Australian Regulator Takes Notice of Aggressive Cold Calling Tactics

Australian Securities and Investments Commission (ASIC) has issued a warning after identifying some cold-calling operators who use high-pressure sales tactics. The organization also uses online click-bait awareness to instigate customers into accepting improper pension plan transfer recommendations.

ASIC Wants To Take Measures Against Corrupt Actors

After accessing customers’ personal information through third-party data brokers or online click-bait. These cold-calling operators engage in unwelcomed calls to customers. These have pushed generation and referral arrangements with specialized financial advisers, who suggested customers switch to super options with notable fees.

Alan Kirkland, an ASIC commissioner, said that operators who focused on Australians within the age range of 25 to 50 years, were endangering individuals to the possibility of diminishing their retirement funds.

Mr. Kirkland also said that these cold calling operators are forcing customers in the key retirement resources phase to transfer their resources when it is disadvantageous. This will place them at risk of getting less super due to unwise investments, and fees.

Recently, there was an issued threat by the small subset of financial advisers, who are gaining from this process. The small subset of financial threatens to tarnish the reputation of the company.

Precisely, ASIC has noticed a large number of superannuation savings moving into dangerous property investment funds through APRA-regulated superannuation platforms.

The Organization Wants To Free Customers From High-Pressure Practices

There was a readiness to take measures by ASIC, said Commissioner Kirkland. These measures aim at protecting the customers and calling on financial advice licensees as well as super trustees to put every effort into eliminating corrupt actors and minimizing customer harm.

One major priority of ASIC is the elimination of cold calling for superannuation switching models. ASIC said it won’t stop until customers are free from high-pressure, cold-calling practices that force unacceptable superannuation-switching.

Speaking to the financial licensee and super trustees, Mr. Kirkland said these bodies have a crucial responsibility in fighting this behavior. They can alert ASIC upon discovering the behavior.

Financial advice licensees must guarantee that they have established sufficient monitoring and supervision arrangements to uncover illegal conduct. Their advisers should be deliberate in working towards the best interest of their customers.

ASIC anticipates trustees to be aware of the possibility of superannuation balance reduction. The regulator stated that these trustees should guarantee that they have strong systems and procedures to supervise fees of financial advice charges from customer accounts.

Recently, ASIC disclosed how trustees supervise consultation fees and will publish a report with important insights.

ASIC also introduced a consumer awareness program, advising customers to quickly end calls from telemarketers, and simply ignore social media alluring marketing hooks.