Australian Securities and Investments Commission warns consumers about high-pressure superannuation switch pitches into risky investments

The Australian Securities and Investments Commission (ASIC) issued a consumer alert warning Australians to be on red alert for pushy sales tactics, clickbait advertising and promises of unrealistic returns designed to pressure people into quickly switching superannuation into complex and risky schemes. ASIC cautioned that these approaches can appear legitimate, including offers to locate “lost super” for free and referrals to financial advisers during calls, while underlying products and risks may not be clearly explained. Key red flags highlighted by ASIC include cold calls, free super “health checks” and prizes promoted via social media or websites, offers to find and consolidate lost super for free, unlicensed involvement in the advice process, predominantly phone-based engagement with limited contact with a financial adviser, poor or no product disclosure, and high-pressure demands for quick decisions. Consumers were urged to ask about any salesperson’s connections to particular funds where commissions may apply, seek advice independent of the sales call, and end the call if they feel pressured. ASIC also launched a consumer awareness campaign with advertising aimed at those targeted by “pushy comparison” offerings, building on a 2024 cold-calling campaign, against a backdrop of Australian superannuation assets exceeding AUD 4 trillion and more than 600,000 self-managed super funds.