Lead generators pocket 80 to 100 per cent of super advice fees, ASIC finds
Financial salespeople are paid to steer retirees to advisers. They collect massive upfront fees. Meanwhile, $678 million of super gets moved around.
ASIC investigated 15 financial advice firms. They found a scheme that turns retirement savings into a sales target.
Some lead generators are often unqualified salespeople. They run ads offering free super checks and retirement reviews.
When someone clicks and shares contact details, that lead is sold to a financial adviser. The lead generator gets paid between 80 and 100 per cent of the upfront advice fee.
Sometimes this is thousands of dollars. Across these 15 firms, clients paid $9.8 million in upfront fees.
They agreed to $4.5 million more in ongoing annual fees. About 90 per cent of the more than $678 million switched or invested came directly from super savings after these referrals.
The salespeople sometimes frighten people. They claim super isn't performing well.
They warn of sharemarket crashes.
- 80 to 100 per cent
- Lead generator share of fees
- 15
- Firms investigated
- $678 million
- Super switched or invested
- $9.8 million
- Upfront fees paid by clients
Why it mattersMost Australians don't know what happens next. When they ask about super, they enter a sales funnel. It's designed to move their savings into higher-risk investments. These have hidden financial incentives.
AustraliaAustralians nearing retirement are being targeted by financial salespeople paid to steer them away from regular super funds; ASIC says the practice should be banned entirely.
✓ Claims checked against the source. checked 19 h ago
