ASIC’s final warning to licensees – using lead generators may put your licence at risk

Alan Kirkland

ASIC’s major review of lead generation activity in the financial advice sector has uncovered examples of involvement of unlicensed or unqualified lead generators in the advice process, exposing oversight failures by licensees.

The review, which focused on a small number of Australian financial services (AFS) licensees that were identified as having links to lead generation activities, found that some allowed lead generators to undertake specialist tasks such as fact-finding, assessment of clients’ risk profiles and discussing advice recommendations.

ASIC also identified that some lead generators were using potentially misleading statements, fear-based claims and non-like-for-like performance comparisons to encourage consumers to review their superannuation or switch investments. This pointed to clear gaps in some licensees’ oversight of what lead generators were saying to clients.

ASIC Commissioner Alan Kirkland said the findings in Report 845 Lead generation advice models: Putting consumers and licensees at risk (REP 845) sends a clear warning to advice licensees that using or allowing lead generation services may put their licenses at risk.

‘ASIC’s work in recent years has exposed how business models involving slick sales tactics to convince people to switch their super can expose Australians to serious financial harm,’ Mr Kirkland said.

‘Consumers should not feel pressured or be misled when making important financial decisions. Far too often, we have seen how harmful lead generation practices can steer people towards investment choices that leave them worse off.

‘ASIC welcomes the Government’s proposed reforms to strengthen protections for Australians and clamp down on harmful lead generation practices but our message to advice licensees is clear: we will continue to take enforcement action under current laws where we find evidence of serious consumer harm.’

The review focused on advice licensees’ oversight and supervision arrangements for models that utilise lead generation. It identified inadequate controls by some licensees, including limited access to lead generator call recordings, heavy reliance on manual supervision, insufficient monitoring of product recommendation patterns and inadequate limits on adviser client volumes.

Mr Kirkland said these oversight and control weaknesses exposed consumers to unacceptable risk of harm.

‘The poor approach to oversight taken by some licensees is unacceptable, particularly considering the scale and volume of business generated from these arrangements,’ Mr Kirkland said.

‘Across the 15 licensees we reviewed, lead generators referred 7,639 new clients to financial advisers from January 2025 to June 2026, representing 35% of all new clients. This resulted in more than $678 million being switched or invested, with approximately 90% coming from superannuation savings. Advice businesses also received $9.8 million in initial fees, with commitments to a further $4.5 million in ongoing fees.

‘Commercial incentives must not come at the expense of consumers. Licensees must identify and prohibit arrangements that may compromise the quality of advice or expose consumers to harm. Licensees must ensure that only authorised advisers provide personal advice, and that those advisers act in the best interests of their clients.’

ASIC will continue to monitor compliance with the law and, where appropriate, take enforcement action against advice licensees and their representatives for failures to act in the best interests of consumers.

Information for consumers

Consumers should be on alert to sales tactics encouraging them to switch superannuation, including unexpected calls after clicking on social media advertisements or completing online forms.

Watch out for the following warning signs:

• unexpected contact
• being pressured to act immediately
• claims that your existing fund is underperforming
• the touting of free superannuation ‘health checks’ and prizes such as gift cards (often via social media advertisements or websites)
• offers to find and consolidate ‘lost super’ for free
• the involvement of unlicensed people in the advice process
• predominant engagement over the phone with limited client contact with a financial adviser
• poor or no product disclosure
• promises of high or unrealistic returns.

Consumers can visit the Moneysmart’s dedicated webpage for more information on how to protect their super from high-risk sales tactics and check Moneysmart’s Financial Advisers Register to confirm that a financial adviser is authorised to provide advice and review their qualifications and employment history. Those wishing to compare the performance of MySuper products or to find their lost superannuation accounts can do so on the ATO’s website.

Background

Lead generation refers to marketing activities designed to create consumer interest in a product or service and connect consumers with financial services businesses. These services are commonly used in superannuation switching models and may involve consumers being contacted after clicking on social media advertisements or completing online forms.

ASIC assessed 15 advice licensees’ supervision and monitoring of lead generation services in personal financial advice practices between 1 January 2025 and 1 June 2026. It builds on ASIC’s work to increase transparency around high-risk superannuation switching models including publishing an initial list of 44 entities in February 2026 (26-029MR) and expanding the list by adding 19 additional entities in June 2026 (26-125MR).

ASIC has taken enforcement action against lead generators and financial advisers involved in harmful advice models. This includes Federal Court proceedings against Imperial Capital Group Australia over alleged misleading representations and its involvement in MWL Financial Services’ alleged advice failings concerning Shield Master Fund (25-276MR), and proceedings against Clark Family over allegations it misled consumers by promoting financial product comparisons while selling their enquiries to the highest-bidding broker (26-221MR). ASIC also banned advisers Andrew Hanley and Shane Monte Silva from providing financial services for five years over flawed superannuation advice models involving third-party marketers (26-216MR).

On 19 August 2026, the Government announced proposed reforms to strengthen consumer protections in superannuation and financial advice, including measures to curb harmful lead generation practices. ASIC will continue to work closely with Treasury on the proposed reforms to support an effective regulatory framework.

Downloads

• Report 845 Lead generation advice models: Putting consumers and licensees at risk (REP 845)

More information

• 26-125MR ASIC expands list of known entities involved in lead generation
• 26-029MR ASIC commences new review of advice licensees that use lead generation services
• Lead generation and how it works (Moneysmart.gov.au)
• Exposing high-pressure cold calling tactics and social media click-bait leading to superannuation switching