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With commissions in super now on the way out, it’s time for the public relations campaign run by industry funds to end, according to principal of business broking firm Radar Results, John Birt.
In a recent communication to clients Birt described the public relations war between industry and retail funds as “ridiculous”.
He argued the advertising campaign run by the industry funds had had a negative effect on the financial planning industry, and the superannuation industry as a whole.
“If I had an industry fund, I wouldn’t be too pleased seeing all that money wasted. As a whole, its effect on the financial planning industry is serious and unwarranted.”
However, speaking later to Money Management, Birt said he supported many of Chris Bowen’s proposed reforms to the financial advice industry, in particular the removal of trailing commissions to advisers paid from super accounts.
He also acknowledged the industry funds’ advertising campaign may have helped bring that issue to the Government’s attention.
“I suppose you could say they did. I just think the money could be well spent in other areas of industry funds. That’s one point, the other point is maybe it did wake the Government up,” Birt said.
But given commissions in super were now on the way out, Birt said it was time for the campaigns to end.
In his opinion, “the industry funds should be tipping all the costs of those adverts back into their member’s super accounts”.
“I’d like to think it will [settle down], yeah. It’s been negative and counterproductive for the entire superannuation industry.”
