disregard the law to continue operating.”

Court’s comments come as the corporate regulator prepares to release its 2025/26 annual report in October.

The annual report is also expected to show that over 60 per cent of financial services outcomes and almost 90 per cent of credit-related outcomes resulted in permanent banning orders or licence cancellations.

Court reinforced the regulator’s commitment to strengthening consumer protections and targeting businesses that fail to meet their legal obligations.

“Administrative enforcement outcomes are a powerful way to protect consumers and investors, deter misconduct and maintain confidence in Australia’s financial, credit and corporate markets,” she said.

“If you misuse a position of trust, fail to meet your obligations or engage in misconduct, ASIC can and will act to remove you from the market.”