# ASIC Warns Australian Advice Licensees as Lead Generation Drives 35% of New Clients

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/52718
Published: 2026-11-10T01:34:47.000Z
Updated: 2026-11-10T01:34:47.000Z
Section: Regulation

> Lead generators referred about 7,639 clients to 15 licensees during the review period. Those clients invested about A$678 million, with about 90.6% in superannuation.

Australia’s securities regulator, the Australian Securities and Investments Commission (ASIC), warned advice licensees Nov. 9 that lead generators' role in advice could threaten licenses, with referrals bringing 35% of new clients at 15 firms.

ASIC examined personal financial advice to retail clients from Jan. 1, 2025, to June 1, 2026. Lead generators brought in about 7,639 new clients across the licensees. Those clients invested about A$678 million after referrals, with about 90.6% of the amount identified as superannuation.

More than half of the licensees let lead generators perform at least one task ASIC considers part of financial advice: gathering client information, assessing risk profiles or discussing recommendations. Seven licensees received 60% to 100% of their new clients through lead generation; for three, the share was 93% to 100%.

The licensees deducted A$9.8 million in upfront advice fees, while clients agreed to another A$4.5 million in annual ongoing fees. Some referral partners were paid only when a prospect became a client, with payments ranging from 80% to 100% of the upfront fee.

“Commercial incentives must not come at the expense of consumers,” ASIC Commissioner Alan Kirkland said. ASIC said it would continue enforcing existing laws where it found evidence of serious consumer harm.

A firm’s inclusion in the review is not a finding of misconduct and does not indicate involvement in either the Shield Master Fund or First Guardian Master Fund collapses.