Cbus Super has backed federal reforms targeting predatory super spruikers threatening Australians’ retirement savings after the Shield Master Fund collapse.
Cbus Super said it would work with the Australian government to support its commitment to building a stronger and safer retirement system.
The fund has long advocated for tightening rules on lead generators and ensuring all super products meet consistent standards.
Cbus Super CEO Kristian Fok said the fund would continue pushing for reforms that will safeguard the savings of its more than 900,000 members.
“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 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.”
Fok has previously described how super spruikers are the ‘Wild West’ of superannuation.
The fund said its members were increasingly being targeted on social media, where clicking a video or completing a free survey could lead to high-pressure sales calls framed as legitimate financial advice.
Members described persistent and confusing tactics aimed at pressuring them into super switches.
“If you say you’re not interested you get another call the next day by someone else … they keep calling you back until you give in, and before you hang up they ask you a million questions … you hear a lot of people getting scammed like this … and they keep pushing you until you break,” said a 36-year-old Cbus member.
“Very full on at the start, but once you signed up that was it … they were hard to find after that one,” said a 56-year-old member.
Cbus said the government’s proposed changes must outlaw these tactics to prevent financial harm and restore trust.
The fund said it would work with the government to crackdown on misleading super sales, strengthen member protections, and improve transparency.
“The collapse of First Guardian and Shield Master funds this year left over 11,000 Australians who invested $1.2 billion facing an uncertain financial future,” Fok said.
“Many were lured into these super products by these online ‘lead generators’.
“We need a united front of funds, regulators, and the government working together to ban online lead generators and protect members. Australians deserve a system that safeguards hard-earned savings.”
