Government to crack down on super switching schemes
Unlicensed telemarketers that cold call and make unsolicited approaches to consumers to convince them to switch their super will be banned under long-awaited reforms.
Telemarketers who cold call Australians to convince them to switch their superannuation providers will soon need to hold a license, according to upcoming reforms announced by Assistant Treasurer Daniel Mulino. The reforms aim to better protect Australians from operators who exploit their retirement savings. Shield and First Guardian funds collapsed in 2025, causing over $1 billion in losses for 12,000 people.
The reforms follow these collapses, which exposed flaws in the regulation of Australia's $4.5 trillion retirement savings pool. Lead generators, known as people who obtain contact details and sell them to financial advisors, will also need to be licensed. The changes stop short of an outright ban on advertising, protecting advocacy, educational, and employment communications.
The reforms target the initial exposure point to reduce bad actors' access to consumers. Michael Johnson, one of the victims, lost his retirement savings after being contacted by a lead generator after seeing a Facebook ad. He expressed gratitude that the government-regulated lead generators hadn't been there before he and his wife switched their super, saying they wouldn't have invested.
Super Consumers CEO Xavier O Halloran supports the ban but wants social media platforms to take down harmful ads and ensure consumers' details aren't sold to financial advisors without their knowledge.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
