Lead Generation in Financial Advice: What You Should Know

Lead generation is the process of identifying potential customers and connecting them with businesses that sell products or services. In financial services, this often involves collecting personal details through online advertisements, comparison websites, quizzes or free offers.

If you have clicked on an advertisement offering a free investment comparison, a super health check, or help finding lost super, your details may have been added to a lead list. That information can then be sold or referred to financial advisers or firms.

While lead generation is a common marketing practice, it can expose consumers to pressure based sales tactics, particularly in superannuation and investment advice.

Common Sales Tactics to Watch For

ASIC has identified several risk indicators linked to some lead generation models in financial advice:

• Pressure to act quickly
• Claims your current super fund is underperforming
• Free super health checks promoted via social media
• Offers to find and consolidate lost super
• Limited direct contact with a qualified financial adviser
• Involvement of unlicensed individuals
• Poor or unclear product disclosure
• Promises of high or unrealistic returns

These tactics can encourage unnecessary switching of super funds, even where existing arrangements are appropriate.

ASIC Review and Published Entities

ASIC has commenced a review of advice licensees using lead generation services, focusing on practices that may inappropriately encourage superannuation switching.

As part of this review, ASIC has published a list of known entities involved in lead generation and advice firms that have acquired leads since 1 July 2024. Inclusion on this list does not mean a breach of law has occurred. However, consumers are encouraged to exercise additional caution when dealing with businesses that rely on lead generation and display high risk features.

Protecting Yourself

Before making changes to your superannuation or investments:

• Verify the adviser’s licence on ASIC’s Financial Advisers Register
• Ask who owns and controls the advice business
• Request written documentation and a Statement of Advice
• Avoid making decisions under pressure
• Be cautious of unsolicited contact

Superannuation is often one of your largest long term assets. Decisions to switch funds or establish structures such as an SMSF should be based on clear, documented reasoning aligned with your personal objectives and risk tolerance, not marketing incentives.

Taking time to verify claims and understand the advice process can help reduce the risk of unnecessary losses.