Overview
- Assistant Treasurer Daniel Mulino will outline a draft consumer protection package this week that targets the sales channels used to recruit people into risky managed investment schemes.
- The draft would ban unlicensed real‑time communications about superannuation and require licensees to take reasonable steps to police lead generation from social media, online ads and cold calls.
- The government proposes tighter anti‑hawking rules with stronger consent requirements, a narrower exemption for advisers dealing with existing clients, and tougher penalties for breaches.
- The reforms respond to the collapses of the First Guardian and Shield Master Funds, losses regulators and industry groups say affected thousands of retirement savers, with the Financial Advice Association of Australia citing about 12,000 people harmed.
- Treasury has also signalled concerns about the rising cost of the Compensation Scheme of Last Resort and in April floated the option of SMSF contributions, a proposal that could shift costs onto advisers and consumers and will be debated as the draft moves toward legislation.