The Treasury has released a consultation paper proposing reforms to curb harmful lead generation practices, particularly those associated with superannuation switching. While the proposals are not yet law, they signal a clear policy direction: lead generation is no longer viewed as a neutral marketing activity, but as an early point of potential consumer harm requiring close regulatory attention.
The consultation follows recent fund failures, in which high-pressure lead-generation and referral models are alleged to have played a key role in directing consumers into unsuitable arrangements.
Why Treasury is focused on lead generation
Treasury’s concern is that lead generation often operates at the edge of the regulatory perimeter, despite having a significant influence on consumer behaviour before advice is formally provided. Common models involve consumers responding to online advertisements or “super health checks”, having their personal information collected and sold, being cold-called or warm-transferred, and then receiving advice to switch superannuation or establish an SMSF.
When issues arise within this chain, existing protections frequently apply too late, after decisions with long-term retirement consequences have already been made.
Key reforms areas under consultation
The paper outlines four broad reform areas. These include increasing accountability for lead generators or the licensees that use them, strengthening anti-hawking protections around consent and unsolicited contact, addressing remuneration structures that may prioritise lead conversion over suitability, and allowing regulators to intervene earlier at the advertising stage.
A central theme across all options is accountability, either by bringing certain lead-generation activities within the licensing framework or by placing clearer responsibility on licensees for sourcing clients.
What this means for advisers and licensees
Even at the consultation stage, the message is clear. The use of lead generation arrangements is likely to attract heightened scrutiny and stronger expectations around governance, due diligence and oversight.
If reforms proceed, advisers and licensees can expect greater focus on how clients enter the advice process, stronger evidence requirements around consent and client pathways, and closer examination of superannuation switching models, alongside the broader Delivering Better Financial Outcomes reforms.
Treasury’s consultation makes it clear that lead generation and referral models are moving into sharper regulatory focus, particularly where superannuation switching, third-party providers and consent pathways are involved.
Advisers and licensees that rely on lead generators, warm transfers or referral arrangements should take proactive steps now to ensure these practices are appropriately governed, documented and defensible at the licensee level.
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Reference
Treasury – Curbing lead generation activity: Consultation paper (April 2026)
