ASIC Warns Advice Firms That Lead Generators Could Cost Them Their Licenses
By Damian Chmiel
AI summary of the source article
ASIC warned financial advice firms that relying on unlicensed lead generators risks their licenses. A review of 15 licensees revealed middlemen directed 7,639 clients who invested A$678 million, with referrers taking up to 100% of upfront advice fees.
Why it matters
ASIC stated that "firms that enable, ignore or fail to control such conduct risk action that may affect whether they stay licensed," emphasizing that "commercial incentives must not come at the expense of consumers."
Key facts
- ASIC Report 845 found lead generators brought 15 reviewed licensees 7,639 clients who invested A$678 million between January 2025 and June 2026.
- More than half of the reviewed licensees allowed lead generators to perform adviser tasks, including fact-finding, risk profiling, or discussing statement of advice recommendations.
- Referral partners received up to 80% to 100% of upfront advice fees deducted from clients' superannuation retirement savings.
Source excerpt · Finance Magnates
The Australian Securities and Investments Commission (ASIC) warned financial advice firms today (Monday) that using lead generators may put their licenses at risk. A review of 15 license holders found unlicensed or unqualified lead generators taking part in the advice process. Those middlemen brought the 15 firms about 7,639 new clients from January 2025 to June 2026, or about 35% of their total i…