Australian Securities & Investments Commission launches review of advice licensees using lead generation services and publishes list of known entities

The Australian Securities & Investments Commission has commenced a review of financial advice licensees that use lead generation services, focusing on practices that inappropriately or unnecessarily encourage consumers to switch superannuation. The work aims to identify advice businesses using these services, understand how the arrangements operate, and take disruptive or enforcement action where appropriate. ASIC flagged concerns that lead generation practices in financial advice and superannuation can expose consumers to a risk of significant losses, including where marketing and referral activity leads to high-pressure sales conduct or unlicensed involvement in the advice process. As part of the review, it has published a list of known entities involved in lead generation, referral partners, and advice licensees or corporate authorised representatives that have acquired leads since 1 July 2024, noting that inclusion is not evidence of a legal breach and the list is not exhaustive. The list will be updated throughout the review, and ASIC has put market participants on notice that it will consider enforcement action where it detects evidence of contraventions, including misleading conduct, high-pressure tactics, or providing financial services without a licence.