Australia moves to license super-switch telemarketers after massive fund collapses

During a briefing at the National Press Club, Assistant Treasurer Daniel Mulino presented a set of reforms designed to protect Australians from predatory superannuation switching schemes. Unlicensed telemarketers, often referred to as lead generators, will now be required to hold a licence before running ads or making cold calls that persuade consumers to move their retirement savings, although limited exemptions will remain for advocacy, educational and employment communications.

The initiative follows the collapse of the Shield and First Guardian funds, events that cost 12,000 people more than $1 billion and exposed weaknesses in the regulation of the $4.5 trillion super pool. Mulino also pledged to strengthen the anti-hawking regime, tighten consent requirements and increase penalties for breaches. In parallel, the Compensation Scheme of Last Resort will be broadened to include additional sectors, the “but-for” test will be removed, and the $150,000 compensation cap will stay in place. Consumer groups welcomed the licensing ban but urged social-media platforms to remove deceptive ads, while industry bodies expressed mixed reactions to the funding changes for the CSLR.