FAAA welcomes ASIC’s review of advice licensees who use lead generation services that inappropriately or unnecessarily encourage consumers to switch superannuation.

The FAAA welcomes ASIC’s review of advice licensees who use lead generation services that inappropriately or unnecessarily encourage consumers to switch superannuation.

Phil Anderson, general manager, policy, advocacy and standard at the FAAA said, “We are very concerned by the role that lead generators played in the Shield and First Guardian collapses.

“While the use of lead generators does not necessarily imply wrong-doing, the FAAA strongly opposes the use of high-pressure sales tactics to engage potential clients, particularly where it is used to funnel them into particular products by promising high returns on investments, including their super.

“Financial advice must consider the client’s personal circumstances and be provided in the client’s best interest. It should not focus on products.

“Inappropriate lead generation, and financial advice that is provided off the back of it, that is not tailored to the client’s personal circumstances, can place that client at material risk.

“We support the Government in pursing regulatory reform in this area, where it protects consumers and targets the inappropriate use of this practice.”