Cbus Super has backed calls from outgoing ASIC chair, Joe Longo, to ban cold calling in superannuation, as pressure builds to dismantle the lead generation model linked to major investor losses.
Speaking at a Financial Counselling Australia conference in Cairns earlier this week, Longo said structural reform was needed to stop unlicensed operators targeting Australians’ super, arguing enforcement alone cannot address what he has described as systemic misconduct.
“We must disrupt the lead generation model that has enabled this conveyor belt of consumer harm to occur,” Longo said. “One way to do it… would be to ban unlicensed communications about superannuation.”
Cbus chief executive Kristian Fok said the fund “wholeheartedly” supports that position, warning the current framework was failing to protect members from aggressive sales practices.
“We wholeheartedly support Joe Longo’s call to stamp out lead generation activity which is putting Australians’ retirement savings at risk.
“We’ve been really clear about the need for a more contemporary and resilient framework to protect people from these predatory and high-pressure sales tactics,” he said.
“We are calling for an outright ban on these tactics to protect members’ hard earned savings. We will continue to advocate for our members and for everyday Australians to protect what they’ve earned and maintain trust in the compulsory superannuation system.
“As long as there are gaps in the system, Australians’ retirement savings will be at risk from unscrupulous operators.”
Regulatory concern has intensified following the collapses of Shield Master Fund and First Guardian Master Fund, which left around 12,000 investors facing losses exceeding $1 billion and exposed the role of cold calling and digital lead funnels in driving super switching.
Longo has framed the issue as a “conveyor belt of consumer harm”, pointing to a pipeline where consumers are drawn in through online tools, contacted unsolicited, and then steered into complex, high-risk investments through conflicted referral arrangements.
ASIC has warned these practices are driving Australians out of super into products they often do not understand, with the regulator shifting its focus from individual misconduct to the broader distribution model enabling it.
Treasury reforms under consideration would bring lead generation activities within the financial services regime, including banning unlicensed communications about super and tightening rules around switching and referrals, as industry support grows for a full prohibition.
