Confidence within Australia's financial planning industry has been reduced by scandals such as Storm Financial and Great Southern and not by campaigns run by the industry superannuation sector, an industry chief has said.
Industry Superannuation Network chief executive David Whiteley has dismissed claims made by Association of Financial Advisers (AFA) national president Jim Taggart that the industry superannuation sector has a lot to answer for with its "anti-adviser" advertising campaigns.
"Confidence in the financial planning industry and consumer confidence in the financial planning industry has reduced because of scandals such as Storm Financial, Timbercorp, Westpoint and Great Southern," Whiteley said.
"I don't think consumer confidence in the financial planning industry has been reduced because of industry super fund advertising."
Whitely said the advertisements were designed to educate industry fund members about the benefits about being a member of an industry fund and also about commissions and high fees on their retirement savings.
"I suppose the Cooper review and also the Ripoll inquiry have seemingly made the same conclusions," he said.
Taggart has described the industry fund movement's multi-million dollar advertising campaigns as stoking and prolonging the crisis in consumer confidence.
"Members' money could be better spent on campaigns which set about restoring confidence in superannuation and advice, so that consumers are better positioned to grow their wealth and protect their assets," he said.
He said if the industry funds continued with their negative campaigns, advisers must prepare themselves.
"We have been too quiet for too long and, ultimately, silence becomes consent," he said. "The future of advice is now up for grabs and the only people who can fight this battle are those of us who truly believe in the value of advice. No-one else is going to fight our battles for us. We have to stand up for what we believe in."
Taggart's comments follow the release of Roy Morgan research on the low level of consumer trust in advisers. The research found a ban on commissions could make financial advice unaffordable for the very people who needed it most.
