Has there ever been a more effective financial services advertising campaign than the industry fund movement’s “compare the pair” series? If I ever suggest that the message of the ads was not anti-financial planning but simply anti-commission, I’m almost guaranteed an argument. But let me tell you why I think I’m right.
At the same time that industry funds were campaigning against commission, they were building a financial planning capability. And it turns out they were building a very effective capability. It seems inconceivable to me that they would deliberately run such an effective ad campaign if it were to undermine the difficult and expensive work they were doing elsewhere.
Don’t forget that for many people superannuation is the largest asset they will own outside of the family home. That being so, it’s natural that they would approach their super fund for advice and help on how to make the most of it.
These people do not necessarily form a captive market for super funds; anyone is free to seek advice from anywhere they so choose. But if the place you go to first – your super fund – offers a high quality, relevant and affordable service, what are the chances you’ll then go and seek a second opinion? I reckon that number is likely to be quite low, given that 80 per cent of people don’t even bother seeking a first opinion.
Bill Danaher is no newcomer to the financial planning space, but if you haven’t watched what he’s done in the past, it’s worth having a look. Professional Planner spoke to Danaher four years ago in March 2009 when he was general manager of Q Invest, the organisation that provided fee-based financial planning services to the members of QSuper and to the public-offer division of the New South Wales-based First State Super Fund.
Now he’s driving the development of financial planning services for industry super funds.
Last month I suggested in an article on this website that industry funds might really be the enemy of the “mainstream” financial planning industry after all – but not because they don’t like financial planning. It’s because they not only like financial planning, they also do it very well.
The calibre and the quality of the people I met at Danaher’s Financial Advice in Super Symposium in Melbourne in February were a salutary reminder that quality is quality, and it’s as simple as that. Professionalism resides in the individual, not the institution.
I’d suggest you ask mum and dad super account holders if the compare the pair was anti adviser. We have and 80% of them thought it made seeking any form of financial advice less attractive.
But hey don’t bother asking those who really count just make up your own crap to make an article.
Lets see industry funds promote advice now commissions are to be gone. Don’t think it will happen as they are but it would be a nice change compared to bashing the advice industry for the past decade.