Industry funds have a lot to answer for, says AFA

The millions of dollars spent on “anti-adviser advertising campaigns” by the industry fund movement would be better spent on restoring confidence in superannuation and advice, according to the national president of the Association of Financial Advisers (AFA) Jim Taggart.

Responding to recent Roy Morgan research that revealed a low level of consumer trust in advisers, Taggart said industry funds had a lot to answer for.

“Such campaigns only stoke and prolong the crisis in consumer confidence brought about by the global financial crisis,” he said. “Members’ money could be better spent on campaigns which set about restoring confidence in superannuation and advice, so that consumers are better positioned to grow their wealth and protect their assets.”

Taggart called on advisers to fight back.

“The future of advice is now up for grabs and the only people who can fight this battle are those of us who truly believe in the value of advice.”

Referring to the Roy Morgan research that found that a ban on commissions may make financial advice unaffordable for those that need it the most, AFA chief executive Richard Klipin said it supported AFA’s Back to Basics Consumer Research, conducted by CoreData/brandmanagement earlier in the year.

“The Roy Morgan analysis says what the AFA has been saying for some time now, and that is that the current proposed ‘reforms’ may actually limit consumer access to advice,” he said.