In a move to incite reaction in the industry, dealer group Professional Investment Services (PIS) has taken it upon itself to call for action over the industry fund advertising campaigns that take a dig at financial advisers for receiving commissions.
Last week, PIS managing director Grahame Evans said: “Industry funds do offer an efficient low-cost service to Australians in terms of their superannuation, but at the same time advice, if it is to be quality advice, comes at a price.
“We don’t have the finances to go head to head with the advertising campaigns of industry funds, but it’s not about tit for tat as much as it’s about ensuring the public is fully aware of what each, in fact, offers.”
A day later, the Association of Financial Advisers (AFA) offered its support to PIS’s bid to tackle industry fund advertising campaigns.
Commenting on the move, AFA chief executive Richard Klipin said: “The role of the adviser is to offer comprehensive advice that helps their clients to build, manage and protect wealth.
“This debate is about the value of advice – it is not just about price.”
Klipin makes a good point here. A point that perhaps the average Joe/Jo may miss.
While it’s a given that we currently live in a harsh economic climate where people are concerned about where and how they spend their money, surely quality is what people are ultimately seeking.
Rather than bemoaning the fact that industry funds take a dig at advisers, perhaps the more important element here is how is it that the industry super sector seems to hit the target market so well?
The ads might hit hard at our industry, though if you take the emotion out of the advertising, it is quite powerful.
They are simple without being simplistic, and most of all, offer an element of realism, in the sense that no-one wants to feel like they are losing out.
It is all well and good for Australia’s largest dealer group to put its hands up and say “we don’t want to take this anymore”, and for an association like the AFA to support such a notion, though really, what are they going to do?
Perhaps this industry needs more action and fewer decisions over who will act?
