Should FS lead gen firms be banned?

I'm astounded that these paid-for lead generation websites haven't come under more scrutiny. Consumers certainly don't understand how they work and that they're inherently biased toward the firms that pay their hefty subscriptions. It's unsurprising really, when supposedly impartial organisations such as Which? and even government-backed bodies like Money Helper promote their business to the unsuspecting public.

I used to be a subscriber to Unbiased. I specialise in one financial services product so I got no leads as I was up against financial advisers who were providing advice across all areas and taking leads for everything. I am a specialist in my field, which is great for the consumer. It would be fairer for consumers if firms pay a separate subscription cost for each area of advice that they wish to recommend. That way, if they do not specialise in a financial product, they are less likely to want to pay for these leads. I do not believe that lead generation sites should be banned but it is important that due diligence is carried out before a firm is registered. This will ensure that advisers have a good track record of providing this advice and can provide positive client testimonials. Firms that wish to cover every area of financial advice should pay a higher fee. A good referral portal with vetted, specialist advisers is going to provide a better consumer outcome.

Marketing is a hot topic with the FCA at the moment but it doesn't feel like it's regulated firms where the bad practice exists on an industrial scale. Lead gen businesses that bamboozle someone into giving their details so they can sell them on are a blight on the industry. It's interesting when you ask advisers what they think about these bought leads and it's very common to hear that customers weren't expecting to talk to an advisor or thought they were getting something else from inputting their details. I really think the regulator should do some sort of marketing campaign around how to access good advice. Something simple like 'Go on Google, search for mortgage advisers near you, and contact someone with great reviews'. Hardly complicated.

We never paid for leads through Unbiased but subscribed for some reason, just to show we were on there. We unsubscribed a while ago. It was a direct debit we forgot about and eventually thought 'what's the point?' Let's be blunt, selling leads by its very nature is a rigged game. Any company that genuinely stands by the quality of the enquiries they generate will be happy to take a commission split on successful business and avoid the hassle of having to refund advisers for duff leads. With that arrangement, both parties are working towards the same goal of helping as many customers as possible and high conversion rates. However, websites like Unbiased don't do this. Any adviser considering using them to acquire clients needs to ask themselves why.