Lead generators bring in over a third of new clients for licensees using them and in some cases earn contingent referral payments worth up to 100 per cent of the advice fee paid by the client, according to the corporate regulator’s review of the controversial practice.
The Australian Securities and Investment Commission review of 15 Australian financial services licensees who had involvement with so-called lead generators found that many had weak controls over the practice, which is used to identify and encourage people to switch super funds and review their other investment strategies.
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