The Industry Super Network (ISN) needs to explain how a current torrent of television advertising serves the best interests of super fund members, according to both the Financial Planning Association (FPA) and the Association of Financial Advisers (AFA).
Commenting on a spate of industry funds’ television advertising that has coincided with major football finals and the Rugby Union World Cup, AFA chief executive Richard Klipin said he believed the ISN needed to explain itself in circumstances where it appeared millions of dollars were being spent on prime-time television advertising when markets were volatile and superannuation returns were in negative territory.
The advertising was also occurring at a time when, if a person were to switch funds, they might crystallise any losses they had incurred.
FPA chief executive Mark Rantall said he was concerned that such advertising expenditure was occurring when super returns were under pressure.
As well, he said the compare-the-pair advertising campaign was "redundant in a post FOFA and MySuper world where commissions are banned.
"This will confuse consumers by raising a distinction that is no longer relevant," Rantall said.
Klipin said the ISN has said a great deal about financial planners acting in the best interests of their clients, "so we believe it is incumbent on the ISN to explain how this television advertising is in the best interests of their members."
Klipin acknowledged that there had also been recent television advertising in support of the financial planning industry, but pointed out that this had been fully sanctioned and specifically funded by planners.
He said he believed most members of industry superannuation funds, by comparison, would be unaware of the amounts of money being directed towards television advertising either directly by their funds or via the ISN.
"The best interests question has to be asked and the ISN needs to explain how this recent advertising serves the best interests of members," Klipin said.
