Imagine receiving a call that could jeopardize your retirement savings. This is the story of Liz, who was approached by a salesperson suggesting she move her hard-earned money from a regulated fund into a less-regulated scheme. It's a tale that highlights the importance of financial vigilance.
Liz, wishing to remain anonymous, shared her experience with ABC News. She explained how she initially sought financial advice but soon found herself in a situation that raised concerns. The salesperson, from Clear Sky Financial, started by asking questions about her superannuation, offering what seemed like free advice. However, as the conversation progressed, Liz's instincts kicked in, and she began to worry about the personal information she was sharing.
"It sounded okay at first, but when they started asking for detailed information, I became cautious. I thought, 'Am I about to be scammed?'" Liz recalled.
Upon researching Clear Sky Financial, Liz discovered their head office was located in Mermaid Beach, Gold Coast. Their website boasted $540 million in assets under management, but it was their connection to InterPrac that raised eyebrows. InterPrac, the licensee under investigation by the Australian Securities and Investments Commission (ASIC), was linked to the Shield and First Guardian collapses, putting 12,000 Australians at risk of losing over $1 billion in retirement savings.
InterPrac, in a statement to ABC News, emphasized their expectation for authorized representatives to act ethically and in line with the Corporations Act. They also confirmed that they have ceased using lead generation services.
Clear Sky, a financial planning firm licensed with InterPrac, previously used lead generating firms to build their client base. However, in December 2025, InterPrac issued a notice prohibiting their financial advisers from using lead generation firms for marketing purposes.
ASIC, as part of its review, is publishing a list of known entities involved in lead generation, referral partners, and advice licensees who have acquired leads since July 1, 2024. This move is aimed at addressing the significant harm that can arise from lead generation in relation to superannuation switching.
"We've seen thousands of cases where consumers have been lured in through social media ads and a series of phone calls. They've been misled about their current super fund's performance and convinced to switch to high-risk investments, often losing their entire retirement savings," said ASIC commissioner Alan Kirkland.
ASIC's list of lead generators will be updated throughout the review process. While the naming of entities on this list does not indicate a legal contravention, it serves as a cautionary measure for consumers.
"Consumers should exercise additional caution when engaging with businesses that use lead generation," ASIC advised.
Lead generators are often paid marketing fees by licensed financial advisers for generating leads. This was the case with the First Guardian and Shield managed investment schemes, which later collapsed. Consumers, after being contacted by sales representatives from lead generation companies, moved significant amounts of their super savings from APRA-regulated funds to these schemes.
Investors in First Guardian, many of whom switched from highly regulated super funds, face little chance of recovery, with liquidators stating that only $1.6 million of $446 million has been recovered, not enough to cover their fees.
Liz's experience highlights the pushy tactics employed by these lead generators. Despite her initial hesitation, she was persistently called back by the same salesperson, who even boasted about a team member's appearance on a popular TV show.
"They were really pushy, insisting I make a decision right then and there. I knew something wasn't right," Liz said.
ASIC aims to stop these 'inappropriate' practices and ensure that financial advice provided is in the best interests of the client, putting their interests ahead of the advisor or licensee.
"We will be investigating how these firms comply with their legal obligations," Mr. Kirkland stated.
ASIC has already taken legal action against one lead generation firm, Imperial Capital Group, and is prepared to use all available enforcement tools if serious harm is identified.
Lead generators who mislead consumers, utilize high-pressure tactics, or provide financial services without a license risk contravening the law. Licensed entities that engage such services share this risk.
"ASIC is putting participants on notice and will consider enforcement action where contraventions of the law are detected," the statement read.
Consumers are urged to look out for 'red flags' such as feeling pressured to act immediately and claims of underperformance by their existing super fund. Often, these calls are a result of clicking on social media ads or filling out forms on super comparison websites. Lead generators may offer free 'super health checks' or help find lost super.
ASIC warns consumers to be cautious of unlicensed people providing advice, limited contact with licensed financial advisers, poor product disclosure, and promises of high or unrealistic returns.
"If you feel under pressure or have doubts, just hang up," Mr. Kirkland advised.
Super Consumers Australia is calling for a ban on lead generation for superannuation and financial advice, as well as closing the loophole that allows 'cold calling' offering financial advice. Chief executive Xavier O'Halloran believes lead generators are behind the increase in super switching schemes, preying on people's good intentions to manage their super.
"These schemes are highly effective, but the cost of poor consumer protections is falling on everyone," Mr. O'Halloran said.
ASIC's review, which will take place over the year, aims to address regulatory gaps that have allowed lead generation to thrive in relation to superannuation switching. Assistant Treasurer Daniel Mulino has also announced a crackdown on managed investment schemes.
"We welcome the government's efforts to address these regulatory gaps," Mr. Kirkland said.
The story of Liz and her encounter with a lead generator serves as a reminder of the importance of financial vigilance and the need for robust consumer protections in the superannuation industry.
