Lead generation and financial advice hawking practices cheat Australians of their hard-earned super
Super Consumers Australia is calling for urgent action to shut down predatory superannuation selling practices that are draining Australians’ retirement savings and leaving thousands facing financial ruin, including victims of the collapsed First Guardian and Shield Master Funds.
In its submission to the Australian Competition and Consumer Commission (ACCC) unsolicited selling and lead generation review, the national consumer group has laid bare the devastating impact of ‘super switching’ schemes that lure people into high‑risk, high‑fee investments through cold calls or social media ‘clickbait’ ads.
“Lead generators ruin lives. They exploit people’s fears about their retirement to push them into dodgy investments with the promise of high returns,” said Xavier O’Halloran, CEO of Super Consumers Australia.
“People are being tricked into switching their super into dangerous investments, with some losing their entire life savings. At a time when their balances should be supporting a secure retirement, they’re left with nothing.”
The submission details how Australians are charged tens of thousands of dollars in upfront and ongoing fees only to get locked into high risk investments that may collapse – along with their hopes of a secure retirement.
Super Consumers Australia is urging the Federal Government to:
- Urgently introduce an economy-wide prohibition on unfair trading practices, including for financial services.
- Ban the unsolicited sale or ‘hawking’ of financial advice, as it has already done for financial products.
- Prohibit lead generators from targeting Australians about super or other financial products and services.
“There are systemic harms here that no amount of consumer education can prevent,” Mr O’Halloran said. “We need a clean ban on these practices, with strong penalties for those who breach the rules.”