Not paying commissions makes industry funds "unique", according to the Industry Super Funds Network, but the fact is some industry funds do pay commissions to advisers. And don't regret it.
Although many planners and industry groups would like to move away from the commission debate - saying the method of remuneration is irrelevant when disclosure is properly engaged - it is hard to ignore given the recent big budget ad campaigns.
In the past commissions were seen simply as another way to pay for a service, but this attitude has changed. Consumer advocate the Australian Consumers' Association (ACA) argues commissions to financial advisers should be seen more as a marketing tool.
"Commission payments to financial planners . should be considered in the context of this discussion about promotional advertising," it said in its submission to the parliamentary super inquiry. The ACA argument may also explain the move by industry funds towards paying commissions as they struggle to make themselves relevant to financial advisers.
Accountants Super chief Kevin Beasley says he wants his fund to be part of the financial planner's tool bag. As a result he enlisted retail distribution group The Private Collection to market the fund to advisers and dealer groups. Beasley defended advice fees as transparent because the amount the planner was paid was at the client's discretion.
Health Super and Statewide Super also defend the 0.5 per cent trailing commissions on some of their products by saying, quite simply, a planner needs to be paid for his job.
"If we want to take a product nationally we have two options: we can set up offices in every state . or we can use the financial planners in those states. We took the second option, so we have to pay the adviser for providing that service," Statewide chief executive Frances Magill said. "There is no objection to planners being paid, just to the rate at which they are paid."
In the case of Health Super, because trailing commissions only go to the two advisers in Health Super Financial Planning, the fund remains true to the other industry fund promise of all profit to members.
While no one is prepared to admit it, perhaps what they all mean to say is, "if we don't pay commissions, advisers won't have a bar of it".
