AFA speaks out against industry funds' ad campaign

The Association of Financial Advisers (AFA) has echoed earlier comments by advisers of Professional Investment Services (PIS) questioning the industry funds' advertising campaign on superannuation.

As reported in an initial report in Money Management, PIS advisers at a company conference in Kuala Lumpur raised the idea of a lobbying program to combat advertising campaigns denigrating financial advisers who receive commissions.

"The industry super funds would have you believe that advice is just about superannuation. In the long term, this argument is doing the Australian community a disservice because it creates a negative perception on superannuation, a negative perception on the role of financial advisers and a negative perception on the value of comprehensive financial advice," said AFA chief executive Richard Klipin.

"This debate is about the value of advice, it is not just about price. The financial world is one of many colours and whilst industry funds try to dumb down the debate and paint it in black and white terms, the truth is that there is a great deal of complexity in major financial decisions facing the Australian community," Klipin said.

If the consumer is aware of what they are paying for in advice, it shouldn't matter whether it is in the form of a fee-for-service or a commission, Klipin said.