The Australian Securities and Investments Commission has launched a sweeping review into financial advice licensees following growing concerns over predatory lead generation tactics.
The investigation targets marketing practices that pressure consumers into inappropriately switching their superannuation, often risking significant financial loss.
ASIC’s intervention focuses on "lead generation"—a process where third-party marketers use social media ads, "free super health checks," and promises of finding "lost super" to harvest consumer data.
The leads are then sold to financial advisers who may encourage fund switching regardless of the consumer’s best interests.
To increase transparency, the regulator has published a list of known entities involved in these referral chains since July 2024, promising regular updates as the probe continues.
"Consumers should exercise extreme caution," ASIC warned, specifically highlighting "red flags" such as high-pressure cold calls, claims of fund underperformance without evidence, and the involvement of unlicensed individuals.
The regulator clarified that being named on the list does not necessarily imply a legal contravention but serves as a public warning.
Superannuation trustees and licensees are now on notice to audit their internal data for high-risk switching patterns.
ASIC has signaled its readiness to take enforcement action against both unlicensed lead generators and the licensed firms that engage them.