Mulino to Crack Down on Super Lead Generation

Australia’s Assistant Treasurer and Minister for Financial Services Daniel Mulino is set to announce a package of reforms aimed at strengthening consumer protections and bolstering the resilience of the financial system when he addresses the National Press Club today (19 August).

Targeting harmful lead generation

The centrepiece of the package is anticipated to be a crackdown on harmful lead generation practices that the government says often begin through social media, online advertising or cold calls before ultimately leading to Australians losing their superannuation savings.

Mulino is also expected to strengthen the anti-hawking regime by enhancing consent requirements before consumers can be contacted, limiting the existing financial advice exemption to existing client relationships, and introducing civil penalties for breaches.

The reforms are set to require financial services licensees to take reasonable steps to ensure lead generation activities comply with legal and regulatory obligations, including undertaking due diligence, maintaining records and exercising ongoing oversight of lead generation arrangements.

Minister Mulino is expected to say the reforms are aimed at intervening earlier in the consumer harm cycle.

“These reforms are designed to disrupt some of the most damaging business models operating in the system today. They target the point at which consumers are first exposed to harm and reduce the ability of bad actors to gain access to consumers in the first place.”

The minister is also expected to say the package will strengthen protections across the financial system.

“We will make the financial system safer by strengthening protections across the superannuation, advice and investment ecosystem.”

Industry participants will also be watching Mulino’s address for any broader policy announcements after the Financial Advice Association Australia (FAAA) said it was hoping the minister’s National Press Club address would include reforms to stop aggressive lead generation targeting Australians’ superannuation, alongside changes to the Compensation Scheme of Last Resort (CSLR) and potentially broader financial advice reforms.

Those comments followed AustralianSuper’s recent announcement that it would expand its advice offering through a new entity, AustralianSuper Advice, including the rollout of a personalised digital advice platform and the gradual expansion of its in-house intrafund advice capability.

Responding to those changes, FAAA chief executive Sarah Abood welcomed AustralianSuper’s investment in member advice, saying it reflected the challenge of delivering financial advice at scale while noting questions remained about the future regulatory treatment of digital advice services, including whether they should eventually contribute to industry levies such as the CSLR.

While the immediate focus is on the lead generation crackdown, the broader reform agenda touches on the compensation scheme and the digital advice setting. It is plausible that the government will face pressure to reconcile the new restrictions on aggressive outreach with the industry’s push for broader digital advice models, which rely heavily on data and automated engagement to reach members at scale. If the regulations on lead generation prove too restrictive, they could inadvertently stifle the expansion of legitimate digital advice services that currently face high compliance costs.

The government is also moving to address concerns within the sector regarding the Compensation Scheme of Last Resort. Industry bodies have long argued that the current framework does not adequately cover the risks associated with the digital advice setting, particularly as new entities enter the market. This gap in coverage leaves some providers exposed to significant liability, potentially discouraging innovation and limiting the accessibility of essential financial guidance for Australians.

Super funds have expressed cautious optimism regarding the proposed changes, noting that clearer rules could ultimately create a more stable environment for long-term investment. By defining the boundaries of permissible contact, the government aims to reduce the noise that currently obscures genuine member engagement.

The reforms represent a significant shift in how regulators approach the intersection of technology and finance. As automated systems become more prevalent, the balance between accessibility and protection remains delicate. Policymakers must ensure that new rules do not inadvertently create barriers that prevent Australians from accessing the advice they need to secure their financial future.