Comment of the Week goes to....

by |

Thanks to everyone who shared their thoughts on last week’s comment. This week we have searched for a comment that we think reflects the industry in a more positive light and generates more discussion.

“James Smith” has responded to Thursday’s article, in which SuperRatings predicted an increase in super fund member fees.

In the original article, Adam Gee said, “What we suggest is we’ll probably start seeing asset-based fees from administrators coming in or activity-based fees more so than these dollar-based fees that they currently charge.”

Here is James’ response:

“The truth is the $1 a week admin fee has never been the true admin cost. The TV ads that compare after fee performance over 20 years are clearly based on faulty assumptions and should be banned. How many consumers acted on the assertions made in these TV ads? Who is going to be held responsibility for misleading consumers? Direct marketing to consumers without adequate regulation makes a mockery of the significant gains made in the advice industry to protect consumers. The industry funds track record in using such advertising should highlight the need for scepticism in the legislation they have been lobbying government to implement.”

Do you agree with the comment?

Thanks again to everyone who has commented over the past week. Keep them coming and check in next week to see if your comment out-talked the rest.

  • Innocent Observer on 30/08/2013 12:51:13 PM

    Before completely beating-up on ISN, it's worth having some perspective.

    It's true that a lot of the propaganda spouted by ISN is full of statistical bastardisation with the motive of convincing the Aussie public that fees are the centre of the universe, and advice is a mug's game.

    It's not surprising that the advertising agency that produce the advertisements is also heavily involved in a particular political party's campaigns). Per the political themes, accuracy is less important than impact - and in my opinion their advertisements are extremely effective for the un-advised majority.

    That aside, there is definitely a place for low-cost, set-and-forget superannuation plans. ISN have some great product options in this space, and their marketing is far more prominent/effective than any of the retail providers' options (some of which are cheaper than ISN).

    On this point, if ISN worked WITH advisers and not against them then everyone would benefit.

  • Leanne on 30/08/2013 12:00:05 PM

    Definitely and as much as I like to forget industry funds exist most of the time because they bag us for doing what we believe is right. I can't help feeling a little smug when a some of our clients call into office to thank us for their 20% or more return after all ongoing fees including our advice fee when I think of what they would have got if the stayed with QSuper or Australian Super 10.97% or 15.63% without any advice. I know what goes around comes around but if you spend Millions telling investors how much others fees will hurt you maybe you should be made to spend some money to tell investors that sometimes it can benefit you enormously.

  • Fedup on 30/08/2013 10:39:25 AM

    Yes

WP forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Name (required)
Comment (required)
By submitting, I agree to the Terms & Conditions