Industry Fund Services chairman Garry Weaven has welcomed a new advertising campaign by the Financial Planning Association (FPA) for inadvertently spruiking the case for industry funds.
Weaven said the intention of the FPA campaign to trump the current IFS campaign by using its ‘compare the pair’ tagline had backfired, with the advertisements actually promoting the benefits of industry super funds alongside financial planners.
He said the FPA’s use of the IFS tagline “reinforces the notion of industry super funds as a separate super category, and we think anything that draws a distinction between industry super funds and other categories is a good thing, and therefore is to be welcomed”.
He also welcomed the FPA’s campaign, which is intended to promote the value of financial advice, as evidence of the traction the IFS campaign is gaining among consumers, and as a “good thing” in its own right.
“If financial planners want to demonstrate that they provide advisory services beyond super then good luck to them — we have no problem with that, and it’s potentially a good thing.”
He said that “beyond promoting the generic quality of industry super funds” the FPA campaign would have no impact on industry super funds or the effectiveness of the IFS advertising campaign.
“All it will really do, if it turns out to be effective, is to encourage consumers to see a financial planner, which, from our point of view, will be both a good and a bad result depending on which planner they get to see.
“If planners base their advice to clients in relation to super on whether or not they get paid a commission, then that’s not a good thing — not for industry super funds and not for clients, most times.
“On the other hand, there’s a growing band of planners that do recommend industry funds these days, but they are invariably those that charge on a retainer or an hourly rate.”
He added that the FPA campaign was not entirely accurate, notably as some industry super funds do provide advice, but “we’re not going to make a song and dance about this under the circumstances”.
He added, by contrast, that the IFS campaign is “continuing to find success” with the “simple message that if you’re looking solely for the best super you should probably just go to industrysuper.com”.
“The flip message is obviously that you certainly shouldn’t go to a planner whose business is base or trail commissions, or upfront commissions for that matter.
“This will almost certainly mean you don’t get recommended to an industry super fund, which, after all, have been the top 10 performing super funds over the last five years,” he said.
