The corporate regulator in Australia has launched a fresh review into the practice of using lead generators to lure in the large piles of money in workers’ superannuation accounts, with more than 40 groups called out. The often aggressive marketing practice is what drove thousands of Aussies to invest around $1.2 billion of their retirement savings into the collapsed Shield and First Guardian funds.
Lead generation is the process of identifying someone as a potential sales target. Lead generators may offer a free ‘super health check’ or offer to find your lost super, which can be sales tactics designed to pressure you to switch superannuation accounts.
Lead generators are often paid “marketing fees” by licensed financial advisers for generating leads. This is what happened in the cases of the Shield and First Guardian.
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The Australian Securities and Investments Commission (ASIC) has released a list of 44 known entities involved in lead generation as part of a new review of financial advice licensees using lead generation services.
“ASIC is concerned that certain practices associated with some lead generation services in financial advice and superannuation may expose consumers to a risk of significant losses,” the regulator said.
“The naming of the entities in this list should not be construed as an indication by ASIC that a contravention of the law has occurred, nor should it be considered a reflection upon any person or entity.”
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The list includes 21 lead generators themselves, many of which have websites that have search terms people would use if they wanted to switch super, like www.checkmysuper.com and www.mysupercheckup.com.au.
It also includes 23 advice licensees or corporate representatives who have acquired leads since July 1, 2024.
Three advice firms on the list, including Clear Sky Financial, were authorised representatives of InterPrac Financial Planning, which was the licensee at the centre of the Shield and First Guardian scandals.
The list isn’t an exhaustive one, with ASIC planning to update the list throughout the course of its review, which will happen over the course of the year.
Super Consumers Australia is calling for a ban on lead generation for super and financial advice, along with closing the loophole that allows cold calling offering financial advice.