The Australian Department of the Treasury has published a consultation paper seeking feedback on options to curb high-pressure sales practices linked to cold calling and lead generation, particularly in relation to superannuation switching but also extending to other financial products. The consultation forms part of the Government’s consideration of policy responses following the collapses of the Shield Master Fund and First Guardian Master Funds, which are before the Federal Court and subject to ongoing Australian Securities and Investments Commission investigations. The paper sets out four reform areas: increasing accountability for lead generators, strengthening the hawking prohibition, targeting remuneration structures that may incentivise poor conduct, and enabling earlier intervention on advertising. Options include bringing prescribed lead generation activities into the Australian financial services licensing framework, banning unlicensed communications to consumers about superannuation for commercial benefit, imposing a new “reasonable steps” obligation on licensees to ensure leads and referrals are sourced lawfully, and extending design and distribution obligations to certain lead generation activities. Further proposals would tighten consent requirements for real-time contact and limit or remove the personal advice exemption that can “cleanse” unsolicited contact, broaden conflicted remuneration restrictions to capture lead generator arrangements and client-flow benefits, and require superannuation advertisements to display Australian financial services licence numbers alongside an expansion of ASIC stop order powers to take down a broader range of advertisements. Submissions are invited by 22 May 2026. Treasury notes the proposals have not received Government approval and are not law, and that consultation feedback and outcomes of enforcement and litigation related to Shield and First Guardian will inform further decisions.

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