ASIC Warns Advice Licensees Lead Generators Could Put Their Licences at Risk

The Australian Securities and Investments Commission (ASIC) has warned financial advice licensees that using lead-generation services could put their licences at risk, after finding some providers were involved in advice activities without appropriate qualifications or authorisation. The review found examples of lead generators gathering client information, assessing risk profiles and discussing recommendations—tasks ASIC said should be handled by authorised advisers where personal advice is involved. ASIC examined 15 advice licensees’ supervision of lead-generation services. From January 2025 to June 2026, lead generators referred 7,639 new clients to advisers, accounting for 35% of all new clients across the reviewed businesses. More than $678 million was switched or invested, about 90% of it from superannuation savings. Advice businesses received $9.8 million in initial fees and commitments for a further $4.5 million in ongoing fees. The regulator identified weak controls at some licensees, including limited access to call recordings, reliance on manual supervision, inadequate monitoring of product recommendations and insufficient limits on adviser client volumes. It also found lead generators using potentially misleading claims, fear-based sales tactics and comparisons that were not like-for-like to prompt consumers to review their super or switch investments. ASIC Commissioner Alan Kirkland said the findings, detailed in Report 845, were a warning that such arrangements could expose consumers to harm. ASIC said it would continue monitoring compliance and take enforcement action under current laws where appropriate; the warning does not itself announce a new licensing rule. ASIC urged consumers to be wary of unexpected contact, pressure to act quickly, claims that an existing super fund is underperforming, and offers of free “health checks” or help finding lost super. Consumers can use ASIC’s Moneysmart resources and Financial Advisers Register to check advice providers, and the Australian Taxation Office website to compare MySuper products or locate lost super accounts. The review follows ASIC enforcement action involving lead generators and advisers, while the government has proposed reforms aimed at strengthening protections and curbing harmful lead-generation practices.