The Association of Financial Advisers (AFA) has called for a truce between advisers and the industry super funds network (ISN), saying there is room for both in the market.
In his opening address to the AFA’s 2011 National Conference, President Brad Fox said: “We’d like to extend an olive branch to the ISN. It’s time to remove the negative advertising, and champion the value of advice.”
Mr Fox’s comments were followed by an industry panel which included MP Bernie Ripoll, and ISN CEO David Whitely.
I think your objections to our advertising would be substantially less if the ads weren’t as effective
Mr Whitely said the advice industry’s criticism of the ISN’s ‘Compare the Pair’ advertising campaign served as an indication that the ads had been successful.
“I think your objections to our advertising would be substantially less if the ads weren’t as effective,” he said.
Mr Whitely added: “I strongly doubt ‘Compare the Pair’ is having a huge negative effect on consumer’s confidence in super. There’s no evidence to suggest that, and in advice.
“What consumers want is impartial financial advice.”
Mr Whitely also pointed out the industry funds agreed with advisers that the original best interest duty was too prescriptive.
“We do have a lot of shared views. We both took the view that the best interest test was too prescriptive. Like you, we think it’s a reasonably strong proposition that people should understand,” he said.
AFA CEO, Richard Klipin, said it was important for all areas of the industry to unite, and cited a recent comment by Paul Keating in which he said the current reform process was lacking a strong narrative.
“There’s no narrative, there’s no story, there’s no grand vision, and no compelling reason why certain things are happening. And I think with FoFA that’s exactly the case.”
