A review has been launched by the Australian Securities and Investments Commission (ASIC) into companies that generate leads for financial advisors, following concerns that vulnerable Australians are being pressured into switching their superannuation funds into high-risk investments. The investigation was prompted by the collapses of managed investment schemes Shield and First Guardian, which collectively put over $1 billion of retirement savings at risk for 12,000 investors.
The concerns center around “lead generators” – businesses that collect personal information from individuals interested in financial advice and then sell those leads to financial advisors. ASIC Commissioner Alan Kirkland stated the review aims to address practices that “inappropriately or unnecessarily” encourage consumers to switch their superannuation. “We’ve seen thousands of cases where consumers have been lured in through a social media ad and a series of phone calls, they’ve often been misled about how their current super fund performs and they’ve been convinced to switch their super from a relatively good fund into a high-risk investment, and many of them have lost their entire retirement savings,” Kirkland said.
Liz, who wished to be identified only by her first name, recounted her experience with a salesman from Clear Sky Financial, a firm licensed under InterPrac. She described being contacted after expressing interest in financial advice and being subjected to persistent, high-pressure sales tactics. “They were really pushy. Like, ‘No, you have to make a decision now’. I was like, ‘No, how? Like, let me have a think about it,’” Liz told ABC News. She became alarmed by the salesman’s requests for extensive personal information and the relentless follow-up calls, ultimately deciding not to proceed with the firm.
Clear Sky Financial’s website claims $540 million in assets under management. InterPrac, the firm’s licensee, is already under investigation by ASIC in relation to the Shield and First Guardian collapses. InterPrac stated it expects its authorized representatives to act ethically and in line with the Corporations Act and confirmed it ceased using lead generation services in December 2025.
ASIC is compiling a public list of known lead generation entities, referral partners, and advice licensees who have acquired leads since July 1, 2024. The regulator cautioned that inclusion on the list does not imply wrongdoing but urged consumers to exercise caution when dealing with businesses utilizing lead generation.
The collapses of First Guardian and Shield have highlighted vulnerabilities within Australia’s $4.3 trillion superannuation system. Liquidators of First Guardian reported recovering only $1.6 million of the $446 million invested, insufficient to cover associated fees. Total superannuation assets reached $4.5 trillion as of September 2025, with $3.2 trillion held in APRA-regulated funds. However, over $1 trillion resides in self-managed superannuation funds, which fall outside of APRA’s direct oversight, leaving ASIC as the primary consumer protection agency.
Kirkland indicated ASIC may pursue legal action against lead generation firms, citing existing action against Imperial Capital Group. He also warned lead generators against misleading consumers, employing high-pressure tactics, or providing financial services without a license, stating that licensed entities engaging such firms also share the risk.
ASIC advises consumers to be wary of unsolicited calls, pressure to act immediately, and claims that their existing fund is underperforming. Super Consumers Australia is advocating for a complete ban on lead generation for superannuation and financial advice, as well as the elimination of loopholes allowing unsolicited “cold calls” offering financial advice. Chief Executive Xavier O’Halloran noted that lead generators often employ convincing sales pitches and that even experienced professionals can be misled.
ASIC’s review is expected to continue throughout the year, with the government also considering broader reforms to address regulatory gaps.