Joint Consumer Submission: Curbing lead generation activity

The only effective solution to the entrenched problem of lead generation is to ban it in superannuation, by banning unlicensed commercial communication and advertising in relation to superannuation, and extending the hawking ban to all financial products and services. It is unviable to add new regulatory obligations, such as licensing and consumer disclosures, to a highly exploitative business model. It is also inadequate to leave ASIC to repair the damage after it is done. We also recommend a ban on lead generation for debt management and life insurance, given the similar significant harms. We share the Government’s commitment to stamping out manipulative business models that have cost people their financial safety net in retirement.