In the space of a month, the chief of the Industry Superannuation Network (ISN) has hurled at least two metaphorical hand grenades at the retail industry.
His gripe? Earlier this month it was the issue of the proposed Future of Financial Advice reformís opt-in mechanism. Whiteley claimed a decision on opt-in would determine the failure or success of the governmentís proposed reforms.
This week? ISN has called for retail superannuation funds to rule out any reporting methods that fail to disclose the real cost of commissions and the lack of disclosure surrounding retail super funds.
ISN said retail super funds have adopted a reporting method that reports super fund returns without including the costs of administration fees or ongoing advice fees or commissions.
It is estimated this method makes the reported returns of retail super funds appear an average of 0.7 per cent a year higher. However, fund members would not receive increased returns, ISN said.
ISN is, of course, entitled to its opinion, though many within the industry have speculated about whether its sudden media push is possibly mis-directed promotion.
There is no doubt ISN is a passionate advocate for Australiaís industry super fund sector and there of course needs to be greater understanding and disclosure, yet shouldnít the push for greater disclosure be an industry-wide push?
Aside from the obvious, shouldnít ISN push for greater fee disclosure from all providers within the financial services industry, be it financial advisers, product providers, retail superannuation funds and industry super funds?
ISN is well known for its strong views, and the firmís comments in the past few weeks have done a good job of stoking the fire if it wishes to reignite a divide between the retail and institutional sectors.
Letís not forget the discord created between financial advisers and industry super funds through the Compare the Pair campaign.
This is by no means a personal attack on ISN, more an observation. It appears ISN stands among silent peers on this debate. Where is the Association of Superannuation Funds of Australia or Australian Institute of Superannuation Trustees?
While this is nothing more than speculation, is it perhaps a case that the ISN is an industry super firm that is protesting too much?
