Regulatory gaps fuelling ‘unlicensed’ aged care advice called out

Yasmine Raso

Senior Journalist, Financial Newswire

11 February 2026

There have been an alarming number of instances in which older Australians have received “conflicted, inconsistent and inaccurate” aged care advice from ‘unlicensed’ providers, raising concerns over regulatory gaps in financial advice causing potentially serious financial harm.

This is the basis of a new report from specialist advice firm Aged Care Steps, The risk of unregulated aged care advice: Protecting older Australians and ensuring quality advice, which found “unlicensed players” such as Services Australia, aged care providers and others had given out incorrect or erroneous advice in relation to aged care funding.

The paper has renewed calls urging the government, regulatory bodies and key advice industry players to standardise the clear distinction between personal advice and information, much like it did so in relation to finfluencers.

Assyat David, Director of Aged Care Steps, said the current aged care advice system lacks “clear guidance and regulatory oversight”, heightening concerns over the quality of advice being given and the potential for elder abuse.

“Decisions relating to aged care funding are among the most significant financial decisions many Australians will make, with long term consequences not just for the individual but also their families,” he said.

“This grey area of unregulated advice poses significant risks to consumers and highlights the urgent need for clearer guidelines and stricter regulations.

“Without proper consumer protections, older Australians are at risk of making inappropriate decisions that could have serious financial and estate planning consequences.”

The report made five recommendations, including:

• Clarify aged care financial advice as Personal Financial Product Advice under the Corporations Act and require providers to be authorised under an Australian Financial Services Licensee (AFSL);
• Enhance regulation and enforcement by strengthening the Australian Securities and Investments Commission’s role in overseeing aged care financial advice;
• Improve identification of licensed advisers by introducing financial planning specialisation categories, including aged care funding advice, on the Financial Advisers Register (FAR);
• Launch a public campaign to educate consumers about value of licensed financial advice and how to find a licensed adviser; and
• Explore ways to improve the affordability and accessibility of aged care advice, such as through subsidises or new service models.

“Aged care advice should only be provided by financial planners that have the necessary expertise and are authorised under an AFSL and, therefore, comply with relevant laws, regulations, and ethical standards,” Louise Biti, Director of Aged Care Steps, said.

“This approach would strengthen consumer protections due to the requirement for authorised advisers to act in their client’s best interests, meet minimum education and competency standards, and carry professional indemnity insurance to ensure compensation in cases of professional misconduct and participate in an external complaints resolution body. Unlicensed providers do not offer these protections.”