HSF Kramer Submission – Treasury Consultation on Curbing Lead Generation Activity

On 7 April 2026, Treasury released a consultation paper seeking feedback on policy options to curb lead generation activity linked to financial products, with a view to better protecting consumers from high pressure sales and cold calling. The consultation is in response to the collapse of the Shield and First Guardian Master Funds.

Our team has made a formal submission on this consultation.

We agree with and strongly support the need to properly protect retail clients in the Australian financial system from harmful lead generation practices, such as practices of the kind alleged in relation to the Shield and First Guardian collapses. However, we consider that certain of the reform proposals canvassed in the Consultation Paper would have unintended effects beyond the regulation of harmful lead generation practices, and risk unduly restricting legitimate marketing, financial advice and consumer engagement activities.

A singular focus on lead generation can also distract from the important role of other parties in the value chain. In our view, had each layer of the ecosystem been appropriately regulated and supervised (such as through targeted enforcement action against lead generators providing unlicensed advice and financial advisers providing defective and inappropriate personal advice), the consumer harm generated by the
Shield and First Guardian collapses could have been avoided or, at least, reduced. 

At its core, lead generation is an activity designed to create consumer interest in a product or service. In our view, where lead generation is limited to legitimate marketing or analogous activities in relation to existing superannuation funds, such activity has an important role to play in increasing member engagement and contributing to a thriving and competitive financial services market. 

If you would like to read a copy of our submission, download a copy here.

If you have any questions, get in touch with one of our experts below.