The SMSF Association has renewed its support for a ban on harmful lead generation, saying ASIC’s latest report highlights the need for targeted reforms and stronger accountability to protect Australians’ retirement savings.
Responding to ASIC’s Report 845, Lead generation advice models: Putting consumers and licensees at risk, SMSF Association CEO Peter Burgess said the findings of potentially misleading sales tactics, unlicensed involvement in advice and inadequate supervision demanded action.
“Consumers should be able to seek advice about their superannuation without being pressured into a predetermined investment outcome.
“We support a ban on high-risk lead generation that exposes consumers to harm. Reforms must address the conduct and commercial incentives driving that harm, while preserving legitimate professional referrals, education and access to financial advice.
“ASIC’s findings should now guide where stronger safeguards are needed and where existing obligations need to be enforced.”
He said ASIC’s review focused on 15 licensees linked to lead generation and should be understood in that context.
“The behaviours identified among some of these licensees are unacceptable and are not representative of the broader financial advice profession.
“Professional financial advisers play an important role in helping Australians understand their options, assess risk and make decisions suited to their circumstances.
“Access to trusted, affordable advice is itself an important consumer protection.
“Effective reform must protect consumers from harmful sales practices while supporting the advisers who help Australians build and safeguard their retirement savings,” Mr Burgess said.