While it may portray itself as being an organisation with the rights of its members at heart, for much of this year, ISN has seemingly had a rethink of its mission statement with a renewed vigour to create issues for Australia’s retail wealth management industry.
I have no doubt friendly banter between associations is welcomed, and of course not everyone is going to see eye-to-eye on all matters. However, the obvious disdain ISN has for financial advisers has surely gone too far.
Earlier this month, research commissioned by ISN was used by the federal government to push its costing of opt-in under its Future of Financial Advice (FOFA) reforms.
Yes, of course the finger should be pointed at Assistant Treasurer Bill Shorten over Treasury’s decision to trust such research so wholeheartedly.
However, it would appear ISN has become entrenched in the Labor Party. It would bring Australia’s retail sector little comfort that Prime Minister Julia Gillard offered glowing remarks recently about ISN and its chief executive, David Whiteley.
“You should feel proud that under David Whiteley’s leadership, you stood with us from the earliest days in our determination to secure a better retirement for all Australians,” Gillard said.
“You stood with us to get rid of the conflicts of interest and the excessive fees. You stood with us to secure the iconic opt-in policy to bring fairness to financial advice.”
Of course, the speech was made directly to an ISN audience, and like every good performer, it would be a crime not to flatter the audience starring back at you.
So what now? Should the advice industry retaliate?
The Financial Services Council recently had a try, refuting ISN on its recent fund research. And how did that end up? It ended up as back-and-forth conversation with no real resolution.
Perhaps it’s time for the industry to become a little more selective in the battles it fights.
What is it that they say about bullies: ignore them and they will go away?
Surely consumers would benefit from a focused adviser, someone who has the sole interest of their clients’ personal financial situation on their mind rather than that of naysayers?
In this week’s magazine, we have chosen to focus on the strengths of the advice market, in particular the need for stronger brand. In light of the FPA releasing its marketing campaign, and the Association of Financial Advisers believed to be close to releasing further details of its own, it seemed good timing to ask the experts how the advice industry can better market advice.
As an aside, this is my last editorial for IFA. After three years, I leave you in the more-than-capable hands of my new co-worker Philippa Yelland, while I assume the editorship of IFA’s sister publication, InvestorDaily.
I thank you all for an amazing ride and look forward to tackling industry issues on a daily basis.
