Preparing for 2027: Early Regulatory Changes Advisers Should Watch

As 2027 approaches, Australian financial advice firms are preparing for another year of regulatory developments that could influence how they operate, manage risks, and protect their clients.

From digital asset licensing and stronger scam prevention measures to proposed payment reforms and growing AI-related privacy obligations, the evolving regulatory landscape highlights the importance of staying informed, reviewing existing processes and maintaining adaptable advice operations.

To explore what these changes could mean for financial advice firms, Chris Miller, VBP's Product Development Manager – Paraplanning, shares his perspective on why early preparation matters and how firms can build the operational capacity to respond to an evolving regulatory landscape. 

Digital Assets Framework: Strengthening Oversight of Digital Investments

The Corporations Amendment (Digital Assets Framework) Act 2026 is scheduled to commence in April 2027, introducing new licensing requirements for digital asset platforms and tokenised custody platforms under Australia's financial services regulatory framework. 

According to the Australian Securities and Investments Commission (ASIC), the reforms aim to strengthen consumer protection through clearer licensing, asset-holding and operational standards.

For financial advice firms whose clients have exposure to cryptocurrency or tokenised investments, the changes may warrant a review of approved product lists (APLs), platform providers and custody arrangements. Understanding which providers fall within the new licensing regime and monitoring ASIC's guidance can help firms assess potential implications for their advice processes and existing investment arrangements. 

As Chris explains, understanding regulatory changes early gives practices more time to assess their options and make informed decisions.

This is particularly relevant to investment platforms and managed funds, which play a central role in many advice practices. When regulatory reforms affect fees, product suitability or disclosure requirements, firms may need to review their approved product lists or move clients to alternative arrangements.

Taking action early gives practices more time to assess their options, minimise unnecessary costs or tax implications, and avoid rushed decisions that could affect client outcomes.

Scams Prevention Framework: Protecting Clients Against Emerging Threats

As financial scams become increasingly sophisticated, protecting client information and financial transactions remains a priority across the financial services industry.

Under the Australian Government's Scams Prevention Framework, designated banking, telecommunications and digital platform services will be subject to stronger obligations to prevent, detect, disrupt, report and respond to scams. Most obligations will commence on 31 March 2027, with additional requirements expected later in the year.

Although these requirements do not automatically extend to financial advice firms, they highlight the importance of maintaining effective client protection measures.

For advisers, reviewing identity verification procedures, payment instruction controls, and fraud escalation processes can help reduce operational vulnerabilities and protect client trust.

Beyond regulatory requirements, maintaining effective client protection also means strengthening cybersecurity practices and reviewing how sensitive information is managed across advice operations.

Payments Licensing Reforms: Reviewing Technology and Third-Party Providers

Technology continues to reshape advice operations, making third-party platforms and automated payment systems increasingly important to everyday workflows.

The Australian Government is progressing proposed payments licensing reforms to modernise the regulation of payment service providers. The reforms would introduce licensing requirements for providers performing certain payment functions, alongside additional safeguards and regulatory obligations.

While implementation timelines remain subject to legislative progress, financial advice firms that rely on payment technology or automated fee collection should monitor developments affecting their service providers.

While implementation timelines remain subject to legislative progress, advice firms relying on payment technology or automated fee collection should monitor how these developments may affect their service providers.

Reviewing existing technology arrangements and understanding how client payments are processed can help firms identify potential operational risks and dependencies.

For Chris, the value of early preparation goes beyond meeting regulatory requirements. It gives financial advice firms the opportunity to review existing processes, identify potential gaps and make necessary adjustments before changes take effect.

Reviewing technology arrangements and payment processes early, allows firms to better understand potential dependencies and make more informed decisions about their operational readiness.

Privacy Act Reforms: Understanding New Transparency Obligations for AI

Changes introduced under the Privacy and Other Legislation Amendment Act 2024 will introduce new transparency requirements for automated decision-making under the Australian Privacy Principles (APPs).

According to the Office of the Australian Information Commissioner (OAIC), relevant organisations will be required to disclose in their privacy policies when computer programs make, or substantially contribute to, decisions that could significantly affect an individual's rights or interests.

For financial advice firms using artificial intelligence (AI) and automated systems, these changes highlight the importance of understanding how client information is collected, processed and used to support decisions.

Reviewing existing software, automated workflows and third-party platforms can help firms identify where automated decision-making occurs and whether additional privacy disclosures may be required. This may include risk-profiling tools, digital advice platforms and systems that assess client information or contribute to financial decisions.

As Chris highlights, regulatory developments can affect more than just compliance documentation, extending into the everyday operations of a financial advice practice. 

For advice firms, preparing for these changes may involve updating internal documentation, reviewing technology arrangements and ensuring team members understand their responsibilities when handling client information. By assessing these processes early, firms can identify potential gaps, strengthen data privacy practices and maintain appropriate oversight of automated decision-making.

Preparing Advice Operations for 2027

Although these developments address different areas of financial services, they share a common consideration for advice firms: the importance of having reliable processes, appropriate oversight, and the capacity to adapt.

Preparing for regulatory change involves more than monitoring announcements. It means reviewing documentation workflows, strengthening quality assurance, and improving advice workflows to ensure teams can respond effectively as industry requirements evolve.

At Vital Business Partners (VBP), we recognise that having the right operational support can make a meaningful difference in how firms prepare for change.

Chris also highlights the role of dedicated operational support in helping financial advice firms create capacity for continuous improvement.

By combining skilled teams with smarter workflows, we help firms build operational capacity while allowing advisers to focus on delivering quality advice and maintaining strong client relationships.

Looking Ahead to 2027

As the financial advice landscape continues to evolve, early preparation can help firms navigate change with greater confidence.

By staying informed, reviewing operational risks, and strengthening existing processes, advice firms can build a stronger foundation for the year ahead.

Is Your Firm Ready for 2027?

Preparing for regulatory change starts with having the right people, processes and operational support in place.

Discover how VBP can help your firm improve efficiency, strengthen advice operations and create more capacity to focus on your clients.