Superannuation lost to dodgy schemes now target of crackdown | The Business | ABC NEWS

Unlicensed telemarketers who cold call and make unsolicited approaches to convince people to switch their super will be banned under long-awaited reforms. Assistant Treasurer Daniel Mulino has announced a raft of measures to better protect Australians from operators that rob them of their retirement savings. The reforms follow the collapse of the Shield and First Guardian funds, which saw 12,000 people lose more than $1 billion in retirement savings and exposed deep flaws in the regulation of Australia's almost $4.5 trillion retirement savings pool. Mr Mulino said the changes include requiring lead generators to hold a licence, super trustees to pay compensation if they fail to vet investments on their platforms and strengthening audit requirements. "These reforms are designed to disrupt some of the most damaging business models operating in the system today", he said. The government is also making changes to the Compensation Scheme of Last Resort (CSLR), which was introduced after the banking royal commission to compensate victims of financial misconduct. But with more claims from recent collapses, the scheme's under pressure. The government wants to tap super funds and SMSFs to help pay for it, and will limit payouts so that victims only get back the capital they invested, rather than the interest they would have theoretically earned on their investment had the misconduct not occurred.
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Read more here: https://www.abc.net.au/news/2026-08-19/telemarketers-the-target-of-government-crackdown-super-switching/107045422

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