The Australian Securities and Investments Commission (ASIC) has added another 19 organisations to its list of entities involved in lead generation activities it considers to be encouraging consumers to switch their superannuation fund unnecessarily , bringing the total number on the list to 63.
ASIC published its initial list in February when it committed to updating it to promote transparency for consumers and investors.
The list includes 13 known entities involved in lead generation and those that acted as referral partners, and six advice licensees or corporate authorised representatives that have acquired leads since 1 July 2024.
ASIC stressed being included on the list should not be construed as an indication by the regulator a contravention of the law had occurred, nor a reflection upon any person or entity.
“However, consumers should continue to exercise additional caution when engaging with any business that uses lead generation and exhibits the features listed below, including by hanging up on unsolicited calls when feeling pressured into making a decision,” ASIC recommended.
The corporate watchdog identified several characteristics of lead generators of which consumers should be wary, including pressure to act immediately, claims your existing superannuation fund is underperforming, poor or no product disclosure and only engaging over the phone with limited contact with a financial adviser.
ASIC also suggested consumers be cautious of unexpected calls about their super, something that can happen after clicking on an advertisement on social media, filling out a form on a super comparison or totally out of the blue. It issued a warning about free ‘super health checks’ or websites or organisations that proffer to find lost superannuation as well.
“These can be sales tactics designed to pressure consumers into switching superannuation – even when a super fund is performing well. If you are feeling pressured or unsure, you should just hang up,” it advised.
The entire list of organisations can be found on the regulator’s Moneysmart website.
