Regulatory update
ASIC’s final warning on lead generators: what advice licensees need to do now
ASIC has warned financial advice licensees that using lead generators may put their licence at risk. Here’s what its review found, and the steps licensees should take now.
On 9 November 2026, ASIC released Report 845, Lead generation advice models: Putting consumers and licensees at risk. It reviewed 15 Australian financial services (AFS) licensees with links to lead generation, covering 1 January 2025 to 1 June 2026.
ASIC has called it a final warning. In its media release, it says using or allowing lead generation services may put an advice licence at risk. Commissioner Alan Kirkland said “commercial incentives must not come at the expense of consumers”.
Key takeaways
- Across the 15 licensees, lead generators referred 7,639 new clients, or 35% of all new clients.
- More than $678 million was switched or invested, about 90% of it from superannuation.
- Some licensees let lead generators fact-find, risk-profile clients and discuss advice recommendations.
- ASIC says using or allowing lead generation may put your licence at risk, and it will keep taking enforcement action.
- The Government has proposed reforms to curb harmful lead generation, and ASIC will work with Treasury on them.
On this page
What ASIC found
Lead generators are businesses that find and refer prospective clients, often through online ads, cold calls, or offers of free super “health checks”. ASIC’s review looked at how much business they were bringing to advice licensees, and what those clients went on to do.
| Over January 2025 to June 2026 | Figure |
|---|---|
| Licensees reviewed | 15 |
| New clients referred by lead generators | 7,639 (35% of all new clients) |
| Amount switched or invested | More than $678 million |
| Share from superannuation | About 90% |
| Initial advice fees | $9.8 million |
| Ongoing fees committed | A further $4.5 million |
Mr Kirkland described the oversight by some licensees as unacceptable, given how much business came from these arrangements.
Where licensees fell short
Lead generators doing the adviser’s job
Some licensees let lead generators carry out fact-finding, assess clients’ risk profiles and discuss advice recommendations. These are core parts of the advice process. ASIC’s position is clear: only authorised advisers may give personal advice.
Misleading marketing
ASIC found some lead generators used potentially misleading statements, fear-based claims and comparisons that weren’t like for like, to push people to review their super or switch investments.
Weak controls
ASIC also found weaknesses in the licensees’ own controls, including:
- limited access to the lead generator’s call recordings
- heavy reliance on manual supervision
- not enough monitoring of patterns in product recommendations
- no proper limits on how many clients each adviser takes on.
Why this is more than a warning
This review sits against a run of enforcement action involving lead generation and super switching. ASIC began the review in February 2026 and published a list of 44 entities involved in lead generation, then added 19 more in June. It has also:
- sued Imperial Capital Group Australia over alleged misleading representations, and taken action against MWL Financial Services, a former director and Imperial over alleged advice failings concerning the Shield Master Fund
- sued Clark Family over allegedly misleading comparison claims, alleging it sold consumer enquiries to the highest-bidding broker
- banned two advisers for five years over flawed super advice models involving third-party marketers. The Administrative Review Tribunal affirmed the bans.
The legal exposure
ASIC’s release doesn’t cite particular provisions. In our view, the risks for licensees sit mainly in their existing obligations under the Corporations Act 2001 (Cth). These include the general obligations in section 912A to provide services efficiently, honestly and fairly, and to take reasonable steps to ensure representatives comply with financial services laws. They also include the best interests duty for advisers, the requirement that personal advice is only given by authorised representatives, and the hawking prohibition on unsolicited offers of financial products. Weaknesses like those in the report can amount to breaches of several of these at once.
What licensees should do now
ASIC expects licensees to identify and prohibit arrangements that could compromise advice quality or harm consumers. If you use, or have used, lead generators, we recommend you:
- map every referral source, including introducers, marketers and comparison sites, and check them against ASIC’s lists
- draw a hard line around advice. Lead generators shouldn’t fact-find, risk-profile or discuss recommendations
- get full access to call recordings, scripts and marketing, and review them for misleading or fear-based claims
- monitor outcomes, including switching rates, product concentration and the share of new clients from each source
- set limits on adviser client volumes, and supervise new-client advice more closely
- consider your breach reporting obligations. Significant breaches, and likely significant breaches, must generally be reported to ASIC within 30 days of becoming aware of them.
Questions for your board
- How many of our new clients come through lead generators, and which ones?
- What exactly does each lead generator say and do before a client reaches an adviser?
- Can we hear every call, and do we?
- Are our product recommendations and switching rates out of line with the rest of our advice book?
- If ASIC asked tomorrow, could we show we took reasonable steps to supervise these arrangements?
Our licensing team can review your arrangements, and our work on design and distribution obligations and advertising law covers the related product and marketing risks.
What comes next
On 19 August 2026, the Government announced proposed reforms to strengthen protections in superannuation and financial advice, including curbing harmful lead generation. ASIC says it will work with Treasury on them, and will keep enforcing the current law where it sees serious consumer harm.
Our view, and this is a prediction rather than certainty, is that further action against licensees connected with the review is likely. Licensees who act now, and can show it, will be in a far better position if ASIC comes asking.
For consumers, ASIC’s Moneysmart guidance lists the warning signs, such as unexpected contact, pressure to act straight away, claims that your fund is underperforming, and free super health checks or prizes.
Frequently asked questions
What is a lead generator?
A business that finds and refers prospective clients to financial advisers, often through online ads, cold calls or offers like free super health checks.
Is it illegal for licensees to use lead generators?
Not in itself. The risk lies in how they’re used. Licensees remain responsible for the advice their representatives give and for supervising anyone involved in the advice process.
What did ASIC’s review find?
Across 15 licensees, lead generators referred 7,639 new clients, or 35% of the total, and more than $678 million was switched or invested, mostly from super. Some licensees let lead generators carry out parts of the advice process.
What should a licensee do if it finds problems?
Stop the conduct, assess the harm to clients, remediate where needed and consider whether it has a reportable situation. Significant breaches must generally be reported to ASIC within 30 days.
Using lead generators in your advice business?
Talk to our banking and financial services team
Banking & Financial Services Law
Our team can review your referral arrangements and oversight framework, assess your breach reporting obligations and help you respond to ASIC.
This article is general information only and is not legal advice. Please contact us for advice about your circumstances.
Related updates
Table of Contents
Posted in Financial Services Regulation, Licensing