Industry Fund Services (IFS) has agreed to change its super choice advertising campaigns “Compare the Pair” and “A Lifetime of Difference” after the Australian Securities and Investments Commission (ASIC) raised concerns that the advertising may confuse consumers.
The long-awaited industry funds campaign, which involved both television and print media advertising, was suspended on May 27 pending the outcome of a discussion with ASIC.
Following that discussion, IFS agreed to stop using projections of retirement payouts or future fund balances comparing fees without proper qualification, and to stop representing fees as the only relevant factor for comparison of funds. IFS agreed to change the advertisements, but did not accept ASIC’s view of the campaign.
Just before its suspension, the campaign also came under criticism at a conference of major superannuation funds in Hobart where it was suggested that such advertising might be in breach of the sole purpose test.
ASIC deputy chairman, Jeremy Cooper, said all advertising about choice of superannuation funds must be clear, accurate and unambiguous, with the correct level of detail set out for consumers.
“This is particularly important with the introduction of super choice on July 1,” he said.
“ASIC will continue to work cooperatively with the superannuation industry to ensure that any concerns are resolved quickly and in the interests of better information for consumers. We certainly don’t want to stop funds from explaining the benefits of their products to consumers, provided they don’t go too far.”
