The corporate regulator in Australia has launched a fresh review into the practice of using lead generators to lure in the large piles of money in workers’ superannuation accounts, with more than 40 groups called out. The often aggressive marketing practice is what drove thousands of Aussies to invest around $1.2 billion of their retirement savings into the collapsed Shield and First Guardian funds.

Lead generation is the process of identifying someone as a potential sales target. Lead generators may offer a free ‘super health check’ or offer to find your lost super, which can be sales tactics designed to pressure you to switch superannuation accounts.

Lead generators are often paid “marketing fees” by licensed financial advisers for generating leads. This is what happened in the cases of the Shield and First Guardian.

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The Australian Securities and Investments Commission (ASIC) has released a list of 44 known entities involved in lead generation as part of a new review of financial advice licensees using lead generation services.

“ASIC is concerned that certain practices associated with some lead generation services in financial advice and superannuation may expose consumers to a risk of significant losses,” the regulator said.

“The naming of the entities in this list should not be construed as an indication by ASIC that a contravention of the law has occurred, nor should it be considered a reflection upon any person or entity.”

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The list includes 21 lead generators themselves, many of which have websites that have search terms people would use if they wanted to switch super, like www.checkmysuper.com and www.mysupercheckup.com.au.

It also includes 23 advice licensees or corporate representatives who have acquired leads since July 1, 2024.

Three advice firms on the list, including Clear Sky Financial, were authorised representatives of InterPrac Financial Planning, which was the licensee at the centre of the Shield and First Guardian scandals.

The list isn’t an exhaustive one, with ASIC planning to update the list throughout the course of its review, which will happen over the course of the year.

Super Consumers Australia is calling for a ban on lead generation for super and financial advice, along with closing the loophole that allows cold calling offering financial advice.

The group said predatory super switching schemes had been fuelled by lead generators who had been using social media to collect people’s contact details and sell them on to third parties.

“These schemes are highly effective, they prey on people who are just looking to do the right thing and get on top of their super,” Super Consumer Australia CEO Xavier O’Halloran said.

“They often start by simply offering a super health check, but can end in people losing their life savings in high fees and dodgy investments.”

O’Halloran said the cost of poor consumer protections was falling on everyone, through direct losses, compensation scheme funding and increased age pension costs.

ASIC is urging consumers to be cautious if someone calls them about their super.

You may get a call after clicking on an ad on social media, filling out a form on a super comparison website, or out of the blue. If you are feeling pressured or unsure, just hang up.

Red flags to watch out for include:

• Being pressured to act immediately

• Claims that your existing fund is underperforming

• The touting of free superannuation ‘health checks’ and prizes

• Offers to find and consolidate ‘lost super’ for free

• The involvement of unlicensed people in the advice process

• Predominant engagement over the phone with limited client contact with a financial adviser

• Poor or no product disclosure

• Promises of high or unrealistic returns

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MEDINA, Ohio — In an effort to ensure the city has funds available for capital improvements, the city’s finance committee has agreed to amend the allocation of income tax dollars.

“After spending time talking about sidewalk improvements, I think it makes sense that we need to have money in our account for capital improvements,” Council President John Coyne said.

Coyne said that the city’s current income tax collection is around $21 million and 40 percent of that collection, or roughly $8.4 million goes to the police department. Coyne recommended changing the allocation to the police department to 38 percent and reallocating an additional 1 percent to the general fund and the other 1 percent to general purpose capital expenses.

“The police department would still get an ample amount for their budget, and they do have ample saved up in carry forward funds,” he said.

Coyne said he wants to make sure all departments are properly funded but added that with income tax revenue increasing over the years, he thinks it makes sense to put some money aside for capital improvement projects.

“We need to take a look at this every year and make sure we plan correctly going forward so we don’t reach financial issues in the future,” he said.

Mayor Jim Shields said he has talked to Police Chief Ed Kinney, and he said they understand the reasoning behind the reallocation.

“We used to have a list of all the capital improvement projects we wanted to focus on and there are other things in the city I want to start getting in front of you,” Shields told council.

Coyne said he thought it makes sense to spend the next couple of months to schedule committee of the whole meetings so council can discuss potential capital improvement projects that are needed in the city.