FPA ad campaign ‘bad advice’ says Weaven
Industry superannuation funds figurehead Gary Weaven has used superannuation fund performance data to take a swipe at the Financial Planning Association’s (FPA) recently launched Value of Advice Campaign.
Weaven, who is the executive chair of Industry Funds Services, said he was particularly concerned that the FPA’s television, print and Internet campaign was “largely paid for by . . . firms trying to sell superannuation and other financial products through [their] advisory networks”.
The data, compiled by ratings house SuperRatings in a monthly survey released in June this year, showed that the average net investment return over one year was 1.5 per cent higher for “the average industry super fund” than it was for nine master trusts that were “clearly identified with the FPA member’s sponsoring the ads”.
According to Weaven, industry funds performed 5.2 per cent better than the nine master trusts he associated with the advertisements over three years, and 11 per cent better over five years.
“So you might want to seek good financial advice. But in regard to your superannuation you might want to join an Industry Super Fund and avoid paying trailing sales commissions to planners or accountants for the rest of your working life.”
The FPA’s Value of Advice Campaign, which began on October 7, was funded by over 30 of its members, many of them large institutions.
Chief executive Kerrie Kelly has consistently rebuked claims the campaign was undermined by its reliance on industry funding.
Speaking to Money Management last week, Kelly said: “Nowhere in the campaign is any type of product pushed . . . The voice of reason in the campaign points people to the FPA and to get a ‘good advice’ kit. The planners listed on the FPA’s Find a Planner service must be principal members or practicing members of the FPA, and no bias is shown to supporters of the campaign in this.
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