ASIC expands list of super lead generation entities

ASIC has named 19 additional entities involved in superannuation lead generation activities as part of an ongoing review into business models that may encourage consumers to switch super funds unnecessarily or inappropriately.

The regulator updated a list first published in February, which identified 44 entities linked to lead generation, referral arrangements and advice businesses that acquire leads. The latest update brings the total number of names entities to 63.

ASIC stressed that inclusion on the list should not be interpreted as evidence of wrongdoing or a breach of law. However, it said consumers should exercise caution when dealing with businesses that use lead generation practices and exhibit high-risk characteristics.

"ASIC is putting participants on notice and will consider taking enforcement action where we detect evidence of contraventions of the law," the regulator said.

The review forms part of ASIC's broader efforts to address high-risk superannuation switching conduct, particularly where consumers are pressured into changing funds through unsolicited calls, social media advertisements or offers of free superannuation "health checks".

ASIC warned lead generators which mislead consumers, employ high pressure sales tactics or provide financial services without a licence risk breaching the law. Licensed financial advisers and businesses that engage such operators may also face regulatory scrutiny.

The regulator encouraged consumers to be wary of claims that their current fund is underperforming, promises of high returns, offers to locate lost super for free and situations where unlicensed individuals appear to be involved in the advice process.

The newly names entities include lead generation businesses such as Advisorlink, Australian Superannuation Resources, Data4u and Grow Your Super Australia.

This is alongside advice firms and corporate authorised representatives that have acquired leads, including Lunaris Wealth, Solara Wealth and Wise Investments Direct.

ASIC said superannuation trustees should review the warning signs identified in its report against their own data to help detect potentially harmful switching behaviour.

The regulator is continuing its review of advice licensees that use lead generation business models and intends to publish further findings later this year.