Australians push for end to risky super lead generation
The Super Members Council (SMC) has renewed its call for Parliament to ban lead generation, arguing ASIC’s review showed the practice could put Australians’ retirement savings at risk even when licensed advice businesses were involved. The council said ASIC’s report identified referral arrangements that, in some cases, were calculated at 80 per cent to 100 per cent of a consumer’s upfront advice fee. It said this meant money taken from retirement savings could help fund sales funnels directing consumers towards investment products. ASIC found that some lead generators had conducted fact-finding, assessed clients’ risk profiles and discussed advice recommendations.
The regulator also identified potentially misleading statements, fear-based claims and non-like-for-like performance comparisons used to encourage people to review or switch their super. Between January 2025 and June 2026, the 15 licensees reviewed processed 7,639 new clients through lead generation channels—accounting for 35 per cent of all new clients. More than $678 million was switched or invested, with approximately 90 per cent coming from superannuation savings. These findings align with broader damage observed in past financial collapses. The failures of Shield Financial Services and First Guardian Australia alone cost 12,000 Australians around $1.2 billion in the scandals, with lead generation playing a role in both cases.
The SMC argues these failures demonstrate that even licensed firms cannot fully eliminate the risks posed by lead generation. SMC chief executive Misha Schubert said: “Even after the Shield and First Guardian collapses, ASIC’s report methodically catalogues the types of shocking consumer harm being caused by lead generators working for some licensed entities. This shows why an outright ban on lead generation is the only credible policy answer to protect Australians’ life savings, Parliament should outlaw these dangerous practices and sales funnels.” Industry research from Cbus Super revealed that nearly one in three of its members could recall being targeted by lead generation tactics in the past year, with younger tradies a particular target.
Chief strategy officer Bernie Dean said the report showed how lead generators encouraged people to switch super. “Our members tell us they are regularly being targeted by these lead generators, and their persistent high-pressure sales tactics can be hard to resist,” he said. “As long as the financial incentive remains in place, as long as these people can make money out of switching your super, they will continue to do whatever they can to make that happen. Blue-collar Australian workers are among the ones paying the price.”
